Advertisements
Advertisements
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and the rate of interest is a little higher than that of overdraft | Interest is calculated on the amount actually withdrawn and the rate of interest is lower than that of loan.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:
Separate loan account under which the short term loan facility given by bank to the business
Select the correct answer from the options given below and rewrite the statement.
Withdrawals are not permitted from the ____________ deposit account.
Select the correct answer from the options given below and rewrite the statement.
__________ account is suitable to salaried people.
Write a word or a term or a phase which can substitute the following statement:
The type of account for which higher rate of interest is paid to bank depositors..
State whether the following statement is true or false :
Board resolution is not required to open the Current Account with the bank.
State whether the following statement is true or false :
Overdraft facility is granted to Savings account holders.
Complete the sentence:
Accepting deposits and lending money are the primary functions of ______
Complete the sentence:
A financial institution which receives deposits and lends money is called as __________
Complete the sentence:
A facility under which a customer can overdraw money from his account is called as ___________.
Justify the following statement:
There is a difference between Loans and Advances given by the Bank.
Distinguish between the following:
Fixed deposit account and recurring deposit account
Distinguish between the following:
Current account and saving account:
Explain the following terms/concept:
Advances
Explain the following term/concept:
Savings Deposits
Explain the following term/concept:
Bank
Correct the underlined word and rewrite the following sentence:
Accepting deposits is the secondary function of Banks.
Write the meaning of ‘Bank.’
Choose the Correct Answer.
The Local Area Banks are promoting ______
