21/07/2021 · 3. Period of payment in loans and advances. The period of repayment is a crucial difference between loans and advances. Various loan products such as educational loans, home loans and personal loans are inclined to have longer repayment tenure. This is due to the nature of the credit makes loans and advances to traders, businessmen, and industrialists. Moreover nature of credit may differ in terms of security requirement, disbursement provision, terms and conditions etc. The bankers have to keep in mind that lending is for the best interest of the community and lending should be directed to productive sectors ;· Lending of funds to individuals, traders, businessmen and industrial enterprises, is one of the important activities of commercial banks. Interest earns on these loans and advances are the major source of income of the banks. Interest given on deposits is lower than the interest received on such loans and ;· Loans and advances. 1. ByDheeraj. 2. A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or 26/07/2018 · The following are the major differences between loans and advances: Money lent by an entity to another entity for specific purposes is known as Loan. Money provided by the bank to entities for fulfilling their short term requirements is known as Advances. The loan is a kind of debt while Advances are credit facility granted to customers by Of Loans And Advances In Commercial BanksDifference Between Loans and Advances (with Comparison Difference Between Loans and Advances (with Comparison Loans and Advance | Banking Guide for Bankers13/05/2020 · 31. Classified loans and advances mean: (A) Loans and advances which are overdue and sticky (B) Loans and advances the recovery of which is uncertain and against which provision is to be made (C) Loans and advances which are considered as loss 32. Provision for Bad debts is made out of (A) Income (B) Profit (C) Reserve 33. A Bank can sanction loan to a single party upto a maximum …
