ASSETS PRODUCTS OF BANKS

Types of Loans / Advances /Credit Facilities

Granted to needy members of public ---Generally for business/Productive purposes

A. Fund Based
Cash Credit-- -Running Account—Bank allows the borrower to draw funds upto a certain limit
Can withdraw as and when required, Interest is charged on the amount drawn
Overdraft-----In current accounts, Temporary arrangement to draw more than balance I credit
Limit can be granted on security—FD,NSCs, Shares etc
Demad Loan---Short Term—1 yr to 3 yr—One time lump sum granted/Interest on whole
amount
Repayable on demand, Can be granted against securities—FDs/NSCs,/Gold etc
Term Loan-----Long Term—More Than 3 yrs—One time lump sum granted—for purchase of
Assets, Home Loan , car loan, Mortgage Loan etc Repayable in instalments
Bills Finaning/ Discounting/Purchasing---Goods are in transit and customer needs funds

B. Non Fund Based--- Banks do not part with the funds immediately but are liable to pay
on the failure of the borrower to meet obligation
Letters of credit
Bank Guarantees
Bills Acceptance
Underwriting/Credit Guarantee

Consumer Loans/ Consumer Credit---- For public/salaried persons/Business men

Personal Loan
Car Loan
Housing Loan
Motgag Loan