A thing that is borrowed; especially a sum of money that is expected to be paid back with interest.

A COMMERCIAL BANK (OR BUSINESS BANK) IS A TYPE OF FINANCIAL INSTITUTION AND INTERMEDIARY. IT IS A BANK THAT PROVIDES TRANSACTIONAL, SAVINGS, AND MONEY MARKET ACCOUNTS AND THAT ACCEPTS TIME DEPOSITS. EG: SBI, ICICI,HDFC,CITIBANK. ETC.

Kind of loans granted by commercial banks

Secured loan:
You need to put up an asset as collateral for this loan such as a car

or any real estate that you possess.

Mortgage loan:
A mortgage loan is a very common type of debt instrument, used

to purchase real estate. Commercial banks, however, are given security a lien on the title to the house - until the mortgage is paid off in full.
Unsecured loan:
Unsecured Loans are monetary loans that are not secured against

the borrower's assets (i.e., no collateral is involved)

Commercial Loans:
Overdrafts
Ideal for managing your day-to-day cash flows smoothly Added benefit of interest being charged only on the amount utilized

Trade Finance
Export Finance (Pre & Post Shipment) and Import Finance (Buyers Credit) LIBOR denominated interest rates to make your business globally competitive

Commercial Loans:
Dropline Overdrafts
An Overdraft facility where the line amount reduces by a fixed amount every month Unique combination of Term Loan and Overdraft Interest charged only on the amount utilised

Citibank India
Base Rate* effective as of August 05, 2011, is 9.75% per annum

ICICI
Type of credit facility Commercial Vehicle Loans Rate of interest 12.50% to 15.00% Processing fee 0.50% of gross loan amount

Construction Equipment Loans

Two Wheeler Loans

11.50% to 13.75%
12.50% to 16.50%

0.25% of gross loan amount

0.25% of gross loan amount

References:
WEB-SITES: http://www.smallbusinessbible.org/commercial-bank-loans.html http://kalyan-city.blogspot.in/2010/09/different-forms-of-advancesby.html http://en.wikipedia.org/wiki/Commercial_bank http://wimbledonmashow.com/types-of-commercial-loans-offered-bya-bank-or-financial-institution/ http://www.economywatch.com/banks/commercial-banks/ https://www.sbi.co.in/ https://www.online.citibank.co.in/ http://www.hdfcbank.com/personal/default.htm http://www.icicibank.com/

BOOKS: Financial Management - Prasanna Chandra, TMH publishers latest edition Projects- Prasanna Chandra, , TMH publishers Third edition

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