Q. What is Lending System?

Under the note lending system, the borrower takes a loan, usually of 90 days Duration, against a promissory note. The loan may be renewed or retired at the end of the period. The interest is payable on the entire loan amount and the borrower cannot secure interest relief by repaying The loan, partially or fully, before the maturity period. In this respect this system differs markedly from the. Overdraft Dr Cash credit arrangement wherein interest is payable only on the amount actually utilized.

Posted Date: 6/20/2013 3:02:52 AM | Location : United States

Ask an Expert

Related Discussions:- What is lending system, Assignment Help, Ask Question on What is lending system, Get Answer, Expert's Help, What is lending system Discussions

Write discussion on What is lending system
Your posts are moderated

Write your message here..

Related Questions

Cost of equity capital, What is Cost of Equity Capital? Describe please. What is Cost of Equity Capital? Describe please.

Highest earnings-per-share, McGovern Company is comparing two disimilar cap... McGovern Company is comparing two disimilar capital structures - an all-equity plan (Plan I) and a levered plan (Plan II).  Under Plan I, the Company would have 700,000 shares of s

Equity share valuation.., Mount Hutt Ltd. just paid dividend of $2.20 per s... Mount Hutt Ltd. just paid dividend of $2.20 per share. The dividends are expected to grow at a constant rate of 4% per year, indefinitely. If investors require an 11% return on Mou

Expected value application in finance - project evaluation, Project Evaluat... Project Evaluation The expected value calculations are crucial to project investment decisions. The following example explains the use of probabilities in project evaluation.

Determine the name of some profit margin ratios, Determine the name of some... Determine the name of some profit margin ratios Other profit margin ratios can also be computed: Gross profit/ turnover Profit after tax/ turnover Advertising co

Explains the reason for the negative synergistic gains, What can be the rea... What can be the reason for the negative synergistic gains for British acquisitions of U.S. firms? Negative synergies for British acquisitions of U.S. firms (united state firms) m

What is simply offensive and what is humour, a) Ethics can be a rather prej... a) Ethics can be a rather prejudiced matter; whether it is ethical to market products directly at children depends on several factors: The age of the children being targeted

Financial Management, Financial Management Initial Disclosures During the ... Financial Management Initial Disclosures During the process of discussion and negotiation with the client with regard to the financial affairs and the manner of operations of the

Registered and unregistered bonds, On the basis of transferability, d... On the basis of transferability, debentures can be classified as registered and unregistered debentures. Unregistered debentures (or bearer debentures) are freely

Illustrating a straddle, Options Traded on Legal and General August 14  200... Options Traded on Legal and General August 14  2009 Share   Price         Exercise      Price    Calls       Puts                                 Sep        Dec        Mar