Commercial paper an instrument of low cost borrowing

Due to intense competition, instable market conditions, instable market conditions, Indian companies are trying to work on low cost model and for that trying to find the cheaper sources of funds to meet their short term capital requirement at cheap interest rate. Commercial paper is one of the such instrument. In this paper author has tried to give an analysis by taking different example and tried to make the people to understand how commercial papers are a low cost source of capital as compared to others.