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How can we raise funds through debt financing?

Zerodha (Flat Rs 20 Per Trade)

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Debt financing involves borrowing funds from lenders in return of interest payment against the borrowed amount. The borrowed amount is required to be repaid after specific agreed tenure.

The popular debt financing sources include:

  • Bank loans.
  • Loans from non-banking finance corporations.
  • Issuance of bonds and debentures.
  • Peer to peer lending.
  • Loan from the government.