Explain the types of bank lending.
Answers
Answer:
Commercial bank provide various services like collecting cheques, bills of exchange, remitting money from one to another place, etc. Commerical banks are of 3 types' i.e. public sector banks, private sector banks, and foreign banks.
Answer:
Banks in the Philippines typically offer loans in two categories: (1) consumer loans, and (2) commercial loans.
Explanation:
A consumer loan is a type of loan available to individuals so that they can finance specific types of expenses, e.g. the purchase of a real estate property, the acquisition of a vehicle, and the like. The bank acts a creditor for loans that are either secured (backed by collateral, like the borrower’s existent assets) or unsecured (without need for collateral). On the other hand, a commercial loan is a type of loan that is used exclusively for business purposes. Business entities can opt to apply for loans in order to garner capital for their day-to-day operations, to keep company bills paid on time, or to fund the purchase of equipment for facilities, among others. Banks take on bigger risks from commercial loans than consumer loans, so you can expect your bank to be quite stringent on your business’s eligibility and documentation requirements if you are applying for a commercial loan.