CORPORATE ADVANCES

SEPTEMBER,2013

NEED FOR CREDIT

Business Entities require credit for Purchasing Fixed Assets Meeting Working Capital Requirements
Commercial banks are traditionally, considered as provider of working capital, mainly because the resources available, in the form of deposits are of short term maturities of up to 3 years, on an average. This is not to say that banks do not provide term loans for fixed assets.

THE 5 Cs OF CREDIT
Factors determining the credit decisions are mainly :
Character Capacity Capital Collateral Condition

CONCEPTS
1. 2. 3. 4. Margin or LTV Debt / Equity Security viz. primary, collateral Charge :
Pledge Hypothecation Mortgage Registered Mortgage, Equitable Mortgage, English Mortgage Assignment of Debt Lien

THANK YOU