Explain different types of bank loans?
The different type of loans are:-
- Secured:- A loan in which a borrower gives some asset as collateral like mortgage loan
- Unsecured:- A loan in which a borrower does not provide the assets as collateral like personal loans
- Demand:- These loans are the short term loans which do not have a fixed date of the repayment.
- Subsidized:- In these loans, the interest is reduced by the hidden subsidy
Concessional:- These loans are given at the lowest market rates.