decided to get a haircut from Taj Salon.
His father, who himself is a barber felt cheated. Money that was spent in Taj was equivalent to him cutting hair of 20 people.
When you give security to bank for a loan, then bank reduces the value of this security.
Banks reduces/cut the value, similar to a haircut to protect themselves from market risk.
Haircuts are depicted in percentage terms, it could be anywhere between 15-60%