JAIIB LRAB Unit 9 - Types of Credit Facilities

JAIIB LRAB Unit 9 - Types of Credit Facilities (Year: 2019)


Types of Credit Facilities


Fund Based Credit Facilities

  • Cash Credits / Overdrafts – Cash credit /Overdraft is an arrangement by which a banker allows his customer to borrow money up to a certain limit.
  • Term Loans -
  • Bill Finance

 

Non-Fund based Credit Facilities

  • Bank Guarantee
  • Letter of Credit Facility

Rule in Clayton’s Case
Discharge of debit items by subsequent credits was enunciated in a case called Clayton’s case.

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