The second primary function of a commercial bank is to lend money. The banks do not keep the deposited money of the people useless in their safes. They advance it to those who need it for trade and industry. In short, banks borrow money in order to lend. Commercial bank provides different types of loans. Like short-term loans, Long-term loan, medium-term loan, demand loan and many other loans. These loans are divided into two major parts. 1. According to term 2. According to issue