Working Capital Management Question:
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Explain what is fund based lending? What are the various forms in which fund based lending may be made by banks?
Answer:
Fund based lending, where the lending bank commits the physical outflow of funds. The various forms in which fund based lending may be made by banks:
1) Loan
2) Overdraft
3) Cash Credit
4) Bills Purchased/Discounted
5) Working Capital Term Loans
6) Packing Credit
1) Loan
2) Overdraft
3) Cash Credit
4) Bills Purchased/Discounted
5) Working Capital Term Loans
6) Packing Credit
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