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18 - Banking -- Demand loans and Term Loans

Banking -- Demand loans and Term Loans

3 -- Demand Loans

Demand loans are short term loans (typically no more than 180 days) that are atypical in that they do not have fixed dates for repayment and carry a floating interest rate which varies according to the prime rate. They can be "called" for repayment by the lending institution at any time. Demand loans may be unsecured or secured.

4 -- Term Loans (Interest-only Loans)

It is a loan in which, for a set term, the borrower pays only the...

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Related topics : bank loan short term / short term loan lenders / mortgage loan rate of interest / unsecured loans canada

17 - Banking -- Lines of Credit and Overdrafts

Banking -- Lines of Credit and Overdrafts

1 -- Line of credit

It is effectively a bank account that can readily be tapped at the borrower's discretion. Interest is paid only on money actually withdrawn. Lines of credit can be secured by collateral or unsecured. A line of credit may take several forms, such as overdraft protection, demand loan, and term loan.

2 -- Overdraft

An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero.

Plans...

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Related topics : line of credit loan rates