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प्रश्न
Justify the following statement:
There is a difference between Loans and Advances given by the Bank.
उत्तर
The difference between Loans and Advances:
(1) A loan is an arrangement under which a certain amount is advanced to the borrower for a certain fixed period. An advance is a credit facility provided by the bank to its customers. Loans are granted for a longer period of time, but advances are usually given for a shorter period of time.
(2) The purpose of granting loan is to meet long term financial needs of the business organisations such as working capital need, fund for growth and development, funds for modernisation, etc. The purpose of granting advances is to meet the day-today financial requirements of a business.
(3) In the case of loan interest is charged by the bank on the entire amount sanctioned and credited to the account of the borrower. However, in case of advances bank charges interest only on the amount actually withdrawn from the bank and not on the amount sanctioned.
(4) The rate of interest charged on the loan depends on the period of time for which loan is given. Usually it is a little higher than the rate of interest charged on the advances.
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संबंधित प्रश्न
Write a word or a term or a phase which can substitute the following statement:
A slip used for depositing cash and cheque in the Bank account.
Write a word or a term or a phase which can substitute the following statement:
Permission to withdraw excess amount from Current Account.
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.
Resolution for opening Bank Account is passed in the _________ meeting.
Select the correct answer from the options given below and rewrite the statement.
__________ is used for depositing cash into a bank account.
Select the correct answer from the options given below and rewrite the statement.
Generally Interest is not paid on ___________ deposit account
Write a word or a term or a phase which can substitute the following statement:
The slip which is used for withdrawing money from Savings 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 :
Board resolution is not required to open the Current Account with the bank.
State whether the following statement is true or false :
Banks grant long term loans only.
Complete the sentence:
A facility under which a customer can overdraw money from his account is called as ___________.
Distinguish between the following:
Fixed deposit account and recurring deposit account
Distinguish between the following:
Current account and saving account:
Explain the following term/concept:
Current deposits
Explain the following term/concept:
Time Deposits.
Explain the following term/concept:
Loans
Choose the Correct Answer.
Bankers are not only dealers of money but also leaders in ______
Choose the Correct Answer.
The Local Area Banks are promoting ______
