The Village That Sold Its Houses Twice: A Story of Mortgage-Backed Securities
In a peaceful village named Shantipur , people dreamed of owning their own homes. But houses were expensive, and most villagers didn’t have enough savings to buy one outright. Luckily, a kind banker named Rajiv ran Shantipur Bank , which gave home loans to the villagers. 🏡 How It Started: Giving Home Loans One day, Ramesh, a hardworking farmer, wanted to buy a house worth ₹10 lakh . 🔹 He borrowed ₹10 lakh from Rajiv’s bank. 🔹 In return, he promised to repay ₹20,000 every month for 30 years . 🔹 Rajiv held on to Ramesh’s loan papers (mortgage) as security. This was good business for Rajiv! The bank earned interest while helping people buy homes. Soon, hundreds of villagers took home loans, and the bank was thriving. 💰 The Bank Runs Out of Money After a year, Shantipur Bank had given out so many loans that it ran out of cash . Rajiv was worried. He couldn’t lend more money unless he got new funds . That’s when a sharp investor named Vikram from the city visited Shantipur. He ...