Securitisation is a process of liquidizing the assets held with financial institutions. If there are many auto loans given by a bank and instead of raising money through deposits and giving further loans, Banks can also do the following to increase its profits. - Bundle all the auto loans and form a security. - Raise the money through prospective clients with the help of other financial institutions. The risk lies with the bank and this gives more liquidity to the bank and the money generated through this process can be availed in giving further loans. In India, Securitisation has been there for long. Please visit this site for more details. Consider the Home loans now. Banks have done the due diligence and have approved home loans for 20 people for 1 crore. The mortgage would be the home for the bank. Now, If I am a person A thinking having very less money but ready to lend money for a prospective buyer who buys home and wants my part of interest back. Say, I have only Rs....