Banking Terms – Loans Archive

Incremental Cash Reserve Ratio (I-CRR) 

Incremental Cash Reserve Ratio (I-CRR) is a temporary measure announced by the Reserve Bank of India (RBI) to absorb surplus liquidity from the Indian banking system. This reserve is in addition to the Cash Reserve Ratio (CRR)

CGTMSE Coverage for Micro and Small Enterprises

CGTMSE coverage for Micro and Small Enterprises is an initiative of the Government of India and SIDBI to ensure bank credit to Micro and Small Enterprise (MSE) without the insistence for collateral securities or third party guarantees.

Revised MSME Classification norms & Stimulus package

To boost MSME sector, the government has decided to amend MSMED act 2006 to revise the MSME classification norms. Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 presently classifies manufacturing and service enterprises into three categories

General Lien and Particular Lien

Lien is defined as the right possessed by a person to retain or detain the goods or property belonging to another person for the non-fulfillment of an obligation by that other person. Two kinds of lien are

Title Deed and EM with Laminated Title Deed

Title deed is a deed constituting the evidence of a person’s legal ownership of an asset or property. Deed represents an instrument containing details of legal transfer, bargain or contract.  The term title deed is normally used

Different Types of Mortgages-A Comparison    

Mortgage is defined as transfer of interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt or the performance

MCLR -Marginal Cost of Funds Based Lending Rate 

MCLR, Marginal Cost of Funds Based Lending Rate System interest regime came into effect on April 1, 2016. This was a refined version of Base Rate system announced by RBI to further enhance the transparency of credit

Lending Rates- PLR, BPLR and BR- An Overview

The interest rate on lending was de-regulated by RBI in October 1994. This was as part of the financial sector reforms initiated in India in 1991. Since 1994, RBI has introduced various benchmarks and guidelines with regard

External Benchmarking of Interest Rates

Fixing interest rate in relation to an external benchmark was proposed by RBI while announcing the monetary policy review held on December 5, 2018. Banks were suggested to adopt this method for new floating rate loans extended

Hypothecation And Safeguards By Banks 

Hypothecation is the most famous method adopted by banks in India for security creation. This method is adopted while extending cash credits for raising working capital and term loans for acquiring movable assets. Hypothecation as a method