The Supreme Court held, by a 7 to 2 vote, that an interest-free demand loan
resulted in a series of gifts with the passage of time measured by the interest foregone by the lender.
For the purpose determining whether the employee has paid an adequate rate of interest loans are generally classified as either demand loans
or term loans.
For demand loans
, the AFR is the short-term semiannual rate.
. A demand loan
is a loan that is payable in full at any time upon the demand of the lender, or a loan with an indefinite maturity.
With respect to a demand loan
, the interest rate will change each year as the applicable federal rates change.
Some of the most common types of debt financing available to the entrepreneur include demand loans
, lines of credit, bridge loans, conditional sales purchases and floor financing.
The purchase price for the acquisition was paid with USD 0.45m in cash, a demand loan
of USD 1.35m from a Canadian Schedule 1 Bank, and a USD 0.30m promissory note issued to the vendor.
21 December 2011 - CRISIL today gave a AAA rating with a "stable" outlook to the INR2.5bn (USD48m/EUR36m) working capital demand loan
of Indian lignite mines and thermal power plants operator Neyveli Lignite Corporation Ltd (BOM:513683).
Under the final regulations, a demand loan
provides for sufficient interest if, in each calendar year, the interest rate, compounded annually, is no lower than the blended annual rate for the year (published in the July Internal Revenue Bulletin).
Police suspect that, in addition to the strict quota system, using impersonal means such as a telephone to demand loan
repayment facilitated the increasingly intimidating nature of the loan-collection practices, the sources said.
The frauds were classified and analysed for 13 sectors including gem and jewellery, manufacturing and industry, agro, media, aviation, service and project, discounting of cheques, trading, information technology, export business, fixed deposits, demand loan
and letter of comfort.
M2 EQUITYBITES-July 11, 2017-Flyht amends operating demand loan