Introduction An advance made by a bank is generally covered by primary or collateral securities. The effectiveness of the security depends on the nature of security. The securities can be classified into two aspects, economic and legal aspects. The economic aspect covers … [Read more...] about TYPES OF SECURITIES AND THEIR CHARACTERISTICS IN BANKS
MORTGAGE – AN OVERVIEW
Introduction To safeguard their advances, a bank accepts different types of securities during the lending and creates a charge upon them. When land/buildings and fixed assets which are permanently fastened to the earth is offered as a security, it is charged by a mortgage in … [Read more...] about MORTGAGE – AN OVERVIEW
FORFAITING SERVICES – AN OVERVIEW
What is Forfaiting? Forfaiting in French means to give up one’s right. Thus, in forfaiting the exporter hands over the entire export bill with the forfaiter and obtains payments. The exporter has given up his right on the importer which is now taken by the forfaiter. By doing … [Read more...] about FORFAITING SERVICES – AN OVERVIEW
FACTORING FINANCE- AN OVERVIEW
Factoring finance in India Factoring is one of the upcoming sources of finance for SMEs in India. It is particularly, relevant if a company is growing daily and when new customers are added regularly; there are chances of ending up with huge invoices. This problem often directs … [Read more...] about FACTORING FINANCE- AN OVERVIEW
THE LAW OF LIMITATION
Banks and financial institutions finance the borrower after executing the security documents. On default of the loan, the bank and FI have to initiate recovery action and file suit against the borrower. The recovery act and court only permit action if the claim is within the … [Read more...] about THE LAW OF LIMITATION