Commerce Paper 2, May/June 2011  
Questions: 1 2 3 4 5 6 7 8 9 10 Main
General Comments

question 8

  1. State four differences between a loan and an overdraft
  2. Explain six factors to be considered by a Bank manager before granting a loan.


Most candidates attempted this question and performed below average.  For overdraft interest is charged on the actual amount by which the account was over drawn.  Only current account holders get over draft.  Where as for loan the length of time to repay the loan and the bank’s and government policies should be considered before granting loan.


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