What is defaulter?
How to avoid being defaulter?
Defaulter is a person who fails to meet his commitments. If you take a personal loan and you need to pay EMI and fail to pay the same, you are a defaulter.
This need not be individuals, Corporates who do not pay or meet their commitment as per contract is a defaulter.
Does taking a margin is one type of loan???
Yes. It is.
A Loan is defined as a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.
Now within loan there are various types, few which I can remember are
Overdraft - Something similar to loan where customer is granted a limit and he can keep using it as long as he repays the same.
Term Loan - these are long term loans given for construction etc. The difference is what you repay you cannot redraw
Margin lending is a flexible line of credit that allows you to borrow against the securities you already hold in your brokerage account.
Trade related loans (Trade Finance facilities)
How to avoid Margin??
Fund whatever you wish to fund yourself.