Financial Awareness - Risk, Stability & Emerging Finance
Which of the following loans is repayable immediately upon the bank's demand and usually does not have a fixed repayment schedule?
Which of the following loans is repayable immediately upon the bank's demand and usually does not have a fixed repayment schedule?
easy Q2 of 15
Step-by-Step Solution
Step 1: Understand loan repayment terms
Demand Loan is characterized by repayment on demand without a fixed schedule.Step 2: Compare with other loans
Term Loan has fixed tenure, Cash Credit and Overdraft are working capital facilities with different repayment norms.Final Answer:
Demand Loan → Option CQuick Check:
Demand Loan = repayable on bank's demand, no fixed schedule ✅
Quick Trick: Demand Loan = repay whenever bank demands.
Common Mistakes:
- Mistaking Demand Loan for Term Loan due to loan nature.
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