Question

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

Answer 1

A commercial is that financial institution which accepts deposit from people and offers loan for the purpose of consumption or investment. The different types of loans offered by commercial banks are

1. Term loans

2. Bank overdraft facility

3. Letter of credit

4. Bank guarantee

5. Lease finance

6. Construction equipment loans

7. SME credit cards

8. Commercial vehicle loans