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    Question

    What is the 'Margin' in the context of a bank

    loan? 
    A The profit the bank makes on the loan. Correct Answer Incorrect Answer
    B The borrower's contribution toward the cost of the project/asset. Correct Answer Incorrect Answer
    C The penalty charged for late payment. Correct Answer Incorrect Answer
    D The difference between Repo rate and Bank rate. Correct Answer Incorrect Answer
    E The total collateral value. Correct Answer Incorrect Answer

    Solution

    Margin is the portion of the asset's cost that the borrower must fund from their own resources, ensuring they have "skin in the game."

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