If many loans are written off (that is, borrowers are not required to pay back the money) how will this affect the working of the bank?

The banks provide the loan according to the demand, and the borrower has to follow certain rules and regulations to obtain the loan. The working of the bank could get affected negatively and positively depending upon to whom they lend the loan, and the amount of loan they have given. Also the loans are the only source of revenue through which the banks earns the interest.


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