Borrow example sentences
The word 'debenture' has been derived from a Latin word 'debere' which means to borrow.Thus, the SHGs help borrowers overcome the problem of lack of collateral.The rich households are availing cheap credit from formal lenders whereas the poor households have to pay a heavy price for borrowing! What does all this suggest? First, the formal sector still meets only about half of the total credit needs of the rural people.The long-term sources fulfil the financial requirements of an enterprise for a period exceeding 5 years and include sources such as shares and debentures, long-term borrowings and loans from financial institutions.The borrower is required to provide some security or create a charge on the assets of the firm before a loan is sanctioned by a commercial bank.The debenture issued by a company is an acknowledgment that the company has borrowed a certain amount of money, which it promises to repay at a future date.A fixed rate of interest is paid by the borrowers on such funds.Irredeemable debentures are also known as Perpetual Debentures because the company does not given any undertaking for the repayment of money borrowed by issuing such debentures.Many poor pastoralists, on the other hand, borrowed money from moneylenders to survive.Generally, borrowed funds are provided on the security of some fixed assets.They may vary depending on the nature of the lender and the borrower.The fiscal deficit will have to be financed through borrowing.The rate of interest charged by a bank depends upon factors including the characteristics of the borrowing firm and the level of interest rates in the economy.Those who borrowed found it difficult to pay back their debts.Obtaining loan from financial institutions increases the goodwill of the borrowing company in the capital market.
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