Which of the following lenders will possibly not ask the borrower to sign the terms of credit?

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Banks

Moneylenders

Cooperatives

Private Agencies

answer is B.

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Detailed Solution

Moneylenders will possibly not ask the borrower to sign the terms of credit.
The lenders, primarily belonging to the informal credit sector, usually don’t require a lot of terms of credit. Banks typically ask for collateral, along with cooperatives, who, although they impose fewer terms of credit than banks, still require terms of credit. Informal sources like moneylenders usually do not ask or make the borrower sign the terms of credit. The terms of credit dictate the rate of interest and the collateral that a borrower has to agree to avail of the loan. It is legally binding upon the borrower and the lender to stick to those terms. Since banks have a lot of paperwork and documentation, they ask the borrower to sign the terms of credit..

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