how loan is different from debenture?
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Answer Posted / arun kumar
loan is an agreement which is done when any compay or
individual borrows some money for doing business.it is long
term liability for company.in this case company needs money
from bank.so bank charges interest rate what it wants.
debenture is also a long term
liability for a company but only difference is that in this
case bank comes to company and gives loan at the desired
rate of interest fixed by company itself.ie in the case of
debenture company impose decision on bank.
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