Home - Loans & Advances - Loan FAQ

Loan FAQ

How To Calculate Security Coverage Ratio ?

security-coverage-ratio

Security Coverage Ratio  – This is the most required terminology in the field of loan assessment. Majority of loan inclusive of Term loan and SODH limits are assessed based on this formula. Security or asset coverage ratio is the measurement tools for company debt obligations against its assets. There are many bankers which define the security coverage ratio as the ...

Read More »

How Does RBI Rate Cut Impact EMI of Loan ?

Lower Interest Rate

How Does RBI Rate Cut Impact EMI of Loan ? – Reserve Bank of India has cut the repo rate in their bi monthly review for year 2016-17 by 0.50% to 6.50% present. After the reduction of Repo Rate many of the leading commercial banks in India like SBI, Syndicate Bank, ICICI Bank, HDFC bank, PNB, Bank of India, Bank of ...

Read More »

How To Calculate Loan Monthly Reducing Balances Interest?

How To Calculate Loan Monthly Reducing Balances Interest? – Number of time lender promote their loan products quoting Reducing Balance EMI. This is the method used by Public Sector Bank for various loan products mainly MSME Business Loan, Overdaft, Housing loan, Credit Cards etc. What exactly the Monthly Reducing Balance Method of EMI calculation ? Calculation of Interest Payable Per ...

Read More »

How To Calculate NIM (Net Interest Margin)?

NIM calculation

The Net Interest Margin is the difference of Interest Income generated through various sources and expenses made out on interest to lenders on various items like deposit etc. Click Here - Buy Online - Great Offers Today For the latest Banking updates, follow AskBankings on Twitter, Facebook, and subscribe to our YouTube channel Get Daily Updates On Banking, Enter your ...

Read More »

How Does accepting OTS effect on Credit History ?

One Time Settlement Scheme , OTS effect on Credit History of an Individual future credit history : Just as all information about credit availed (amount availed, payments, defaults etc) is reported to Credit Information Companies (CICs), the fact that the borrower has closed a loan account after accepting an OTS is also reported to CICs. The bank is required to ...

Read More »

When will bank return the securities after closure of loan ?

How much time bank would take in returning the title deeds /securities after closure of loan. Banks should return all the securities / documents/title deeds to mortgaged property within 15 days of the repayment of all dues agreed to or contracted. If any right to set off is to be exercised for any other claim, the bank will give due ...

Read More »

Do I need to Insure the Loan from Bank ?

Insure the Loan from Bank – Yes. One will have to insure the property etc. as required by the bank during the tenure of the loan. However, banks cannot insist on your obtaining insurance cover from any particular provider. Click Here - Buy Online - Great Offers Today For the latest Banking updates, follow AskBankings on Twitter, Facebook, and subscribe ...

Read More »

What is Collateral Security ?

Collateral Security – This is generally defined as additional security borrower offers a lender to secure a loan. Banks may take some additional securities which are called collateral securities. Collateral could be in the form of guarantee from one or two persons, assignment of life insurance policies, lien over shares, and units or other securities or mortgage of immovable property. These additional ...

Read More »