Loans and Advances against Shares, Debentures and Bonds
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)…
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Advances against book-debts
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…
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Loan against Insurance Policies
A loan against insurance policies is available to Life Insurance policyholders on the surrender value of the policy which is usually acquired after paying premiums for at least three years. Surrender value (cash value) in an insurance policy refers to the amount of money an insurance company pays to the policyholder if they decide to…
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What is Document of title to goods?
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…
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Government sponsored Scheme: DAY-NRLM/ (SGSY)
Swarnjayanti Gram Swarozgar Yojana (SGSY) was introduced by the Ministry of Rural Development to assist poor families living below the poverty line in rural areas in taking up self-employment. The scheme was renamed as National Rural Livelihood Mission in 2011. In 2016 the program was renamed “Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)”.…
MSME: Performance and Credit Rating Scheme Latest Developments
The Ministry of Micro, Small, and Medium Enterprises has launched the Performance & Credit Rating Scheme (PCR) to ascertain the strengths and weaknesses of MSMEs’ existing operations and take corrective measures to enhance the organizational strength. Under the PCR scheme, empanelled rating agencies carry out the rating of MSE. The rating makes credit available at…
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