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 are the advantages and disadvantages of incremental budgeting?

VK Ltd a multi-product Company, furnishes you the following data relating to theyear 2000.First Half of the year Second Half of the yearSales Rs. 45,000 Rs. 50,000 Total Cost Rs. 4

What is nondiversifiable risk? How is it measured? If not the returns of one-half the assets in a portfolio are perfectly negatively correlated along with the other half-which

Explain the difference between the discounted free cash flow model as it is applied to the valuation of common equity and as it is applied to the valuation of complete businesses.

Illustrate the term quality of benefits It is clear from Table that total returns associated with two alternatives are identical in a normal situation but range of variati

Role of Sponsor In the establishment of mutual fund trust, the main role is played by the sponsors. Both the trustees and the fund managers or the asset management company have

evaluate the importace of leverage in financial management of a small scale company

Info on applying CVP to product mix limiting factors

conflicts between shareholders and government in agency relationship

Explain about the Interest payments Debenture interest is generally paid semi-annually however annual payments aren't uncommon.  Usually there are registered debentures on whic