TReDS (Trade Receivables Discounting System) is an institutional setup for flow of finance to micro, small and medium enterprises (MSMEs) through multiple financiers at a competitive rate. The model outlined for TReDS in the paper, envisages its operation both in primary market segment as well as a secondary market segment as authorised payment system under…
Pissiculture is one of the allied activities classified under priority sector lending. Both term loan and cash credit facilities can be considered under the scheme. The facility is extended by the banks for cost of digging of pond or renovation of existing pond, stocking of spawn/fingerlings of fish, seeds, nets, application of lime cakes, fertilizers,…
In terms of Section 15 of the Credit Information Companies (Regulation) Act, 2005(CICRA), every credit institution shall become the member of at least one Credit Information Company. Normally to adhere the above regulation most of the Banks and Financial institutions become the member of CIBIL to seek CIR of borrower entity, all the partners, promoters,…
Commercial Banks are eligible to claim interest subvention of 2% p.a in respect of short term crop loans granted by them at 7% p.a to farmers in rural and semi-urban areas. The interest subvention will be allowed on the loan amount up to Rs.300000/- disbursed from the bank’s own source of funds. Interest subvention of…
The interest rate on advance levied by banks comprises ‘Base Rate’ of the respective bank and ‘Spread’ over the base rate decided by the banks Board. Though ‘Base Rate’ is constant for computation of interest on all advances, the ‘Spread’ over base rate varies on each category of advances depending upon tenure of loan, risk…
DRI loans scheme (also known as DIR loan scheme) was introduced in the year 1972 to financially assist chosen low income groups. The loan scheme envisages lending by banks to weaker section of the society at a uniform concessional rate of interest of 4% per annum. The borrowers under this category of loan are rural…
The definition of Non-Cooperative Borrowers is originally defined in RBI circular dated 26.02.2014 on ‘Frame work for Revitalizing Distressed Assets in the Economy-Guidelines on Joint Lenders’ Forum (JLF) and Corrective Action Plan (CAP). The definition of a Non-Cooperative Borrower as contained therein is now modified by RBI which reads as under: “A non-cooperative borrower is…
Recovery through award of Lok Adalat is the easiest and fastest mode of recovery. The literal meaning of Lok Adalat is people’s Court. The concept comes under the ‘Alternative Disputes Redressal Mechanism’ like arbitration, conciliation etc. The pre-litigation up to Rs.20 lacs and suit filed accounts where plaint amount does not exceed Rs.20 lacs can be…
Latest amendment: The notification of finance ministry, Government of India on September 6, 2018 increased the monetary limit up to Rs.20 lakh from earlier limit of Rs.10 lakh for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions. As per the plan, a common e-auction platform will be set…
(This article envisions what are the title deeds of a property, how to examine them and how to find out the construction is legal and authorized etc.) Identifying a property for purchase is not just about the price of the property, locality, or amenities like gym, club swimming pool etc. Along with identifying a property…