Financial matters

The loan agreement provides a legal contract between the borrower and the bank. It spells out in detail the terms of the loan. This normally specifies the amount(s) to be drawn down, the interest rate that will be charged and sets out a schedule of the dates when interest payments and principal repayments are due. [...]

These include state-sponsored organizations that specialize in guaranteeing loans for a particular type of borrower such as small companies or cooperatives. Some specialist public sector banks (such as national import–export banks) also provide guarantees. These guarantees are useful in helping the guarantor achieve objectives of funneling credit to selected borrowers or facilitate exports without having [...]