If a banker allows an advance by keeping 25 margin and the amount of loan is Rs 1 lakh the value of security would be?

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1062195

2026-04-24 09:10

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If a banker allows a loan of Rs 1 lakh against a margin of 25%, it means that the borrower must provide security worth 25% of the loan amount. Therefore, the value of the security required would be Rs 1 lakh divided by (1 - 0.25), which equals Rs 1 lakh / 0.75 = Rs 1,33,333.33. Thus, the value of the security would be approximately Rs 1,33,333.

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