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…
Limitation period for recovery of Debt in India is governed by the Limitation Act, 1963. The Limitation Act, 1963 specifies certain prescribed period within which any suit appeal or application can be made. A banker is allowed to take legal action by filing a suit, prefer an appeal and apply 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…
What Is CERSAI? CERSAI — the Central Registry of Securitisation Asset Reconstruction and Security Interest of India — is the country’s centralised online registry for all security interests created by banks and financial institutions over the assets of borrowers. Established under Section 20 of the SARFAESI Act, 2002, and operationalised Read more…
Particulars of equitable mortgage of immovable properties are required to be filed with CERSAI within 30 days of creation of mortgage. If charge is not filed with CERSAI within 30 days, following is the procedure for filing charge (CERSAI registration) with delay after 30 days: [Also Read : CERSAI Fees Read more…
We have explained below what is primary security and what is collateral security and how these are different. Also Read: What is mortgage and types of mortgages What is primary security? In simple terms, Primary Security is that asset which is created out of the finance provided by lender. Read more…
Pre-shipment Finance or Packing credit is a type of credit facility (loan), available for exporters. The advance is provided for financing the purchase of raw material, processing, manufacturing or packing of goods required before shipment of goods and for meeting working capital expenses for rendering of services. You may like Read more…
A.P. (DIR Series) Circular No. 05 October 06, 2016 Import Data Processing and Monitoring System (IDPMS) Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No.65 dated April 28, 2016 read with Section 5 of the Foreign Exchange Management Act 1999 (42 of Read more…