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⟩ Explain what is fund based lending? What are the various forms in which fund based lending may be made by banks?

Fund based lending, where the lending bank commits the physical outflow of funds. The various forms in which fund based lending may be made by banks:

1) Loan

2) Overdraft

3) Cash Credit

4) Bills Purchased/Discounted

5) Working Capital Term Loans

6) Packing Credit

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