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प्रश्न
Distinguish between the following:
Loan and overdraft
उत्तर
| Loan | Overdraft |
| Any account holder (i.e., current, savings or fixed deposit), or any other person can get a loan facility. | Only current account holders are eligible for an overdraft facility. |
| Bank opens a separate account for the amount of the loan and the borrower Withdraws from this account. | Bank allows the account holder to overdraw (i.e., draw in excess of his balance in his account) from his existing Current Account. |
| The purpose of the loan is to provide finance for some project or expansion of the business. | The purpose of an overdraft is to meet working capital requirements. |
| A loan is sanctioned for a relatively longer period such as 3 years, 5 years, or even more. | Overdraft is generally sanctioned for a short duration such as 1 month, 2 months, etc. |
| Interest is calculated on the sanctioned amount and the rate of interest is a little higher than that of overdraft | Interest is calculated on the amount actually withdrawn and the rate of interest is lower than that of loan. |
| The loan amount has to be repaid fully on the due date or it is repaid in suitable installments. | The overdraft amount is gradually reduced with the deposits made in the current account. |
APPEARS IN
संबंधित प्रश्न
Write a word or a term or a phase which can substitute the following statement:
Permission to withdraw excess amount from Current Account.
State whether the following statement is true or false :
Generally no interest is paid by bank on Current Account.
State whether the following statement is true or false :
In cash credit, customers account is credited by bank with sanctioned amount
State whether the following statement is true or false :
Overdraft facility is granted to Savings account holders.
State whether the following statement is true or false :
Bank overdraft facility is a long term facility.
Find the odd one:
Answer in one sentence:
Which facility is given to Current Account holder?
Answer in one sentence:
What do you mean by stop payment of cheque?
Attempt the following:
Write a letter requesting the bank for granting overdraft facility
Explain the following term/concept:
Stop payment of cheque
Explain the following term/concept:
Letter of Credit
Explain the following term/concept:
Discounting of Bills
Explain the following term/concept:
Recurring deposits
Explain the following term/concept:
Savings Deposits
Explain the following term/concept:
Demand Deposits
Correct the underlined word and rewrite the following sentence:
Under Cash Credit facility businessman /Accountholder can overdraw from his account.
Correct the underlined word and rewrite the following sentence:
Businessman opens Fixed Deposit Account.
