TRADING
BANK
Trading banks are
not a large source of housing finance but are often able to assist
with second mortgages or personal loans. Trading banks are important
lenders for business, commerce, and industry. Overdraft
finance is the most important method of financing businesses.
See:
real
estate finance
For commercial
development the following criteria is used to assess a loan
application:
-
merits of the particular proposition
-
value of the bank/customer relationship
The
interest rate for smaller loans is fixed but negotiable for large
loans.