Different Types of Bank Borrowers

There are different types of bank borrowers. They may be classified as individuals, partnership firms, private limited, public limited companies, large corporate, public sector undertakings, multinational companies etc. The financial and non-financial credit facilities required to the above customers are many. We can divide them in to retail borrowers and corporate borrowers. Retail Borrowers: The…

Bank finance of different types

(This posts elucidates different types of credit facilities extended by the banks) You may be aware that banks lend various types of credit facilities to their customers  viz.Demand Loans,  consumer loans, home loans, education loans, term lending,  working capital finance,  export credit, Bank Guarantee, Letter of credit, etc. Bank finance to their customers is not…

Conversion of debt into equity by the Asset Reconstruction Companies reviewed

At present, the Asset Reconstruction companies viz. the Securitization Companies / Reconstruction Companies (SC/RCs) are permitted to convert a portion of debt into shares of the borrower company as a measure of asset reconstruction subject to a condition that their shareholding does not exceed 26% of the post converted equity of the company under reconstruction.…

How commercial Banks sanction Personal Loan, Consumer Loan & Vehicle Loan?

Commercial Banks extend varieties of credit facilities to individuals like salaried persons, professionals, businessmen by way of personal loan, vehicle loans and consumer loans. Personal loan  will be granted for any legitimate purposes like  whatsoever (e.g. expenses for domestic or foreign travel, medical treatment of self or a family member, even in medical contingencies, meeting…

What is MUDRA Bank?

MUDRA stands acronym for Micro Units Development & Refinance Agency Ltd. It is an institution of Government of India set up for development and refinancing activities relating to non-corporate micro units. At present MUDRA is set up as a subsidiary of SIDBI, pending statutory enactment by the Government. Traditionally commercial banks and financial institutions in…

How agriculture insurance helps farmers on crop losses?

The farmers in India have been inherently facing with on-farm risks like famine; flood, extreme weather etc. Though these types of natural risks cannot be totally avoided, there are many new on-field techniques developed in India to minimize the loss. However, the most important strategy to mitigate the risk is agriculture insurance. The insurance company…