Fundsourceindia03 Aug, 2023Finance
Every business requires capital at various stages for running & growing the business. So besides promoter capital businesses raise capital in the form of loans from the banks & NBFC. Businesses make a profit by infusing these loans in their business model in the shape of working capital limits or term loans for developing infrastructure or purchasing machinery. Banks also make a profit by selling loans to these businesses, so loans also called assets for the banks earn interest/profit for the bank.
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