MODES OF BORROWINGSHORT TERMS:-Running Finance: It is an unsecured financing product issued by a financial institution to its customers on daily basis in order to meet their daily needs. It is a finance offerings by financial institutions against mortgages and a credit facility established for a specific time limit at variable interest rates. Running finance is nothing but the finance offerings by financial institutions against mortgages. It works under the working capital finance. Specifically, the running finance is a credit facility established for a specific time limit at variable interest rates. Bank Overdraft: An overdraft is a loan arrangement between the borrower and the bank whereby the bank extends the credit to a maximum amount against which the customer can write cheque or make withdrawals. It is the amount of money borrowed that exceeds the deposits. An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. So, such facility offered by a bank is called bank overdraft. Overdraft is one sort of offering credit by the account providers, in that withdrawals are permitted exceeding available balance of the bank account. It is nothing but an over-drawing leading to a negative balance. The situation is more common with the credit card offerings by the banks. Cash Credit: It is a short term cash loan to a company. A bank provides this type of funding but only after the required security is given to secure the loan. Once the security has been given, the business that receives the loan can continuously draw from the bank up to a certain specified amount.Loan against Pledge: A delivery of personal property to a creditor as security for a debt or for the performance of an act. Pledge is also called as pawn or security interest, is a piece of property used to secure financing. It is any physical thing with liquid value. Thus the loan taken against pledge is called as loan against pledge.Example: A lender extending a loan to a borrower for the purchase of a home will require the home as a pledge. Loan Against Hypothecation:The established practice of a borrower pledging an asset as collateral for a loan, while retaining ownership of the assets and enjoying the benefits. With hypothecation, the lender has the right to seize the asset, if the borrower cannot service the loan as stipulated by the terms in the loan agreement.Example: mortgages are the most common example of hypothecation.Loan Against Mortgage: A loan to finance the purchase of real estate, usually with specified payment periods and interest rates. The borrower (mortgagor) gives the lender (mortgagee) a lien on the property as collateral for the loan. A debt instrument, secured by the security of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments. Mortgages are used by individuals and businesses to make large real estate purchases without paying the entire value of the purchase up front. Over a period of many years, the borrower repays the loan, plus interest, until he/she eventually owns the property free and clear. It is a transfer of interest in specific immovable property. It is a type of charge related to immovable property. A security interest in a piece of real property, in exchange for the extension of loan.Discounting Commercial Papers: An unsecured short-term debt instrument issued by a corporation, typically for the financing of account receivable, inventories and meeting short-term liabilities. Maturities on commercial paper rarely range any longer than 270 days. The debt is usually issued at discount, reflecting prevailing market interest rates. A major benefit of commercial paper is that it does not need to be registered with the Securities and Exchange Commission (SEC) as long as it matures before nine months (270 days), making it a very cost-effective means of financing. The proceeds from this type of financing can only be used on current assets (inventories) and are not allowed to be used on fixed assets, such as a new plant, without SEC involvement.Public Deposits It refers to the deposits that are attained by the numerous large and small firms from the public. It is a source of fund for private and non-banking companies. The interest on these deposits is more than the interest given by banks. Public Deposit refers to the money received by a company through deposit or loan collected from public, excluding the money received in the form of shares and debentures.LONG TERMS:-Loan Against Mortgage: It is a transfer of interest in specific immovable property. It is a type of charge related to immovable property. A security interest in a piece of real property, in exchange for the extension of loan. Loan against such property is called as loan against mortgage. Loan from DFI: DFI stands for Development Finance Institution. It occupy the space between public and private investment. They are financial institution which provide finance to the private sector for investment that promote development. They are owned by the Governments of one or more developed countries.Loan from NBFCS: NBFCs stands for Non-banking Financial Company. These are financial institutions that provide banking services, but do not hold a banking license. They are not allowed to take deposits from the public. Nonetheless, all operations of these institutions are still covered under banking regulations.

Redeemable Capital Redeemable capital includes any other security or obligation not based on the interest other than an ordinary share of the company. redeemable capital may provide for adopt or include in addition to others, (a) mode and basis of repayment by the company of the amount invested in redeemable capital within a certain period of time; (b) arrangement for sharing of profit and loss; (c) Creation of a special reserve called the "participation reserve by the company in the manner provided in the agreement for the issue of participatory redeemable capital in which all providers of such capital shall participate for interim and final adjustment on the maturity date in accordance with the terms and conditions of such agreement. A company may by public offer or upon terms and conditions contained in an agreement in writing, issue to one or more scheduled banks, financial institutions or such other persons either severally, jointly or through their syndicate, any instrument in the nature of redeemable capital in any or several forms in consideration of any funds, moneys or accommodations received or to be received by the company, whether in cash or against any promise, guarantee, undertaking or indemnity issued for the benefit of the company.Redeemable Debenture: It is a document issued by a company as an evidence of its debt. It is a security issued or allotted to the investor under the seal of the company. It contains a contract for the repayment of a debt and the interest thereon at a specified rate.Redeemable TFCs: TFCs stands for Term finance Certificate. It is a corporate debt instrument issued by companies to generate long and medium terms fund. Corporate TFCs offer institutional investors, in particular provident funds, pension funds and insurance companies, with a viable high yield alternative to the bank deposits, They are also an essential complement to risk free, lower yielding Government bonds.