Understanding Working Capital Appraisal: Key Financial Terms Explained
The working capital requirement of industrial and trading establishments refers to the total funds invested in various current assets such as raw materials (RM), work-in-process (WIP), finished goods (FG), and outstanding receivables. Banks extend working capital facilities to borrowers based on the nature and level of current assets, after deducting the borrower’s margin contribution, within…
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RBI Circular on Lending Against Silver Jewellery: Key Provisions and Compliance Framework
The Reserve Bank of India has issued standardized directions permitting loans against silver jewellery and specified silver coins, aligning silver with gold for collateralized retail lending; these directions are titled the Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025 and are slated to take effect from April 1, 2026, with detailed…
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Registration of Memorandum of Deposit of Title Deeds (MODT) in Lieu of Equitable Mortgage Deed
IntroductionIn the context of home loans, a mortgage refers to the process wherein a borrower offers their immovable property as collateral to secure a loan. One of the common methods used in India to create such a mortgage—particularly an equitable mortgage—is through the execution and registration of a Memorandum of Deposit of Title Deeds (MODT).…
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Housing Loans for Non-Resident Indians (NRIs)
Non-Resident Indians (NRIs) seeking housing finance in India have access to a variety of loan options offered by commercial banks. These home loans generally carry interest rates starting from approximately 7.35% per annum, which may vary depending on the lending institution, loan type, and individual borrower profile. Interest rates may be either fixed or floating,…
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Challenges in Managing Working Capital Finance
Working capital finance is vital for sustaining daily operations and ensuring a business’s financial stability. However, several operational and strategic issues can hinder its effective management. These include cash flow mismatches, suboptimal inventory control, inefficiencies in receivables and payables, and complications arising from external financing. Missteps in these areas can lead to liquidity constraints and…
The Concept and Status of Home Information Packs (HIPs) in India: An Overview
IntroductionThe concept of Home Information Packs (HIPs) was once proposed in India to enhance transparency and protect the interests of homebuyers. Although the idea received preliminary attention, particularly from industry bodies such as ASSOCHAM, it did not evolve into a mandated or widely adopted framework. Instead, the real estate sector has shifted focus to alternative…
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