Business Loan

[Gus]

I'm trying to learn how business loans work. Let's say a friend has land valued at 10 million.

What is the maximum value that he can borrow from the bank using that land as collateral?

What about the worst case scenario when he pays half of the loan back and then defaults? Does he get anything after the bank disposes the asset?

Elimisheni mtu hapa priss.

 

[Cortedivoire]

Enda kwa bank ulize hizo swali. Meffi lazy

 

[Giggz]

I'm trying to learn how business loans work. Let's say a friend has land valued at 10 million.

What is the maximum value that he can borrow from the bank using that land as collateral?

What about the worst case scenario when he pays half of the loan back and then defaults? Does he get anything after the bank disposes the asset?

Elimisheni mtu hapa priss.

Valuation and Charging a property for collateral is long, expensive and tedious. Most give 60-70% of value. You finally get 75-90% of requested amount as the rest goes to those expenses unless they specifically say they should be out of pocket.