This document discusses different types of loans provided by banks. It begins by defining what a loan is and explaining the loan application and approval process. It then describes several common types of loans including overdrafts, cash credits, housing loans, personal loans, vehicle loans, education loans, agricultural loans, and credit cards. For each loan type, it provides details on eligible purposes and terms. It concludes by covering principles of sound lending and the role of CIBIL in evaluating loan applications.
elationship between banker and customer
,
definition of a banker and customer
,
definition of banking
,
general relationship between banker and customer
,
relationship as debtor and creditor
,
special relationship: banker as trustee
,
pawner and pawnee
,
bailer and bailment relationship
,
mortgager and mortgagee relationship
,
executer
,
attorney
,
guarantor
,
duties of a customer
,
rights and duties of the banker towards the custom
,
rights of a banker
,
garnishee order
Youtube Video Link - https://youtu.be/AJsUYo2GqvE
Banks need to recover the money lent to the borrowers. In case the funds lend becomes npa; it hampers whole banking business and decrease profitability.
“Recovery” is defined as the process of regaining and saving something lost and “Management” is the process of planning, organizing and controlling activities to achieve the objectives of business efficiently.
Recovery Management is thus concerned with designing and implementing a collection of strategy to recover the debts without losing customers.
Recovery measures could be legal and non-legal :- Banks could adopt legal measures to recover loans by filing a suit in civil court or filing an application before the DRTs. Before taking legal actions banks generally give frequent reminders by calls, messages, mails and visit to borrower’s place which is considered as non-legal measures without intervention of court.
Major reasons behind defaults :- Lack of credit evaluation, Inadequacy of collateral security/ equitable mortgage against loan, Lack of follow up measures, Default due to natural calamities etc.
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This presentation covers Merchant Banking History; Categories; Services provided by them; Methods of placement; underwriting; Issue management & SEBI guidelines.
elationship between banker and customer
,
definition of a banker and customer
,
definition of banking
,
general relationship between banker and customer
,
relationship as debtor and creditor
,
special relationship: banker as trustee
,
pawner and pawnee
,
bailer and bailment relationship
,
mortgager and mortgagee relationship
,
executer
,
attorney
,
guarantor
,
duties of a customer
,
rights and duties of the banker towards the custom
,
rights of a banker
,
garnishee order
Youtube Video Link - https://youtu.be/AJsUYo2GqvE
Banks need to recover the money lent to the borrowers. In case the funds lend becomes npa; it hampers whole banking business and decrease profitability.
“Recovery” is defined as the process of regaining and saving something lost and “Management” is the process of planning, organizing and controlling activities to achieve the objectives of business efficiently.
Recovery Management is thus concerned with designing and implementing a collection of strategy to recover the debts without losing customers.
Recovery measures could be legal and non-legal :- Banks could adopt legal measures to recover loans by filing a suit in civil court or filing an application before the DRTs. Before taking legal actions banks generally give frequent reminders by calls, messages, mails and visit to borrower’s place which is considered as non-legal measures without intervention of court.
Major reasons behind defaults :- Lack of credit evaluation, Inadequacy of collateral security/ equitable mortgage against loan, Lack of follow up measures, Default due to natural calamities etc.
Thank You For Watching
Please Subscribe To DevTech Finance
This presentation covers Merchant Banking History; Categories; Services provided by them; Methods of placement; underwriting; Issue management & SEBI guidelines.
Loans are like a helping hand when you need money for different things in life. In India, there are many types of loans, each designed for a specific need. Let's dive into the world of loans and understand what they are all about.
1. Personal Loans: These are like a magic wand for sudden expenses. No need to give anything valuable as security. Just show your income and pay it back with interest.
2. Home Loans: Dreaming of your own home? Home loans can make it happen. You use your house as a promise to pay back the loan, and you get a long time to do it.
3. Car Loans: Want to own a car? Car loans can make it real. The car itself is like a guarantee that you'll pay the money back.
4. Education Loans: For students, education loans can be a lifesaver. They help pay for your studies, and you can pay them back after you start working.
5. Business Loans: If you want to start or grow a business, these loans can be your best friend. Depending on your plan, you might need to give something as security.
6. Gold Loans: Have some gold jewelry? You can get a loan by keeping it as security. It's quick and easy.
7. Loan Against Property: If you own a valuable property, you can use it to get a big loan. You promise to pay back, and they give you the money.
8. Loan Against Securities: If you have investments like stocks or bonds, you can use them to get a loan. It's like a win-win.
9. Agricultural Loans: Farmers get help too! These loans are for buying farming stuff. The government also has special schemes.
10. Government-Sponsored Loans: The government wants to help people in different areas like small businesses. They offer loans with special benefits.
So, there you go! These are the main types of loans in India. Remember, each loan has its own rules, so make sure to check with the bank or lender about how it works before you decide which one is right for you. Loans can be a great help, but it's important to use them wisely and repay them on time.
5 faqs related to an education infrastructure loanRaveenaroy2
For a country to prosper and develop, it is imperative that it has good educational institutes. Individuals looking to create such institutes may often face one obstacle when going ahead with their dream
Detailed presentation on education loan system in India- eligibility criteria, application process, rate of interest charged and repayment options. Advantages and disadvantages of borrowing loan.
Credit assessment is a method used by banks or other financial institutions that are useful to determine whether a prospective debtor is feasible or not get a loan. The way is to collect customer data taken from the application data customer lending other than by using a statistical program that contains a history of loan among other things on how the payment cycle is billing the customer, if the customer pays bills on time or not, how many credits are still in progress. This assessment helps the banks to analyze credit applications besides other qualitative factors. If the customer has a problem in the smooth payment, the information will be known by funders. Profile Matching is the decision support system method to rank the client feasibility. It can assess based on particular parameters given. There are several parameters to be considered. It helps banks or other financial agents to pass the client borrowing money.
Credit Assessment in Determining The Feasibility of Debtors Using Profile Mat...inventionjournals
Credit assessment is a method used by banks or other financial institutions that are useful to determine whether a prospective debtor is feasible or not get a loan. The way is to collect customer data taken from the application data customer lending other than by using a statistical program that contains a history of loan among other things on how the payment cycle is billing the customer, if the customer pays bills on time or not, how many credits are still in progress. This assessment helps the banks to analyze credit applications besides other qualitative factors. If the customer has a problem in the smooth payment, the information will be known by funders. Profile Matching is the decision support system method to rank the client feasibility. It can assess based on particular parameters given. There are several parameters to be considered. It helps banks or other financial agents to pass the client borrowing money
3. INTRODUCTION.
A bank is an institution which accepts deposits from the public
as well as lend money to the public.
From the definition itself it is clear that one of the
primary function of a bank is lending of money. The main
earnings of a banking institution is the interest from their
customers(i.e., debtors). So, it is very essential to lend money
to the public via loans and advances.
a loan is a debt provided by one entity to another entity
at an interest rate ,For a specific period of time.
4. PROCESS OF GRANTING A LOAN
Loan application
CIBIL check
Submission of Required
documents
Approval of loan
5. FORMS OF LOANS.
There are many forms of loans as follows:-
Overdraft
Cash credit
Credit cards
Housing loan
Vehicle loans
Education loan
Personal loan
Gold loan
Festival loans
Consumer loans
Gold loans
Loan against pension
Loans to doctors for
Opening clinic
6. 1. OVER DRAFT
The word overdraft means the act of overdrawing from a
Bank account. In other words, the account holder withdraws
more
money from a Bank Account than has been deposited
in it.
7. 2. CASH CREDIT
Cash Credit is one type of Advance made by Banks
to it's Borrowers. By granting this facility Bank allows
borrower to withdraw money up to certain fixed amount
sanctioned by the Bank. Certain securities and
guarantees are to be provided by the borrower as per
Bank's rules and it is to be renewed every year as
specified at the time of granting this facility. If borrower
fails to repay the amount Bank can take action as per
rules and conditions fixed by the Banks.
8. 3. HOUSING LOANS.
The basic needs of a human include, food, cloth, water,
shelter and security. Housing is an important need. Banks
provide different types of loans for building house known as
HOUSING LOANS. There are different types of housing
loans:-
Home purchase loan- for purchase a new house.
Home construction loan- construction of a house
9. Home improvement loan- for repair works and
renovations of an existing house
Home extension loan- for making extensions for
the house i.e., building additional rooms, floors etc.
Land purchase loan- purchase of land for
building a house.
Home conversion loan- for building a new
house by loan during the payment of an
existing home loan. New loan is added to the
existing one.
Balance transfer loan- existing home loan is
transferred to another bank.
Bridge loan- for those who wish to sell the
existing house and buy or build a new one.
10. 4.PERSONAL LOANS
Personal loans are intended to meet any kind of personal
expenses.
The loan can be for any of the following purposes:-
Family functions
Meeting travel expenses in India or abroad
Marriage expenses of children
Buying a laptop / pc
Interior decoration of house
11. 5. VEHICLE LOANS
Vehicle loans particularly car loans are offered by all the banks
in the country . the terms and conditions of vehicle loans vary
from bank to bank . the purpose of vehicle loan is to finance
for purchase of ;
A. a new car , bike , scooter , jeep or MUVs
B. a used car , bike , scooter , jeep (not more than 5 years old)
C. Take over of existing vehicle loan from other bank or
financial institution.
12. 6. EDUCATION LOANS
The purpose of education loan is to provide better
educational opportunity to bright and financially backward
students and brings within their reach all types of education.
Education loans are provided for pursuing plus two, graduation
courses, PG courses and other professional courses. It can be
availed for:
A. Tuition fees payable to college
B. Hostel fees
C. Examination/ library / laboratory fees
D. Purchase of books/equipment/instruments/uniforms
E. Travel expenses
F. Purchase of computer ,if it is necessary for completion of
course.
G. Cost of two wheeler upto Rs 50,000
13. 7. AGRICULTURAL LOANS
It is always said that, most of the people India
are depending agriculture or farming as their livelihood. So,
it is very important to develop the rural sector. In order to
fulfill that banks provides various credit facilities to the
farmers. The loans are provided for:-
Purchase of asset like farm machinery, bullocks, sheep etc.
Creation of assets such as poultry, dairy development etc.
For rural activities under agriculture, horticulture, plantation,
animal husbandry fisheries etc.
14. 8.CREDIT CARDS
Credit card is any card , plate or device that may be used
from time to time and over and over again to borrow money or
buy goods and services on credit. Credit card enable card
holders to avail credit facilities for a specified period of time
without giving any security to the issuing bank.
15. PRINCIPLES OF SOUND LENDING
LOANprofitability
Ability to
repay
liquidity
Reduce
risk
productivity
16. Credit Information Bureau (India)
Limited (CIBIL) is India’s first Credit Information
Company (CIC) founded in August 2000. CIBIL collects
and maintains records of an individual’s payments
pertaining to loans and credit cards. These records are
submitted to CIBIL by member banks and credit
institutions, on a monthly basis. This information is then
used to create Credit Information Reports (CIR) and
credit scores which are provided to credit institutions in
order to help evaluate and approve loan applications.
Since its inception, CIBIL has come to play a critical role
in India’s financial system. Whether it is to help loan
providers manage their business or help consumers
secure credit faster and at better terms, the use of
CIBIL’s products have led to a significant change in the
way the credit life cycle is managed by both loan
providers and consumers.