Promissory note loan

What is a promissory note loan?

A promissory note loan is a loan for which a promissory bill is issued. The loans against promissory bills are issued by banks, insurance companies or other capital collection agencies such as pension funds to private companies or public institutions. The promissory note loan is similar in character to a bond; however, unlike a bond, promissory bills are not traded on the stock exchange.

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