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Loan financing


Loan financing is the important mode of finance raised by the company. Loan finance may be divided into two types:

[Post Image Courtesy of Njaj at FreeDigitalPhotos.net]

(a) Long-Term Sources

(b) Short-Term Sources

Loan finance can be raised through the following important institutions:

  • Commercial Banks
  • Development Banks
  • Specialist Institutions

Financial Institutions:

With the effect of the industrial revaluation, the government established nation wide and state wise financial industries to provide long-term financial assistance to industrial concerns in the country. Financial institutions play a key role in the field of industrial development and they are meeting the financial requirements of the business concern. IFCI, ICICI, IDBI, SFC, EXIM Bank, ECGC are the famous financial institutions in the country.

About Author Mohamed Abu 'l-Gharaniq

when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries.

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