Loan against property is a financing arrangement where bank or financial institutions provide funds after mortgaging our property.

 This kind of financing arrangement belongs to the secured loan category where borrower gives a guarantee by using his property as security. Bank usually finance 40 to 60% of mortgage value.

Project financing is a kind of financing where banks or financial institutions fund long term infrastructure or industrial projects.

Project financing is a loan structure that relies primarily on the project’s cash flow for repayment, with the project’s assets, rights and interest held as secondary securities or collateral.

Overdraft is a limit that is extended in current account allowing an account holder to withdraw any amount up to the sanction limit. Interest is charged on the amount used on daily outstanding basis.

Cash credit is an arrangement under which a customer of a bank or financial institutions is allowed an advance up to certain limit against credit granted by bank.

SME finance is the funding of small and medium-sized enterprises, and represents a major function of the general business finance market.

This kind of financing is done through bank loans and overdrafts; leasing and hire-purchase arrangements; equity/corporate bond issues; venture capital or private equity; asset-based finance such as factoring and invoice discounting and government funding in the form of grants or loans.

A mortgage loan is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged.

The loan is “secured” on the borrower’s property through a process known as mortgage origination.