Question

What are the different types of loans provided by commercial banks?

Answer 1

Here's a look at how lenders generally structure loans, with common variations. Line-of-credit loans. The most useful type of loan for small-business owners is the line-of-credit loan. Installment loans. Balloon loans. Interim loans. Secured and unsecured loans. Letter of credit. Other loans.

Answer 2

The different types of loans provided by commercial banks:

1. Line-of-credit loans: These loans are most useful for small-business holders

2. Installment loans: Installment loans are paid return with equal monthly amounts managing both interest and principal.

3. Balloon loans.  

4. Interim loans.  

5. Unsecured and Secured loans.  

6. Letter of credit.  

7. Other loans.

Explanation:

• Commercial Banks are banking organizations that receive deposits and allow short term loans for people and promote about that to their customers.
• In addition, to allow short-term loans, commercial banks also allow long-term and medium-term loans to business enterprises.
• These days some of the commercial banks are also giving housing loans on a long-term basis to individuals.

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