A loan is the provision of money temporarily to a borrower, (usually at interest). It is applied to enable clients meet their working capital requirements, fund specific projects etc. Loans can be classified according to their maturity, collateral and other special features.

They are however broadly classified into

• Short-term loans (loans and advances with 1 – 12 months tenor, 3 months rolling over)
• Term Loans (loans and advances with over 12 months tenor)