37 NRB’s who have returned home within last three years.
Key Features of NRB Utshaho Loan It has a term loan facility
Clients age limit 18years to 55years
Loan limit is BDT -1,000,000 to BDT -10,000,000 secured by mortgage Loan category:
1. NRB Utshaho term loan
2. NRB Utshaho working capital loan.
For maximum 60months or 5years Here processing fee is low
Offer mortgage-backed security facility Joint borrower or client allowed
Monthly installment payment is equal.
38 Speculation the executives is a self-motivated field where a definite standard of long-range arranging is expected to allocate the reserve in various field and to limit the hazard and amplifying the arrival on the contributed store. Ceaseless supervision, observing and follow-up is exceptionally required for guaranteeing the expedient repayment and lessening the default .The general accomplishment in the venture the executives relies upon the bank's advances.
Subsequently, while investigating speculation approach venture technique and efficiency.
Borrowing money can help us to do things, but the process can be complicated .Mistakes cam be expensive ,and they can cause our loan request to be rejected .For this reason every bank follow some steps to maintain a proper process without any mistake .These steps are as follows:
1. Finding prospective loan clients.
2. Evaluating a prospective client’s character and sincerity of purpose.
3. Making site visits and evaluating a client’s credit record.
4. Evaluating prospective client’s financial condition.
5. Measuring possible loan collateral and signing the loan agreement.
6. Monitoring compliance with the loan agreement and other client service needs.
1. Finding prospective loan clients
Most loans to individual arise from a direct request from a client who approaches a member of the lender’s staff and asks to fill out a loan application.There are some procedure activities of applications.These are given below:
1. Measuring capital requirements . 2. Forming bank loan applications 3.Applying for a bank loan.
4.Closing the bank loan.
5.Bank loan service and reporting.
6.Bank loan analysis.
2. Evaluating a prospective client’s character and sincerity of purpose
©Daffodil International University
39 Once a client decides to request a loan ,an interview with a loan officer usually follows ,giving the client the opportunity to explain his or her credit needs.That interview is particularly important because it provides an opportunity for the loan officer to assess the client’s character and sincerity of purpose.
If the client appears to lack sincerity in acknowledging the need to adhere to the terms of a loan,this must be recorded as a strong factor weighing against approval to the loan request.
3. Making site visits and evaluating a prospective client’s credit record
IT a business or mortgage loan is applied for ,a loan officer often makes a site visit to assess the clint’s location and the condition of the property and to ask clarifying questions.The loan officer may contact other creditors who have previously loaned money to this client to see what their experience has been.A previous payment record often reveals much about the client’s character ,the sincerity of purpose and sense of responsibility in making use of credit extended by a lending institution.
4.Evaluating a prospective client’s financial condition.
If all is favourable to this point,the client is asked to submit some crucial documents the lender or bank needs in order to fully evaluate the loan request ,including complete financial statements and in the case of a corporation,board of director’s resolutions authorizing the negotiation of a loan with the bank.
Once all documents are on file ,the lender’s credit analysis division conducts a throughout financial analysis of the applicant,aimed at ascertaining whether the client has sufficient cash flow and backup assets to repay the loan.
The credit analysis division then prepares a brief summary and recommendation,which goes to the suitable loan committee for approval.
On large loans, members of the credit analysis division may give an oral presentation and conversation will ensue between staff analysis and the committee over the strong and weak points of a loan request.
5.Measuring possible loan collateral and signing the loan agreement
If the loan committee approves the client’s request ,the loan officer or the credit committee will usually check on the property or other assets to be pledged as collateral in order to assure that the bank has immediate access to the collateral or can acquire title to the property involved if the loan agreement has defaulted. ©Daffodil International University
40 Once the loan officer and the loan committee of the bank are satisfied that both the loan and the proposed collateral are sound ,the note and other documents that make up a loan agreement are prepared and signed by all parties to the agreement.
6. Monitoring compliance with the loan agreement and other client service needs
The new agreement must be monitored continuously to ensure that the terms of the loan are being followed and that all required payments of principal and interest being made as promised, for larger commercial credits ,the loan officer will visit the client’s business periodically to check on the firm’s progress and see what other services the client may need.
Usually a loan officer or other staff members enter information about a new loan client in a computer file known as a customer profile or client profile.
This profile shows what services the client is currently using and contains other information required by management to monitor a client’s progress and financial service needs.