Banks may lend up to 80 to 85 percent of the face value of NSCs or KVPs in the form of a loan or overdraft facility. Process To get a loan, the NSC or KVP holder must pledge the certificates to the lender. On application, the concerned post office where the certificates were purchased will…
Banks offer loans against securities for customers’ short-term funding needs. Loans against shares, government bonds, insurance policies, NSCs, and other investments come under this category. For loans against shares, debenture banks are required to strictly observe regulatory restrictions on ‘Exposure Norms’ as explained below. Restrictions on Holding Shares in Companies In terms of Section 19(2)…
A loan against a term deposit, also known as a loan against a fixed deposit (FD), is a secured loan that allows bank depositors to borrow against the security of the deposits. Loans or cash credit limits can be availed against Fixed Deposits, or Cash Certificate and Recurring deposits. Loans can be availed against domestic…
Book debts are typically made up of sums owed for goods or services supplied or work carried out on credit. Any sum due under a loan may also be treated as a book debt. Book debts in the balance sheet are classified as current assets (Trade Receivables). However, it is important to know that all…
A document of title to goods is a formal document that proves ownership of goods or property. A document of title to goods is used in the ordinary course of business to prove possession or control of goods. Section 2(4) of the Sale of Goods Act defines a document of title to goods as “A…
Banks and non-banking financial institutions lend for purchase or construct a new home. For a smooth home loan (also known as housing loan in some banks) process, the prospective borrower must submit a duly filled application along with important documents such as identity proof, address proof, income proof, etc. If there is a co-borrower they…
Credit cards offer several benefits to merchants and cardholders. Benefits to merchants: Credit card transaction processing directly impacts a business’s ability to provide convenient and secure payment options for customers, which can affect sales, customer satisfaction, and overall growth. Enhanced customer experience By offering a simple, convenient credit card payment experience, businesses can meet the…
A Credit card holder is the customer, or consumer, who is using the card for payment or cash withdrawal. Credit card holders can also add authorized users to their account. The authorized user can make purchases, but the primary holder is still responsible for the debt. Credit card issuer: Financial institutions, usually banks and NBFCs,…
Women Self Help Group (SHG) under DAY-NRLM is a group voluntarily formed by 10-15 women. The special SHG can be formed with 5 persons in the difficult area, remote area, or groups with disabled persons, consisting minimum of 5 persons. The other persons with disabilities, the elders, and trans-genders can only form SHG with both…
Commercial Banks are directly financing Self Help Groups (SHGs) or Financing SHGs, which are organized by NGOs etc. directly (Direct Linkage). Banks also Finance NGOs/MFIs for on-lending to SHGs organized by them (Indirect Linkage). Role of NGOs in financing SHG: Non-government organizations (NGOs) are doing a remarkable job in the area of socioeconomic, cultural, and…