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  3. Security is required on loans for several reasons. One of the most common is

Security is required on loans for several reasons. One of the most common is

游客2025-06-19  27
问题     Security is required on loans for several reasons. One of the most common is probably the borrower’s financial weakness. Such weakness may be indicated by several factors, including heavy obligations to creditors, poor management, and insufficient income. Borrowers in this financial condition can strengthen their credit by pledging certain assets. Having a secured loan may also be a psychological advantage for a bank. As long as the borrower has greater equity in the pledged assets than does the bank and the bank is in a preferred position and can foreclose in the event the loan a-greement is broken, the borrower has a strong incentive to repay the obligation. The length of a loan also has a bearing on whether it will be secured. As the term of the loan lengthens, the risk of non-repayment increases. Loans for purchasing real estate are nearly always secured, especially if the funds are borrowed for long periods of time, because of risk of non-repayment.
    Unsecured loans are based more exclusively on the borrower’ s integrity and financial condition, expected future income, and past record of repayment. Contrary to popular belief, the largest loans and the greatest dollar volume of loans made by some banks are often granted on an unsecured basis. The largest commercial borrowers are able to borrow on an unsecured basis. Some companies are considered by banks to be prime borrowers, and in many cases they receive the most favorable interest rate. Such companies have competent management, products and services that are well accepted in the marketable, relatively stable profits, and a strong financial condition. They provide their banks with financial statements from which it is relatively easy to determine their financial condition and keep track of their progress.
    Business firms are not the only ones who borrow on an unsecured basis—many individuals enjoy this privilege. Persons who own their homes, have a steady job which they have held for years, and have a record of prompt payment both at the bank and at retail stores are commonly in a position to borrow on an unsecured basis. An applicant’ s ability and willingness to pay are projected into various situations. [br] Banks will usually grant unsecured loans to______.
选项 A、individuals with steady job held for years
B、individuals with a good credit record
C、large commercial companies with a strong financial condition
D、all of the above
答案 D
解析 文章最后一段提到Business firms are not the only ones…on an unsecured basis．银行发放的信用贷款的对象一般可以分为个人和公司，作为个人必须具有固定的职业、较好的信用记录等，而公司客户则需要有良好的财务状况。
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