Social Sciences, asked by Shashidharreddy8005, 11 months ago

Difference between fee base vs fund based services

Answers

Answered by purvivashisht044
6

A fund based financial service involves credit offered by banks in the form of loans, overdrafts and other cash transactions. In a non-fund based financial service the bank does not deal with funds or cash transactions. Some examples of this type of service are bonds, letters of guarantee and letters of credit.

A bank or NBFC offers two types of products: fee-based and fund-based. ... — Loans are fund-based products. To make a loan, a bank or NBFC has to borrow money and ensure that the cost of borrowing is less than the cost of lending. When it sells a mutual fund or insurance product, it earns a fee or commission for doing so.

plz mark as brain list answer for me as i helped if a little one only

Similar questions