The correct answer is Loans. Loans refer to money lent to a borrower for short-term, long-term, or for an unspecified period (a working capital facility which is renewed every year). Banks utilize a major portion of deposits for loans. Loan carries a specific rate of interest as agreed between the lender and the borrower and the terms of the agreement. A loan may be for a general-purpose (say working capital) or a specific purpose (equipment loan, export packing credit, car loan etc. Additional InformationTermMeaningGuaranteeA guarantee means giving something as security. A bank guarantee is when a bank offers surety and guarantees for different business obligations on behalf of their customers within certain regulations. InterestInterest, in finance and economics, is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. CollateralsIn lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.