Loans from Financial Institutions

Financial institutions such as Commercial banks, Life Insurance Corporation, Industrial Finance Corporation of India, State Financial Corporation(LIC), State Industrial Development Corporation(SIDC), and Industrial Development Bank of India (IDBI)etc. provide short term medium term and long term loans. This source of finance is more suitable t meet the medium term demands of working capital. Interest is charged on such loans at a fixed rate and the amount of the loan is to be repaid by way of installments in a number of years.