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 »
Term loan are loans offered by banks and financial institutions to borrowers who will have to repay the amount in a specific repayment schedule with floating interest rates. Term loans are generally offered for businesses. Term loans are borrowed for the operations of small business units; it is not a personal loan. The loan amount… Read More »
Central bank is a bank of a country that has control over the regulation of currency supplies and the banking industry. The central bank of a country plays a very important role in the stability of the money supply and the currency of the country. The central bank has the responsibility of regulating the banking… Read More »
Savings Bank Accounts are meant to promote the habit of saving among the citizens while allowing them to use their funds when required. The main advantage of Savings Bank Account is its high liquidity and safety. On top of that Savings Bank Account earns moderate interest. Savings Bank Account can be opened in the name… Read More »
Home is one of the basic necessities for every human, but possessing a home of his own is a dream for many people particularly for the average families. Today it is possible for most of the people in the country to full fill their dreams through home loans. The reasonable interest rates have increased the… Read More »