What is non-fund based lending?

What is non-fund based lending?


Non fund based lending, where the lending bank does not commit any physical outflow of funds. The funds position of the lending bank remains intact.

The non-funding based lending can be maid in two forms:

1) Bank Guarantees
2) Letter of Credit
What are bank guarantees? How do they work?
Bank Guarantee is a non fund based lending given by the bank to ensure that the liabilities of a debtor will be met….
What is letter of credit? What are the different parties involved in a LC?
Letter of Credit is a non fund based lending which is very regularly found in international trade….
What are the different types of LC?
Different types of Letter of Credit: 1) Revocable Letter of Credit 2) Irrevocable Letter of Credit…
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Discussion Board
NON FUND BASED
what is the exact meaning of NON FUND BASED LOAN?
pengwish 07-11-2016