Banking News

Author Archives: Surendra Naik

  • CLCSS subsidy scheme for micro and small enterprises

    CLCSS subsidy scheme for micro and small enterprises

    The Credit Linked Capital Subsidy Scheme (CLCSS) is a scheme of subsidy offered to manufacturers (Micro & Small Enterprise) for technology up gradations. If you are a MSE (Micro & Small Enterprise) manufacturer and if you want to modernize your equipment/plant/machineries, you may get capital subsidy of up to…

  • What is Profit Volume ratio (P/V ratio)?

    A company determines the selling price of its products after calculating of the fixed cost, variable cost involved in productions and sales of the items produced by it. There are three other important workings in the process viz. profit volume ratio, breakeven point and margin of safety. Let us…

  • What is Sinking Fund?

    Sinking fund is also known as depreciation fund.  Sinking Fund is a fund into which a company sets aside its revenue over a period of time, in order to fund a future capital expense or used to replace the asset at the end of its useful life or for…

  • What is Amortization of loan/debt?

    Amortization is the process of paying off loan amount over a period with regular equal payment.  Now a day, it is common that banks fix number of equated monthly installments (EMI) for Home loans, consumer loans etc. for repayment of loan granted by them typically amortizing their loan. How…

  • What is EMI and how to calculate EMI?

    EMI is acronym to an equated monthly installment (EMI). It is a fixed amount payable by a borrower to a lender at each calendar month at a stated date. Under this system the principal and interest thereon is repaid through equal monthly interest over the fixed tenure of the…

  • How to calculate simple Interest?

    When a lender grants loan to a borrower, he charges fee (interest) on money lent. The interest payable by the borrower may be simple interest or compound interest. Simple interest means interest charged at flat rate only on the principal amount. In the other words the interest will not…

  • How to calculate compound Interest?

    The concept of compound interest or compounding interest is the interest is added back to the principal sum while charging interest for the next period so that interest is earned on that added interest. That is as a result of reinvesting interest, compound Interest (CI) / Cumulative Interest are…

  • What is fixed rate loan and floating rate loan?

    A fixed rate loan is a loan where the interest rate on the loan doesn’t fluctuate during the entire term of loan or part of the total term of loan. This allows the borrower to accurately predict their future payments.  In floating rate loan (also called variable rate loan)…

  • What is risk management in agriculture?

    What is risk management in agriculture?

    Banks provide a number of credit facilities to customers engaged in activities related to agriculture. Many a time banks take the brunt when unforeseen disaster strikes the farmers in the form of ‘on-farm loss’ and or ‘off-farm losses.  These types of losses caused mainly due to production risk and…

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