A mortgage is the transfer of interest in an immovable property to a lender as security for repayment of a loan, defined under Section 58 of the Transfer of Property Act, 1882. Indian law recognises six types of mortgage — simple, conditional sale, usufructuary, English, equitable (deposit of title deeds), Read more…
Analysis of holding period is an important aspect while sanctioning working capital facilities in Banks. In this article, we have discussed how holding periods are calculated and analysed for stocks, receivables and creditors. Holding levels means the period of a particular current asset or current liability after which it is Read more…
State Consumer Disputes Redressal Commission, Maharashtra directed Bank of Baroda to pay Rs.1 lac as compensation for not informing the rejection of housing loan and reasons thereof. Jayprakash R.Kushwaha entered into an agreement for purchase of house, in a Co.Op. Housing Society for Rs.4 lakh on 12/3/2007 and gave Rs.87,000/- as Read more…
Difference between first Charge and 2nd Charge and pari passu charge has been explained in this article. Meaning of Charge in Banking: Evidence of a lien or mortgage that secures the repayment of a loan. So when we say, charged asset, it refers to the assets mortgaged or under lien Read more…
Looking for a housing loan? But not sure, which bank is offering Lowest Interest on home loan? Here we have compared the rate of interest offered by top lenders, so that you can get best home loan at lowest interest rate. Bank of Baroda Bank of Baroda is offering lowest interest Read more…
On 31st December 2016, Prime Minister announced that coverage under Credit Guarantee Scheme will be increased to Rs.2 crores. Till now, the coverage under CGTMSE is Rs.1 crores under which Micro, Small and Medium Enterprises can get collateral free loans. CGTMSE (Trust) has now issued circular on 9th January 2017 Read more…
Guarantee cover for manufacturing and service Mudra Units is available under CGFMU as well as CGTMSE eligible. So, from where to obtain guarantee cover for such Mudra Units? CGTMSE of CGFMU? Credit Guarantee Trust for Micro & Small Enterprises (CGTMSE) has issued circular (117/2016-17) regarding modifications due to introduction of Read more…
When a large manufacturer needs a ₹400 crore working capital limit — more than any single bank wants to take on alone — lenders have two choices: pool together under a consortium arrangement or each bank lends independently under multiple banking. Both result in the same borrower getting funded. But Read more…
There are some sectors of the economy, which may face difficulty in getting timely and adequate credit. To facilitate these sectors easy and timely credit, Reserve Bank of India (RBI) has directed banks to provide a specified portion of their lending should be priority sector lending, i.e., lending to few Read more…
‘Term Loan Appraisal’ technique is explained in this article. Terms Loans are granted to finance Capital Expenditure like plant & machinery, land and building or setting up an entire unit. Term Loans have a specific repayment period and are generally repayable in installments. Cash generating capacity of the unit is Read more…