A bank is a creditor/lender to you; it gives you a certain amount of money for a mortgage.
A bank can also give you the loan for a fixed rate of interest or floating rate of interest.
Once you take the loan after a given period of time ,your EMI's start, which are calculated in accordance with the rate of interest you have chosen.
If you pick fixed rate of interest then it's good because in potentially unstable economical times like the current ones, the rate of interest may rise, but you are safe because you already signed for a fixed ROI.
But with a floating ROI there can be trouble. Say the bank decides that it has to give a good return to its fixed depositors or lenders. It then may decide to increase the ROI and then you will have to pay according to new ROI,though when you signed up the ROI was less.
Advantages and disadvantages of a bank loan are based on comparative sources of finance. What are we comparing the above bank loan to? No loan at all? Equity investment? Factoring of receivables? Is the loan secured or unsecured? The question cannot be answered in a relevant manner without context.
Advanatages: You can borrow large amounts. Disadvantage: You have to pay back with interest.
An advanage of taking out a loan is that whatever bought that was big is already paid for kind of. But a disadvantage of a loan is that you have to pay back the bank the amount you borrowed little by little.
You might not be able to get a loan from you bank or make big expensive purchases!
In bank term loan, the firm can utilise the fund for long term projects,spanning even few years, thus fulfilling its futre growth. Whereas the rate of interest in bank term loan is bit in the higher side and sometimes remains unattractive to firms vying for bank loans.
Advantages and disadvantages of a bank loan are based on comparative sources of finance. What are we comparing the above bank loan to? No loan at all? Equity investment? Factoring of receivables? Is the loan secured or unsecured? The question cannot be answered in a relevant manner without context.
Advanatages: You can borrow large amounts. Disadvantage: You have to pay back with interest.
An advanage of taking out a loan is that whatever bought that was big is already paid for kind of. But a disadvantage of a loan is that you have to pay back the bank the amount you borrowed little by little.
You might not be able to get a loan from you bank or make big expensive purchases!
In bank term loan, the firm can utilise the fund for long term projects,spanning even few years, thus fulfilling its futre growth. Whereas the rate of interest in bank term loan is bit in the higher side and sometimes remains unattractive to firms vying for bank loans.
bank loan
when a loan is been transfered fron bank to another. . .the bank which the loan is transfered to board the loan. .
What is the difference between bank loan and bank credit?
TOBY!
A bank loan is an asset for the bank as bank receives interest and principle payments from borrower.
bank a/c dr to bank loan a/c
how to get a loan to your bank if my bank now is not DIB