Answer:
Before giving loan a bank ensures about the financial capacity of the borrower to repay the loan. For this certain conditions/ requirements have to be fulfilled. Suppose, person X applies for a home loan to a particular bank then he has to submit documents showing his employment records and salary before the bank agree to give him the loan. Bank can retain the papers of new house as collateral. If a bank is not satisfied with the paying capacity of a person and if a person does not submit anything to be considered as collateral, then banks might not be willing to lend to certain borrowers.
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