Page 3 - Microsoft Word - HA code - 241507010121
P. 3
interest and repayment of debt after specific period.
Public Deposits: When an entrepreneur invests the general public to deposit their savings with
his company, for a period not exceeding 36 months with some rate of interest.
Overdraft: A temporary arrangement in the form of a permission granted to the customers to
withdraw more than the amount standing to his account.
Discounting of bills: It is an arrangement, where the bank encashes the customer’s bills before
maturity date.
Loans and Advances: A loan is a lump sum advance made for a specified period by bank or other
financial institutions with certain rate of interest.
Grants: When government makes financial assistance available to an entrepreneur encourage
enterprise, (tax revenue through payers).
