Loans, Accounts, Credits

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An establishment for custody of money, which it pays out on customer's order. Bank is a financial institution which deals with other people's money i.e. money given by depositors. A bank may be a person, firm or a company. A banking company means a company which is in the business of banking. A bank lends out money in the form of loans to those who require it for different purposes.
A bank acts as a connecting link between borrowers and lenders of money. Banks collect money from those who have surplus money and give the same to those who are in need of money.

name to enable people to know that it is a bank and that it is dealing in money. 5/24/12

A bank provides various banking facilities to its customers. They include general utility services and agency services. add the word "bank" to its A bank should always

Personal Loans Purpose: To meet instant personal requirements ranging from home renovation to purchasing of new laptop, a getaway with family etc Loan tenure: 1 year to 7 years Interest Rate: 12% - 24% Repayment: Post dated cheque or standing instructions to debit from personal account

Home Loans Purpose: To buy a home, for investment or for personal use Loan tenure: 5 years to 20 years Interest Rate: 9% - to edit Click 16%

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Tax Rebate: Both principal and interest are eligible for tax deduction

Education Loans Purpose: To fund self or childs education Loan tenure: 5 years to 7 years Interest Rate: 10% - 12% Expenses Covered: Course and examination fee, book and travel

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Loan Amount: Rs 10 lakh for study in India & Rs 20 lakh for abroad

Loans against assets Purpose: For any kind of personal use by keeping assets like property, gold, shares, bonds etc as security Loan tenure: 1 year to 15 years Interest Rate: 12% - 16% Loan to cost ratio: About 60% of residential cost 50% of commercial cost in case of property

Vehicle Loans Purpose: To buy motor vehicles like car, motor cycle, tractor etc Loan tenure: 1 year to 7 years Interest Rate: 11% -to edit Click 16%

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Loan to cost ratio: 85% - 90% of vehicle cost

Business Loans Purpose: To meet any kind of business requirements Loan tenure: 1 year to 10 years Interest Rate: 10% - 24% (depends on business profile) Types: Secured security required, interest rate is low & tenure more

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Un-secured without any security, high interest & low tenure

Current Account Purpose: To meet cash requirements on daily basis of any business Min Balance: No minimum balance required, however this account is not free Savings Account Interest Rate: No interest is paid Fixed Deposits Account Purpose:To gain interest income on savings over a period of time Balance: Min 5000 and max 1 crore for individuals Interest Rate: varies between 5% to 12% depending upon tenure Other features: Money is required to be kept for fixed duration in a bank, it is risk free in nature

Other features: Pay order, Purpose: To keep cash in a demand draft, net banking, safe bank account, which is phone banking, funds not required immediately but transfer through NEFT, is easy to withdraw any time Master subtitle style cheque RTGS, outstation Click to edit collection etc Min Balance: May vary from 0 to 20,000 depending upon features Interest Rate: 3.5% - 6.0% Other features: Debit card, cheque book, online internet banking, mobile banking, cash withdrawal and deposit at ATMs

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Demat Account Purpose: To keep securities (equity shares, bonds), gold, commodities etc in dematerialized form in a safe bank account Min Balance: This account does not hold any cash Recurring deposit A/c Purpose: To put monthly savings with the bank and earn an interest on it Interest Rate: No interest is paid Escrow Account Purpose: To keep the money separately that is property of others Lenders generally require it. It provides protection to the lender in case client defaults For e.g. if a company is considering some deal with a foreign company to acquire it then it has to keep the deal amount in a separate escrow account as a guarantee that it will honor its commitment once deal is finalized

Other features: This a/c provides holding of costly assets like gold and facilitate trading in securities but Bank Min Balance: 1,000 edit Master subtitle style Click to charges maintenance fees Interest Rate: 3.5% 10.0%, depending amount and tenure upon

Other features: Usually it is for max period of 5 years. It is like SIP but money is risk free here. Bank may charge penalty in case of failure in payment for any month

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The borrowing capacity provided to an individual or a company by the BANK CREDIT banking system, in the form of credit or a loan

CHARACTERISTICS

The term of the Loan: The "term" of the loan refers to the length of time you have to repay the debt. Debt financing can be either long-term or short-term Security or Collateral required for a loan: Debt financing can be both secured or unsecured

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Working capital lines of credit: For the ongoing cash needs of the Credit cards: Higher-interest, unsecured revolving credit Short-term commercial loans: For one to three years Longer-term commercial loans: Generally secured by real estate or other major assets Equipment leasing: For assets you don't want to buy outright Letters of credit: For businesses engaged in international trade

TYPES

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