What are BPLR,Base Rate, MCLR, and Repo linked lending rate(RLLR)?

Banks & Financial Institutions are generally free to determine the lending rates on loans and advances.  The method to arrive at Lending Rate has been changed drastically over last one decade. The Lending Rate like BPLR, Base Rate and MCLR are internal benchmark rates used by individual banks to determine the interest rates on their…

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…