Credit analysis, working capital assessment, term loan appraisal, NPA management, DSCR, and lending guides for bank credit officers.
Consequences of wilful default and penal measures for wilful defaulters are explained in this article. [You should consider reading Meaning of wilful defaulters and procedure for identification of wilful defaulters] What are the Penal Measures for willful defaulters? Names of wilful defaulters are made public. List of wilful defaulters is Read more…
⚡ Quick Facts — Wilful Defaulters (RBI Framework) Governing direction RBI Master Direction RBI/DoR/2024-25/122 (July 30, 2024); entity-specific directions from November 28, 2025 Examination threshold All NPA accounts with outstanding ₹25 lakh and above Large Defaulter threshold Outstanding ₹1 crore and above (suit filed or Doubtful/Loss) Circumstances of wilful default Read more…
CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India) is the statutory online registry where banks must register every security interest created over a borrower’s assets within 30 days of charge creation. Failing to register on time results in loss of priority over other creditors under the Read more…
Definition of MSME [Micro, Small & Medium Enterprises] as per The Micro, Small & Medium Enterprises Development Act 2006. An enterprise is micro Enterprise if investment in plant and machinery does not exceed Rs.25 lacs if engaged in manufacturing or production of goods AND investment in equipment does not exceed Read more…
Primary Security and Collateral Security are fundamental concepts tested across all bank promotion exams — Scale I to Scale IV, JAIIB, CAIIB, and credit officer certifications. The distinction matters not just as a definition question but in areas like SARFAESI enforcement, CGTMSE eligibility, charge creation, and NPA recovery. This article Read more…
⚡ Quick Facts — Pre-Shipment Finance & Export Credit What is packing credit? Loan/advance for purchase, processing, manufacturing or packing of goods before shipment — based on export order or LC Standard period 180 days (pre-shipment and post-shipment) Maximum period (rupee PC) 360 days (with internal approval); 450 days under Read more…
Credit Guarantee Fund for Micro Units (CGFMU) was notified by Govt. on 18th April 2016 and has been made effective retrospectively for loans sanctioned with effect from 8th April 2015. CGFMU or in simple terms Guarantee Fund for Mudra Loans is managed by NCGTC (National Credit Guarantee Trustee Company Limited). The Read more…
Banks in India may grant loans against the security of shares, debentures, and bonds — but only within the limits and conditions prescribed by the Reserve Bank of India (RBI). These guidelines are contained in the Master Circular on Loans and Advances — Statutory and Other Restrictions and were significantly Read more…
Income Tax Return (ITR) is the first thing banks asks for after KYC documents for any type of loan. The borrower submits copies of Income Tax Returns to the bank, which he has filed online. As a banker, specially on credit desk, due diligence is very important for processing any Read more…
Correctly identifying current assets and current liabilities in a balance sheet is a core skill for every bank credit officer and a frequently tested topic in JAIIB. Misclassification distorts working capital, the current ratio, and the entire credit assessment. This guide covers the definitions, classification criteria, a worked balance sheet Read more…