Difference Between Commercial Bank and Industrial Bank

1. Nature of Banking ↓

Commercial Bank is a bank which primarily provides financial facilities to commercial activities.

Industrial Bank is a bank which primarily provides financial facilities to industrial or productive activities.

2. Types of Loans Offered ↓

Commercial Banks generally provides short-term loans for meeting working capital needs.

Industrial Banks generally provides long-term loans for meeting fixed capital needs.

3. Financing Period ↓

Commercial Banks provides finance for a short duration.

Industrial Banks provides finance for a longer time period like 15 or 20 years.

4. Other Services Offered ↓

Commercial Banks provides agency and general utility services to its clients.

Industrial Banks provides underwriting promotional and consultancy services to its clients.