There are plenty of advantages to taking out a personal loan with a bank.
Loans have for a very long time been a great way to make ends meet when salaries and wages are just not enough. There are many ways through which one can get a loan but the most popular one still remains to be a secure bank loan. People acquire loans for different purposes, among these are building new homes, to buy goods such as music systems and TVs, and for starting new businesses both in services and manufacturing. There are also personal loans that are normally given to people to help them meet important needs before their salaries come in. There are a number of risks that banks are faced with when they lend out money to people and among these is the risk of loan defaulters. The latter could occur for a number of reasons such as natural calamities that make it difficult for one to start again. It is for these reasons therefore that banks have put in place the necessary procedures and norms to be followed before giving out a loan.
One of the ways that a bank could determine whether or not a client is loan worthy is by evaluating and examining their credit proposals to find out if they are both feasible and viable financially and technically. The appraisal of every loan is done individually so as to ascertain if the proposal is sound and a secure bank loan can only be granted if the proposal is sound.
Banks also safeguards themselves against losses by asking for securities from their borrowers. Security in this context is any kind of asset with specific qualities, one of them being monetary value that the banks can posses in case of a default and applies it toward the repaying of the loan. There are two kinds of securities as far as a secure bank loan is concerned and they are collateral security and primary security.
If you’re looking to finance a major purchase, a personal bank loan may offer lower interest rates than a credit card. Banks also typically provide a more personalized approach to lending. If you have questions, you may find it easier to speak with someone face-to-face at a local branch office rather than using an automated customer service system.
Maybe you have a more basic concern, such as how to get a loan from the bank in the first place.
Why you should take this book?
By taking this book, you will be able to Write Bank Loan Proposals with better clarity and confidence.
You will understand various technical matters written in Bank Loan Proposals.
This book is based on writing loan proposals for Largest Public Sector Bank as well as from insights gained by working on loan proposals with various other banks in India.
This book will take you through several aspects of bank loan like:
* Borrower Profile
* Background of Borrower
* Industry / Sector of Borrower
* Analysis of Performance and Financial Indicators
* Analysis of Efficiency Ratios
* Analysis of Fund Flow Statement
* Analysis of Cash Flow Statement
* Analysis of Group Performance and Financial Indicators
* Analysis of Group Cash Flow Statement
* Synopsis of Balance Sheet and comments thereof
* Inter firm Comparison
* Rating of Customer (Internal & External)
* Review of Facilities (CC / LC / BG / TL)
* Warning Signals
* Security Coverage
* Compliance of Sanction Terms
* Statutory Dues and Contingent Liabilities
* Risk and Mitigating Factors
* Pricing Analysis and request for approval
* Defaulters List
* Justification for Working Capital
* Assessment of WC / LC / BG
* Security (Primary / Collateral / Personal Guarantee)
* Other Terms & Conditions
* Due Diligence
* Associate Concerns
and many more...