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
Q. How to Select the pattern of the investment? When the funds have been procured than a decision about the investment pattern is to be taken. The selection of the investment p

DEFINITION OF BUDGETARY CONTROL As per the ICMA, BUDGETARY CONTROL is the establishment of budgets, relating the tasks of executives to the requirements of a policy, and the c

limitations of using a periodic inventory system

Functions of Financial Management Traditional function of financial management has been limiting the role of finance toraising and administrating of funds required by the compa

Q. What is FV of a Single Present Cash Flow? the future value of a single cash flow is defined in term of equation as follows: FV = PV (1 + r)n Where, FV = Future value PV = Pr

what are the assumptions of MM(Modigliani Miller) approach

Dividends are expected to grow at a constant rate of 5 percent per year in the future. Firms last dividend was $1 and stock price 10 dollars the firms beta 1,2 the rate of return o

What is an annuity? An annuity is a sequence of equal cash flows, spaced consistently over time.

Question 1: "The governance of modern states demands that a relentless struggle be waged against the scourge of corruption." Discuss. Question 2: Explain clearly how th

Explain the term "present value of the firm's operations" (also known as Enterprise Value ).  What does this number represent? The present value of the company's free cash flo