Banking Exam Question - Explain the Division of Credit on the Basis of Nature of Transaction?

Introduction - Division of Credit/Loan on the Basis of Nature of Transaction

A credit is an obligation gave by an association or individual to another element at a loan cost, and confirm by a promissory note which determines, in addition to other things, the main measure of cash obtained, the financing cost the moneylender is charging, and date of reimbursement. Advances, for example, charge cards and mark advances are unsecured or not supported by guarantee. Unsecured advances normally have higher financing costs than secured credits, as they are more dangerous for the loan specialist. With a secured credit, the bank can repossess the guarantee on account of default. a measure of cash credited at enthusiasm by a bank to a borrower, as a rule on insurance security, for a specific time-frame. The bank credit is made on the agriculturist's note, by and large unsecured, however regularly secured by an asset contract.

Term Loan: 

The loan provided for more than one year for capital expenditure is called terminal term.

OD loan: 

This is the facility provided to its customers through license bank and financial institutions to withdraw more than the amount specified.

Trust Receipt Loan: 

Such a loan is usually provided through the certificate for the purpose of exporting goods import. Which is called import loan.

Real State Loan: 

It offers debt provided in the entire business work of real estate work, such as business buildings and residential arbitrators construction, land land purchases and planning etc.

Margin Lending: 

This kind of loan is flowed to any person or organization, while the cash flow is flown to a listed company as a stock or venture protection, which is called the debt of nature.

Hire Purchase Loan: 

The loan flowing for purchasing any vehicle or luggage, especially by the trader's account or the purpose of conducting freight or purpose, is called a hike purse loan. Such as etc.

Deprived Sector Loan: 

Deprived Sector Loans: The loans provided to the people with disability and small farmers, laborers and deceptive families, are actually low-income, socially backward women, tribes, dalit sections, blind, deaf and shrines.