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प्रश्न
Answer the following question:
What are the different types of loans provided by commercial banks?
उत्तर
The following are the different types of loans and advances made by the commercial banks.
1. Loans: Loans can be of the following types:
a. Call loans: These are the loans granted by the commercial banks for a very short period of time, say about 5-7 days. The interest charged is the lowest in these kinds of loans. These are usually taken by stock brokers.
b. Short term loans: These are the loans provided for a period of not more than 2 years of time. Interest rate is higher than on the call loans but lower than the ones on medium term loans.
c. Medium term loans: These are the loans provided for a period of 2-5 years. The interest rate on these is higher than the ones on short term loans but not higher than those on the long term loans.
d. Long term loans: These are the loans provided for a period of more than 5 years. The interest rates on these are the highest of all the other loans.
2. Cash credit: In the system of cash credit, the banks first estimate the value of the assets held by the borrower. Based on this estimation, a credit limit is then decided by the bank for the borrower. The credit limit decided by the bank is the upper limit for the borrowings by the borrower. However, the actual utilization of credit by the borrower depends on his/her withdrawing power. The borrower is liable to pay interest only on the withdrawn portion of the credit.
3. Overdraft: Overdraft is a facility provided by commercial banks to the current account holders. Under this facility, commercial banks allow their customers to withdraw the amount from banks in excess of their account balance. The bank specifies the maximum limit of overdraft. A rate of interest is charged on the amount overdrawn.
4. Discounting of bills: The commercial banks provide financial assistance to the business community by discounting bills of exchange. A bill of exchange is a document that acknowledges the amount of money that is owed by the debtors as against the goods and services received by them. The banks purchase these bills produced by the customers after deducting interest on the face-value of the bill.
APPEARS IN
संबंधित प्रश्न
Accepting deposits from the public is the................................. function of Commercial Bank.
(secondary / general / primary / incidental)
Explain the primary functions of commercial banks.
The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is
called:( choose the correct alternative)
(a) Statutory liquidity ratio
(b) Deposit ratio
(c) Cash reserve ratio
(d) Legal reserve ratio
Explain the agency function of commercial banks.
Explain the process of money creation by the commercial banks with the help of a numerical example.
Distinguish between the following :
Quantitative and Qualitative measures of credit control.
Answer the following question :
What are the different types of loans provided by commercial banks ?
State with reason. Whether you ‘agree’ or ‘disagree’ with the following statement:
Commercial bank can credit on the basis of primary deposit.
Write short Answer for the following question:
Explain various types of Bank Deposits ?
Write short notes (Any Two)
Types of loans of commercial bank.
State whether the following statement is True or False with reason:
Commercial Banks cannot give interest on deposits.
State whether the following statements are TRUE or FALSE:
Commercial banks play an important role in economic development.
Give reasons or explain the following statement:
Every loan creates a deposit.
Explain the following concepts or give definitions.
Savings deposits
Write explanatory notes or answer the following.
Explain the primary functions of Commercial bank.
Distinguish between:
Central Bank and Commercial Bank
Fill in the blank with appropriate alternatives given below
Facility of E-banking is provided through __________
State whether the following statement is True or False.
Commercial banks are the backbone of modern economy.
State whether the following statement is True or False.
The saving bank deposit can be opened with a small amount.
State whether the following statement is True or False.
There is no difference between primary deposit and secondary deposit of a commercial bank.
Define explain the following concept.
Cash credit
Define explain the following concept.
Discounting of bills
Give reason or explain the following statement:
Commercial banks provide agency functions to earn profits.
Give reason or explain the following statement:
Rate of interest on fixed deposit is high.
Distinguish between:
Cash credit and overdraft facility
State with reason whether you agree or disagree with the following statement.
A commercial bank create credit on the basis of primary deposit.
State with reason whether you agree or disagree with the following statement.
Commercial banks perform many general utility services.
Answer in detail:
Explain the process of credit creation.
Answer in detail:
What are the secondary functions of commercial banks?
State whether the following statement is True or False :
Loans given by banks for a period of less than five years is known as long - term loan.
Explain the functions of a commercial bank.
Explain the role of Commercial Banks in economic development.
State any two components of ‘Net Factor Income from Abroad’.
What are the important features of a capitalist economy?
The process of money creation or credit creation is done by ______
Which of the following points states that the open market operation helps in controlling credit creation?
Which of the following are the other functions of a commercial bank?
What role of RBI is known as 'lender of last resort'?
M3 and M4 are known as ______ money.
Demand deposits include ______
High Powered Money includes ______
Consider the following statements:
- M1 is a broad concept of money.
- M2 is a narrow concept of money.
- M3 includes both M1 and lime deposit of public with the bank.
Which of the following is true with respect to the concept of supply of money?
In the case of Gross Domestic Capital Formation, which one will be the part of it?
Commercial Bank was facing a financial crisis due to the crisis of non-performing assets. It went to the RBI for help. What role will RBI play in such a case?
Railways is an example of:
Explain the functions of commercial bank.
