Continuous
Loans which are continuing having no definite repayment schedule but with a limit and expiry date are
called continuous loan. For example CC, OD etc.
Loans and advances without fixed repayment schedule but having an expiry date and a limit are called continuous loan such as CC, OD etc.
Demand
Loans which are payable on demand. Contingent or forced loan is also treated as demand loan. For
example, forced PAD, LIM, FBP etc. (i.e. without any prior approval as regular loan).
Demand loans are those loans which are repayable on demand such PAD, LIM, FBP.
Any contingent liability, if converted into loan under forced circumstances will also be treated
as Demand Loan.
Fixed Term Loan :
Loans which are payable within a fixed repayment schedule are called Term Loan.
For example, House Building, Transport Loan.
Short Term Agricultural Loans :
These short terms loans are given by banks at the instructions of Agricultural Credit Department of
Bangladesh Bank on yearly basis under agricultural loan scheme. Loans on agricultural sector repayable within 12 months are included in this category of loan. Short term micro credit will include any micro credits not exceeding Tk.25,000/- and repayable within 12 months are also treated as short term loan.
Overdraft :
Temporary financial accommodation with a certain limit granted in customer‘s SOD A/c. Interest calculated
on daily product basis.
Cash Credit :
Financial accommodation in a separate account with a certain limit and validity, secured by pledge or
hypothecation of goods.
Clean Loan/Unsecured Loan :
Loan which is granted to a borrower without obtaining any security from him is called Clean Overdraft or
Clean Loan.
What is Working Capital :
The capital left to work within running the company‘s day to day business i.e. the left over from a
company‘s paid up capital and reserves after all its fixed assets have been bought.
Micro-Credit :
Refers to small credit specially credit for the poor, agriculture, rural development and other types of credit
for poverty alleviation. NGOs in our country are engaged in financing micro-credit needs of the rural areas.
Consortium Advance :
Consortium loan means joint finance by more than one bank to the same party against a common security. The entire security remains charged to all these banks for the total advances. All the consortium banks have a Pari Passu charge on the security.
Industrial Finance :
By „industrial finance‟ we mean financing money to various industries of the country for meeting their
multifarious needs and requirements. The term ‗project‘ for our purpose means the establishment of a new
enterprise or the introduction of something new into an existing product mix.