General Knowledge : Banking Awareness : Discussion


Q.

As per newspaper report, one of the major public sector banks sold out its RS. 500 Cr. loan to IIFCL(India Infrastructure Finance Company Limited). This type of buying and selling of loans in the banking sector is popularly known as,

A. Teaser rate financing.
B. Take-out financing.
C. Infrastructure financing.
D. Development financing.

Answer: Option B

Explanation:

Take-out financing is a kind of long-term financing by the banks. Like 15-20 years. It is also called as 'Take-out Loan'. Usually, Take-out financing is used for real property and commercial purposes.


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