What are the types of business loan?
There are two types of business loan.
2-Loan for Business
Professional loan is given to them, such as Doctor, Chartered Accountant, Lawyer.
Loan for business is given to a person who is the owner of a sole proprietorship company or partnership firm, private limited company etc. can also apply.
You can categorize business loans into 3 parts.
2-Working Capital Loan
Overdraft means that the bank allows the customer to borrow a specified amount. Interest is charged on this loan.
Working capital loans are taken out to finance the daily operations of a company. This loan is not used to buy long-term assets or investments.
Term loans are mainly given for land, machinery and equipment or commercial vehicles,
working capital for business, etc.
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