Banking News

Category Archives: Loans and advances

  • What is Contract of Indemnity?

    What is Contract of Indemnity?

    (This article explains the meaning of contract of Indemnity; features of Indemnity Contract, rights and duties of indemnity holder.) Definition of contract of indemnity: Section 124 of contract Acts defines contract of indemnity as “a contract by which one party promises to save the other from loss caused to…

  • What is demand loan?

    What is demand loan?

    Demand loan is a form of short term fiance provided by  the  banks to their customers. Unlike term loans where loans are granted on a fixed tenure and that shall be repaid in installments as per terms and conditions of the sanction, the demand loans work on the specific…

  • Different Types of Bank Borrowers

    Different Types of Bank Borrowers

    There are different types of bank borrowers. They may be classified as individuals, partnership firms, private limited, public limited companies, large corporate, public sector undertakings, multinational companies etc. The financial and non-financial credit facilities required to the above customers are many. We can divide them in to retail borrowers…

  • Bank finance of different types

    Bank finance of different types

    (This posts elucidates different types of credit facilities extended by the banks) You may be aware that banks lend various types of credit facilities to their customers  viz.Demand Loans,  consumer loans, home loans, education loans, term lending,  working capital finance,  export credit, Bank Guarantee, Letter of credit, etc. Bank…

  • What are secured and unsecured loans?

    What are secured and unsecured loans?

    There are two basic types of loans granted by lenders namely Secured and Unsecured loans. Secured Loan Secured loans are those loans which are granted by the lenders taking security from the borrower against the loan. The security may be prime security or collateral security.Prime security is an asset…

  • What is Legal Entity Identifier (LEI) ?

    What is Legal Entity Identifier (LEI) ?

    LEI are a 20-digit unique code to identify parties to financial transactions worldwide. Following the global financial crisis, the Legal Entity Identifier (LEI) code is conceived at the initiative of ‘Group of 20, financial stability Board’. In US and Europe, the regulations require the use of LEIs to uniquely…

  • How commercial Banks sanction Personal Loan, Consumer Loan & Vehicle Loan?

    How commercial Banks sanction Personal Loan, Consumer Loan & Vehicle Loan?

    Commercial Banks extend varieties of credit facilities to individuals like salaried persons, professionals, businessmen by way of personal loan, vehicle loans and consumer loans. Personal loan  will be granted for any legitimate purposes like  whatsoever (e.g. expenses for domestic or foreign travel, medical treatment of self or a family…

  • What is MUDRA Bank?

    What is MUDRA Bank?

    MUDRA stands acronym for Micro Units Development & Refinance Agency Ltd. It is an institution of Government of India set up for development and refinancing activities relating to non-corporate micro units. At present MUDRA is set up as a subsidiary of SIDBI, pending statutory enactment by the Government. Traditionally…

  • Interest subvention scheme for Women SHGs - Year 2017-18

    Interest subvention scheme for Women SHGs – Year 2017-18

    The Ministry of Rural Development, Government of India is operating a scheme namely ‘Interest Subvention Scheme under Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)’. The funding for the scheme will be met out of Central Allocation under DAY- NRLM. This scheme is limited to Women Self Help…

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