What is Letter of Credit?

What is Letter of Credit?

A letter of credit is issued (opened) bank a Bank on the request of his buyer customer in favour of seller, which is an undertaking by the bank to make payment to the seller if fulfills his obligations. The process of Letter of Credit is described in the following...
What is working Capital?

What is working Capital?

Working Capital is a financial indicator of operational liquidity of a business organization. Working Capital is the short term assets to cover the short term liabilities of the organization. Working Capital is calculated as Current Assets – Current Liabilities, also...
Comprehensive guide to Credit Appraisal Process in Banks

Comprehensive guide to Credit Appraisal Process in Banks

Do you know, which loans turn bad? Loans sanctioned without proper due diligence and understanding the business of the customer and due to lack of knowledge or ignorance. And loans sanctioned under pressure. You can avoid both situations by having sufficient knowledge...
What is RBI’s 5/25 Scheme?

What is RBI’s 5/25 Scheme?

Infrastructure and core industries projects have a long gestation periods and large capital investments. The repayment period for loans to such sectors should be corresponding to their gestation period of cash flows. However, Banks were unable to provide such long...