Thursday, October 25, 2012

Lesson-9 on Credit



Question: What are the rules for Rescheduling of Loan?
Answer:
Application for first rescheduling will be considered only after cash payment of at least 15% of the overdue installments or 10% of the total outstanding amount of loan, whichever, is less;
Rescheduling application for the second time will be considered after cash payment of minimum 30% of the overdue installments or 20% of the total outstanding amount of loan, whichever, is less;
Application for rescheduling for more than two times will be considered after cash payment of minimum 50% of the overdue installments or 30% of the total outstanding amount of loan, whichever is less.
Rescheduling of Demand and Continuous Loan
 
Amount of Overdue Loan
Rates of Down payment

            Up to Tk.1.00 (one) crore
                                     15%
Tk. 1.00(one) crore to Tk. 5.00 (five) crore
            10% (but not less than 
            Tk.15.00 lac)
        Tk. 5.00(five) crore and above
             5% (but not less than 
             Tk.50.00 lac)
Question: What are the rules for Loan to Director of own Bank?
Answer:
The total amount of the loan facilities extendable to a Director or to his relatives should not exceed 50% of the paid-up value of the shares of that bank held in Director's own name.
Subject to compliance of the conditions mentioned in paragraph No.1 above, loan facilities in excess of Tk.50 lacs (including all direct or indirect loan facilities such as bank loan, all types of contingent liabilities like Letter of Credit and performance bond, bid bond or guarantee etc.) in favor of any Director or his relatives or proprietorship or partnership firms and private or public limited companies wherein those persons have interests, can be extended obtaining no-objection from Bangladesh Bank. Besides, subject to the limit as outlined above, if the amount of direct loans   like Cash Credit, Overdraft, LIM, Pre-shipment Credit, LTR etc. is more than Tk.10 lacs, no-objection from Bangladesh Bank is to be obtained.
Question: What are the difference between Hire Purchase and Lease Finance?
Answer:

Hire Purchase is a type of installment credit under which the customer agrees to take the goods on hire at a stated rental, which is inclusive of the repayment of Principal as well as interest for adjustment of the loan within a specified period.

Lease Financing is one of the most convenient sources of acquiring capital machinery and equipment whereby a customer is given the opportunity to have an exclusive right to use an asset usually for an agreed period of time against payment of rental. It is a term financing repayable by lease rental.

Question: What are the maximum allowed periods for allowing DP L/C for different type of import?
Answer:
l       Capital machinery imports on up to 360 days usuance basis
l       Industrial raw materials imports for own use of industrial importers  on up to 180 days usance basis
l       Import of coastal vessels including oil tankers, and oceangoing vessels including those procured for scrapping on up to 360 days usance basis
l       Import of agricultural implements and chemicals fertilizers on up to 180 days basis
l       Import of life saving drugs on up to 90 days usuance basis.
For such deferred payment imports, the prices must be internationally competitive and usuance interest if any should not be at rate higher than the LIBOR for the relative period or the equivalent rate prevailing in the currency of the country of the supplier.


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