Loan And Demand Loan Against KVP/IV.
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Demand loan, often termed as Working Capital Demand Loan (WCDL) is basically being ready to repay the loan on demand of the lenders. In a demand loan, the financiers or lenders can ask for the lent money to be repaid by the borrower in a relatively shorter duration. Also, the borrowers have the liberty to repay the amount anytime without facing any pre-payment charges. Unlike term loan where loans are sanctioned on a fixed tenure and repayment on installment, a demand loan is a form of short-term finance with no fixed tenure.
There are several purposes to fulfil that an individual or business needs demand loan. The common purposes for opting for a demand loan are as follows: Short-term funding for start-up businesses To meet daily and temporary working capital requirements Used for raw material purchase Paying office space rent and salaries Purchasing small assets like cars, farm animals or equipment
Purpose of Demand Loan
