Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
The very term commercial bank refers to financial institutions that are being designed to accept deposits and offer to check account services and various loans to the public. A commercial bank also provides certificates of deposits and savings to common individuals. Other than that, commercial banks are those banks that make money by providing money to the public and earning from the interest that is being charged. In a nutshell, a commercial bank is one such institution that basically serves all sorts of commercial purposes.
There is no shadow of a doubt that all projects and businesses require some sort of funding. This is one such reality that has no such diversities; that is, to carry out a business, one requires funding. Commercial banks are hence designed to fulfill such needs. Thus, a real estate business requires funds for the inception of a certain project. Commercial banks are those which are to provide loans to the real estate company to help it run for a longer span.
So if you are wondering how the real estate industry acquires funds? Well, that is altogether a different thing where commercial banks play a very vital role. It is the bank that allows the real estate industry to invest in carrying out the project. The bank reviews the project to understand the range of profiteering, and after all the assessment is done, the bank provides loans to the real estate sector. This is more like a symbiotic relationship between the bank and the real estate industry following to be there for each other. Hence it can be blithely conceded that the commercial banks are the institution that allows the real estate industry to thrive on its own.
