It has often been said that to lend money is easy but to recover it is something else. Loan recovery is of great concern to bankers.
Recovery of unsecured loans also occurs in situations where the bankers are suing the guarantors of the loan. In a normal loan agreement secured by guarantee, the principal debtor and the guarantor is usually made jointly and severally liable for the loan and in such a situation, the guarantors are usually personalities of some means and it is only natural that bankers would proceed against the guarantors with the hope that the loan advanced can be recovered.
1 comment:
That is why some lenders like payday loan companies offer much higher interest than the usual in order to leverage the risk of recovery. Payday loan companies are offering loans to even people with bad credit line, or mostly they do not scrutinize the record of the person as long as the person has a current stable income.
Well, if a borrowing person will spend the money wisely, payday loans are really a great help during emergencies.
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