Except which one of the following, others are known as Non Fund based facilities

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Letters of Credit
B	Bank Guarantees
C	SBLC
D	Cash Credit

Explanation:

Detailed explanation-1: -The non-fund based facilities like issuance of letter of guarantee, letter of credit wherein banks get fee income and there is no immediate outflow of funds from the bank.

Detailed explanation-2: -Fund-based working capital includes funding such as: Short term loans. Cash credit or business overdrafts. Term loans for fixed assets.

Detailed explanation-3: -Non-Fund Based Credit If the payment is not received by the seller within pre-agreed time, The bank pays the amount to the seller. For e.g. Bank Guarantee, Buyer Credit, Letter of Credit, Supplier Credit.

Detailed explanation-4: -Typical examples of fund based facilities are term loan, cash credit and overdraft and that of non-fund based facilities are letters of credit, bank guarantees, letter of comfort, etc.

There is 1 question to complete.