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PROJECT REPORT ON BANK LOANS
Bank Loans : Leading of fund to the constituents, mainly traders, business and industrial enterprises, constitutes the main business of the banking industry. The major portion of a Bank fund is employed by way of loans, which is the most profitable employment of its fund. The major part of bank is earned from interest. The business of leading, nevertheless is not without certain inherit risks largely depending on the borrowed funds, a banker therefore, follow a very caution policy, and conduct his business on the basis on the basis of safety, liquidity, profitability etc.
MEANING OF LOANS
Under the lonas, credit is given for a definite purpose and for a predetermined period. Normally these loans are repayable in installments. Funds are required for single non-repetitive transactions and are withdrawn only once. If the borrower need funds again or wants renewal of an existing loan, a fresh request is made to the bank.
PROJECT REPORT ON TYPES OF LOANS
Bank grants loan for different periods short, medium and long and for different purposes.
Short Term Loans
Short-term loan is granted to meet the working capical needs of the borrowers. These loans are granted against securities of tangible assets mainly the movable assets like goods and commodities, shares, debentures etc. Since April 1995, RBI has made it mandatory for the banks to grant a portion of bank credit to big customers in the form of loans, which may be for various maturities. The RBI has also permitted the banks to roll over such loans i.e. to extend the loan for another period at the expiry of the tenure of the first loan.
Medium and long-term loans are usually called ‘Term loans’. These loans are granted for more than one year and also meant for the purpose of capital asset for establishment of new expansion or diversification of an existing unit. Banks usually grant such loans together with specialized financial institutions like industrial Finance Corporation of India, credit and investment corporation etc.
When a loan is granted both for buying capital assets and for working capital purpose it is called composite loans. Such loans are ususllly granted to small borrowers such as artisans, farmers, small industries etc.
These are loans that are given to individuals for their purpose, Retail loans can be subdivided into 4 categories.
This is the loans scheme that is offered to individual for constructions of house, purchase of house, plot purchase, repair, renovation, purchase of flat from private builder, for furnishing etc. This is one of the retail product thus involve colossal volumes in terms of customers and dunds.
Education loan is given to the students for further studies in India and abroad both. This loan can be for air fare travel expenses admission/tuition fees, boarding and lodging expenses books & stationary expenses etc.
Auto loan is given to individual to buy old/new car and two wheeler. It is very popular loan among borrowers as today everyone want vehicle in their home and bank provide them at easy installments.
Though normally banks provide loans for productive purpose only, but as a exception loans are granted on a limited scale to meet the medical needs or the educational expenses or expenses relating to marriage or other social purpose of the needs persons. Such 1Soans are called Personal loans.
ADVANTAGE OF LOANS
Financial discipline of the borrower
DRAWBACK OF LOANS
Loan become necessary for every money minded person .From this way they can invest their money in other profitable purposes . The best coming way to get loan for building home for buying automobiles or education of your for personnel purposes is provided by Bank Of Punjab ltd. at preferential rate of interest . If you are eligible for loan then u will have money in hand in very few days. The bank will provide you the facility of re payment in easy installments the loan are made available at your doorstep.
INTRODUCTION TO HOME LOANS
The bank will take over the loan from that institution.
Composite scheme: You can apply for combination from any of the above .Building your own home is one of the most important decision you will make and it can consider and life style and financial circumstance. Bank of Punjab stand by you as you take your first step ownership.
Financial Benefits of Home Loans
Tax Benefits : Acquiring a home through Finance schemes provides tax Benefits on the principal repayment.
Security required for the loan :
The person who is applying for loan need to provide security of the financed property and/or such additional/collateral security may be mutually agreed.
Documents required: the indicative list is given below.
In case of Residential Indian :
In case of Non-Residential Indian
If the NRI is in India then the POA can be locally notarized.
Processing Fees :
Processing fee will be 0.20% of the loan amount payable with the application and 0.20% administration sanction, before disbursement of loan.
The loan will be repayable through equated monthly installments(EMI). Post-dated cheques are to be permitted by RBI or NRE/NRO (For NRI). The EMI is to be paid every month through post-dated cheques (PDC). In case of part disbursement of the loan, monthly interest is payable at disbursed amount. This interest is called pre EMI interest (pre EMI) and is payable monthly till disbursement is made or till commencement of EMI.