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Types of credit facilities
#1
credit facility of two type

1. fund based credit facilities
2. non fund based credit facilities

1. fund based credit facilities : fund based credit facilities involve the outflow of funds meaning thereby,the money of the bankers is lent to the customer . they can be generally of following types.

a) cash credit/overdrafts b) term loans/demand loans
c) bill finance


2. non fund based credit facilities : in this type of credit facility the bank's funds are not directly lent to the customer and they include

a) bank guarantee b) letter of credit facility
c) acceptance facility
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