Moderate

Bank loans are usually altered to have longer maturities in order to assist the borrower in making the necessary repayments. What these loans are called____________?

Correct answer: B. Rescheduled loans

  • A. Rearranged loans
  • B. Rescheduled loans
  • C. Altered loans
  • D. None of these

Explanation

Rescheduled loans have their repayment timetable or maturity extended to make instalments easier for the borrower to meet. The other terms are not standard banking terminology for this arrangement.

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