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Capital is nothing but the initial corpus of money that we use to start a business establishment. Own capital refers to the money that is our own, that we gather from our savings, family members, our assets etc. We own the capital fully and we would own the business as well entirely. Loan capital refers to the process where you loan money from others usually public investors (through stocks and bonds), banks etc to start the business. In case of stock investors they would share the ownership in the company. In case of bond investors & banks they would get regular interest payout from us and a full settlement at the end of the loan tenure.

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Q: Discuss concept of own capital and loan capital?
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