December 1, 2011 @ 2:58 pm |
Demand bank loans are those which do not have any fixed date of maturity and hence offer a higher degree of flexibility when compared to most other types of loans. Since these loans do not have an irregular repayment schedule, both the lender and the borrower benefit from this scheme. If the economy and the current financial trend are in good shape, it is beneficial for the borrower who is entitled to an irregular repayment pattern via a relaxed schedule. If the economy is on a downward spiral or rather is just about to begin a downward spiral and if the lender is able to gauge this from thorough analysis, the lender can ensure that they demand the loan at that very instant with a notice period as short as 24 hours making sure that they minimize the potential losses. The interest changes coupled with financial changes make sure that the lender gets the most from the outstanding amount. This loan structure which is also called a call loan at times is best functional when the borrower and the lender have a very good rapport and are in good accord financially.
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