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Introduction to Salary Blocking
Loans are one of the major business for many retail banks around the world and also give good returns to the bank. Various products are offered to the customer depending on market needs, varying from short term loan to long term loan, commercial, real estate etc. However, this product comes with lot of counter party risk associated with it, loan default being the most common risk. Banks are striving continuously to mitigate this risk through various methods. This document explains one such method of loan default risk mitigation method followed.
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