A type of long-term loan granted to companies with fixed interest rate as well as with redeemable and irredeemable features is referred to as projects.

A type of long-term loan granted to companies with fixed interest rate as well as with redeemable and irredeemable features is referred to as projects.

Answer Details

A type of long-term loan granted to companies with a fixed interest rate, redeemable and irredeemable features is referred to as a "debenture." A debenture is a type of debt security, similar to a bond, that is issued by a company to raise capital. The company promises to pay a fixed rate of interest to the holders of the debenture, and the loan is typically repayable after a specified period of time. The difference between a debenture and a bond is that a debenture is not backed by any specific assets of the company, while a bond is backed by specific assets. An overdraft is a type of short-term loan, while a term loan is a type of loan that is repayable in installments over a specified period of time.