Saturday, April 29, 2017

What is Difference between Loans & Advance ?

Answer:


Loan
Ø  A credit made in lump sum for a specific period and repaid by specific repayment schedule. Once repayment is made in part or full loan can’t be withdrawn by the borrower. For example. Hire Purchase
Advance
Ø  Borrower can withdraw as many times as he wants upto the limit within the validity. For example, CC(Hypo).

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