Bank impose lending limits to avoid funding to speculative purpose and restrict the lending/funding to the business requirement or genuine requirement of the borrower. Over financing is always likely to be misutilised..
The difference between the commercial banks and micro finance banks is in their functions and ability. The main difference is in the lending limits with micro finance banks having lower limits.
Banks lending money to other banks.
Banks impose limits on savings account transactions to ensure the stability of the financial system and to prevent misuse of the account for frequent or excessive withdrawals.
Consortium Lending is that type of lending in which two or more banks come together to finance the big projects requiring huge amount of money. Consortium lending is usually done by banks to distribute the risks among the group of banks ,it is also used by smaller banks to use as an opportunity to be a part of the big project financing and to gain expertise in this area. Big banks by resorting to consortium lending not only saves their prospective customers but also builds good relations with other banks.
17 banks
Banks source the funds they use for lending purposes from customer deposits, interbank borrowing, and capital reserves.
There are multiple major banks that offer home loan lending. A few of the national banks that are located in most states are: Bank of America, US Bank, or Wells Fargo.
Fund-based exposure is actual lending from public banks. Non-fund based exposure is credit extended by private banks with no actual lending.
Fund-based exposure is actual lending from public banks. Non-fund based exposure is credit extended by private banks with no actual lending.
cause
The lending of money.
is privet banks comes in money lending act criteria