Asset-backed securities (ABS) and mortgage-backed securities (MBS) explained

Both Asset-backed securities (ABS) and mortgage-backed securities (MBS) are fixed income financial securities collateralized (backed) by a pool of assets such as Auto loans, Education Loans, Housing Loan, credit card debts, and receivables etc. This pool of assets is characteristically a group of small and illiquid assets which are unable to be sold individually. Basically,…

What is stock audit?

Inspection of assets charged to the lender at a regular interval is an important and desired activity of banks for monitoring and ensuring end-use of funds.  Besides carrying out unit inspections, banks study the borrowers’ books of accounts, conducting meaningful scrutiny of quarterly progress reports and also the no-lien accounts maintained with other banks at…

CGTMSE guarantee for credit facility covered by collateral security

The Credit Guarantee fund Trust for Micro Small Enterprises (CGTMSE) has been providing guarantee coverage to any collateral / third party guarantee free credit facilities extended by eligible institutions (Member lending institutions (MLI) like banks, financial institutions, select NBFCs and Small Finance banks etc.).  Hitherto, all activities* that come under manufacturing and service sector as…