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EXPLAIN THE LOAN ACTIVITIES OF BANKS.

1. banks provide loans for various economic activities

2. banks keep only a small propotions of the deposits with them as cash

3. these deposits are used to meet the loan requirement

4. bank intermediates between those who have surplus funds and those who are in need of these funds.

5. bank offer very less interest on deposits than what they demand on loans

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Loan activities of bank
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Banks keep only a small proportion of their deposits as cash with themselves. For example, banks in India these days hold about 15% of their deposits as cash. This is kept as provision to pay the depositors who might come to withdraw money from the bank on any given day. Since on any particular day only some of its many depositors come to withdraw cash, the bank is able to manage with this cash. Bank use major portion of deposits to extend loans. There is a huge demand for loans for various economic activities.
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Loan activities of banks are as follow :
1.Banks keep small proportion of their deposits to provide loan.
2.Banks asks for collaterals from people so that it can be assure that the money will be back.
3.Banks also looks for documentation.
4.Banks provide loan at a lower interest rate.
5.The difference between money from loan with higher interest rate than the money given to the depositors is the profit of the bank. 
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loan activities of bank:
1) people deposit their money in bank in order to keep it safe and gain a bit interest.
2)bank keeps only 15% of balance with it and rest of money is given to people in the form of loan.
3)in this way the intermediate between people with surplus money and people who need money.
4)interest given to depositors are very less in comparision to interest imposed on people who take loan.
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pata nahi bhul gya
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The loan activities of a bank are as follows:- - People with surplus money, deposit it in banks to gain a reasonable gain and at the same time to keep it safe. - Banks keep 15% of the deposits in cash and the rest is given to people in form of loan. - Through loans, banks will recover the money with an interest (the percentage would be more then that of the deposits) - Then the bank will payback the money with that lower interest rate to the people who had deposited the money earlier in a fixed amount of time - For banks, the difference between the percentage of increment in deposits and the percentage of increment of money recovered in form of loan is the main income. - Banks also take various safety precautions in such transaction (loans) by taking collateral from the borrowers.
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Thanks jahnavi
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  1. Banks provide loans to people when required by the people.
  2. The loans given by the ban have to be repaid in a given time with some intrust, banks generally have low-interest rates (compared to informal sources).
  3. They give loans only for activities that can help grow the economy (not for things like functions, marriages etc. ).
  4. To acquire a loan from a bank collateral, proper documentation of collateral is mandatory.
  5. The bank is supervised by the RBI.
  6. The difference between the interest given by the bank to the depositors and received from borrowers is the income source of the bank.    


 I hope this will help... And all the best for your exams BTW  wish me luck too cuz I'm also writing the exam tomorrow (22/3/18)
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ru6j
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