Bill Purchase:
In Bill Purchase, the loan will be given for the full value of the draft and the interest will be recovered when the actual payment comes. This is typically the case with SIGHT drafts, where fixed maturity is not known.
For e.g, if the sight draft is presented for which the loan is created for 100% of the draft value. The money is received after 5 days then, days interest will be recovered for 5 days along with the principal.
