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Q: What is Demand loan.
A:Loan with or without a fixed maturity date, but which can be recalled anytime (often on a 24-hour notice) by the lender and must be paid in full on the date of demand. Also, the borrower can pay off a demand loan at any time without incurring pre payment penalties. In india normally this is granted against securities like bank deposits,lic policy,nsc, gold jewellery etc.
Q:What is Term Loan.
A:A loan from a bank for a specific amount that has a specified repayment Period(term) and a floating or fixed interest rate. Term loans may have repayment period between one and 30years.
Q:What is Overdraft.
A:An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation the account is said to be "overdrawn".
Q:What is cash credit limit.
A: In Cash Credit facility an amount of loan is given to the borrower for his working capital needs.A customer can draw upto a limit that depends upon Drawing Power calculated based on value of security.
Q: What is Pre Shipment credit (Packing Credit).
A:Pre-shipment / Packing Credit also known as ‘Packing credit’ is a loan/ advance granted to an exporter for financing the purchase, processing, manufacturing or packing of goods prior to shipment. Packing credit can also be extended as working capital assistance to meet expenses such as wages, utility payments, travel expenses etc; to companies engaged in export or services. Packing credit is sanctioned/granted on the basis of letter of credit or a confirmed and irrevocable order for the export of goods / services from India or any other evidence of an order for export from India.
Q: What is Post Shipment credit.
A:'Post-shipment Credit' means any loan or advance granted or any other credit provided by a bank to an exporter of goods / services from India from the date of extending credit after shipment of goods / rendering of services to the date of realisation of export proceeds as per the period of realization prescribed by Reserve Bank of India (RBI) and includes any loan or advance granted to an exporter, in consideration of, or on the security of any duty drawback allowed by the Government from time to time. As per extant guidelines of RBI, the period prescribed for realisation of export proceeds is 12 months from the date of shipment.

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