Explain about loans - forms of bank finance, Financial Management

Q. Explain about Loans - Forms of Bank Finance?

When a bank makes an advance in lump-sum against some security it is called a loan. In Case of a loan, a specified amount is sanctioned by the bank to the customer. The entire loan amount is paid to the borrower ether in cash or by credit to his account. The borrower is required to pay interest on the entire amount of the loan from the date of the sanction. A loan may be repayable in lump sum or installments. Commercial banks generality provide short-term loans up to one year for meeting working capital requirements. But now-a-days term loans exceeding one year are also provided by banks. The term loans may be either medium-term or long-term loans.

Posted Date: 6/20/2013 3:01:02 AM | Location : United States







Related Discussions:- Explain about loans - forms of bank finance, Assignment Help, Ask Question on Explain about loans - forms of bank finance, Get Answer, Expert's Help, Explain about loans - forms of bank finance Discussions

Write discussion on Explain about loans - forms of bank finance
Your posts are moderated
Related Questions
What is the primary assumption behind the experience approach to forecasting? The experience approach to forecasting is relies on the assumption that things will happen a fixed

We can discount cash flows either by using spot rates or forward rates, because a spot rate is simply a package of short-term forward rates. Assume that the cash

Q. What do you mean by Public deposits? Public deposits are the fixed deposited by the business enterprises directly from the company. This source of the raising the short term

X & Y is desirous to purchase a business and has consulted you, and one point on which you are asked to advice them, is the average amount of working capital which will be required

Question 1: Analyze the practice of democracy as advocated by the early Greek political thinkers. Question 2: To what extent can Man live peacefully with each other wi

Government intervention The government might look for intervene in the take-over bid because of fears that the market share of the combined group would constitute a monopoly wh

Explain what a bond is and discuss its nature as a "fi xed income" security.Discuss important terms in relation to bonds as the "price", "maturity", "current yield", "yield to matu

Restatement of investment appraisal In the following solution the tax allowances in relation to the initial outlay on equipment are evaluated separately. Other approaches are a

Call provision is the right of the issuer to call back and retire the issued bonds before the maturity date. The issuer may call the bond and retire the bond by paying

Explain the terms- Stock and  Share Stock Ownership of a company represented by shares that are a claim on the company's earnings and assets. Share Unit of equity