Using cheques for financial transaction is more frequent these days. The use of cheque as a financial instrument is done in the good faith that the cheque will be honored and cleared when given in for processing in a bank. The condition when the actual financial transaction is not possible by the cheque or the… Read More »
Recent reports said that the rates of home loans will remain the same as there is lesser chance for it to rise in the current situation. Bankers said that there was enough liquidity in the system and so the interest rates will not go up. According to K. R. Kamath, Chairman and Managing Director of… Read More »
Recent reports said that demand for home loans have gone down recently. The market players have said that potential buyers are waiting for the high property prices to go down. They also fell that the high-interest rates could be one of the reasons for the lesser demand for home loans. The downtrend is more prevalent… Read More »
Foreclosure charges are the loan closing costs/additional fees associated with the closing of a loan, most often in case of a mortgage loan or home loan. These may include the costs of legal formalities, inspections, penalty fee, etc. In some cases, the payment of loan closing costs may be negotiable. Although the ministry of finance… Read More »
A loan that is not meeting its stated principal and interest repayments is called non-performing asset or NPA. Any commercial loans which are more than 90 days overdue are usually classified as nonperforming assets by banks. Loans of this type are considered nonperforming because the bank is no longer receiving a return on the investment… Read More »
Loan value is the highest amount of credit/loan that a lender/bank is willing to give based on the value and nature of the asset that is used to secure the loan. The assessment of loan is the first step to granting of any kind of secured loan, including a mortgage loan where the pledged property… Read More »
Electronic Clearing Service (ECS) is an electronic mode of payment for transactions that are periodic and repetitive in nature. This makes the transactions of banks cost effective, smoother and easier. The person/ institution availing this facility has to furnish an authorization to the bank giving consent to avail the ECS Credit facility with details of… Read More »
A report of all transactions in an account during the time from the previous statement to the current statement is called the bank statement. It could be report of monthly transactions or even annual transactions. The opening balance of previous period (month or year) along with account of all transactions and the closing balance of the… Read More »
A fixed payment amount made by a borrower to a lender at a specified date each calendar month is called equated monthly installment or EMI. EMI are used to pay off both interest and principal each month, so that over a specified number of years, the loan is paid off in full. The biggest benefit of an… Read More »
First of all let us see what the core difference between public sector bank and a private sector banks is. Public sector banks are those which are operated by govt. bodies and the employees get salaries from the government funds. Private sector banks are the banks which are controlled by the private lenders with the… Read More »