Difference between Advances and Loans

It is not clear in what connotation the query is raised!

You may go thru:
Companies Act, 2013;S;180,185,186

It shall be better to talk in confidence to a CA/CS.

You can also post at:

https://www.caclubindia.com/

Money provided by the bank to entities for fulfilling their short term requirements is known as Advances. Loan is a kind of debt while Advances are credit facility granted to customers by banks. ... Loans can be secured or unsecured whereasAdvances are generally secured by asset or by guarantee from a surety.

The following are the major differences between loans and advances:

1. Money lent by an entity to another entity for specific purposes is known as Loan. Money provided by the bank to entities for fulfilling their short term requirements is known as Advances.
2. The loan is a kind of debt while Advances are credit facility granted to customers by banks.
3. Loans are provided for a long duration which is just opposite in the case of Advances.
4. There are many legal formalities in the case of loans as compared to advances.
5. Loans can be secured or unsecured whereas Advances are secured by an asset or by a guarantee from a surety.