TOPIC

BANKS LOAN SUBMITTED BY POOJA.C.BALOCHIA SUBMITTED TO UNIVERSITY OF MUMBAI PROJECT GUIDE: PROF.GURUNATHAN PILLAI T.Y.B.COM {BANKING AND INSURANCE} SEM-V RAJASTHANI SAMMELANS GHANSHYAMDAS SARAF GIRLSS COLLEGE, AFFILLIATED TO UNIVERSITY OF MUMBAI ACCREDITED BY NAAC WITH A GRADE AND DURGADEVI SARAF JUNIOR COLLEGE {ARTS & COMMERCE} S.V ROAD MALAD {W}, MUMBAI-400064 YEAR 2010-2011

DECLARATION I Ms.POOJA.C.BALOCHIA student of Ghanshayamdas saraf Girls College of Arts & Commerce, Malad {W}.T.Y.B.I {Semester v}, Has completed project of BANKS LOAN in the academic year 2010-2011.This information submitted is true and original to the best of my knowledge.

Date Signature of Student

RAJASTHANI SAMMELANS GHANSHYAMDAS SARAF GIRLSS COLLEGE, AFFILLIATED TO UNIVERSITY OF MUMBAI ACCREDITED BY NAAC WITH A GRADE AND DURGADEVI SARAF JUNIOR COLLEGE {ARTS & COMMERCE} S.V ROAD MALAD {W}, MUMBAI-400064. CERTIFICATE I Prof.GURUNATHAN PILLAI hereby certify that Ms.POOJA.C.BALOCHIA of Ghanshyamdas saraf Girls College {Arts & Commerce} bachelor of Banking & Insurance of TYBI {Semester v} has completed project on BANKS LOAN In the academic year 2010-2011.This information is true and original to the best of my knowledge. External examiner Date Project coordinator Date Principal College seal

ACKNOWLEDGEMENT I would like to thank University of Mumbai and my college for giving me this opportunity for taking such a challenging project, Which has enhanced my knowledge about BANKS LOAN I gratefully acknowledge and express deep appreciation to many people who have made this project possible. Mere thanks to Prof. GURUNATHAN PILLAI my project guide without his support, motivation and suggestion this project would not have been possible.I wish to thank her for all useful discussion and timely suggestion of related topic and valuable help during the project. Also I would like to thank the informal but related help provided by my friends to me.

Date Signature of student

TOPIC:BANKS LOAN

SR NO 1

INDEX

PG NO

meaning, definition, history,

Regional banks benefit by avoiding loan trouble

1-9

2 3

Types of banks loan, advantages and disadvantages of loans Introduction of home loan, Meaning, H.D.F.C HOME LOAN(Current rate), Advantages of home loan,Disadvantages of home loan Meaning of payday loan, Advantages and Disadvantages, Non performing asset, Types, secured and unsecured loans Two wheeler loan,loan modification, case study

10-19 20-27

4 5 6

28-35 36 -40 41-44

45-52

8 9

Conclusion Annexure BIBLOGRAPHY

53-54 55

EXECUTIVE SUMMARY AN OBJECTIVE APPROACH FOR ESTIMATING FAIR VALUES OF BANK LOANS USING THE OBSERVABLE INFORMATION PROVIDED. BANK LOANS IS IMPORTANT TO INVESTORS, CREDITORS,REGULATORS,AND OTHER INTERESTED PARTIES. MAIN OBJECTIVE IS HOW THE LOANS PLAY IMPORTANT ROLE IN THE BANKS SECTOR AND HOW THIS LOAN IS USEFUL TO THE BANK AS WELL AS CUSTOMERS.

MEANING
It easy facility where by a lumpsum amount borrower,which is repayable after an agreed period short term,medium term & long term loans are granted by the commercial banks for personal &commercial purpose.they are generally sanctioned against a security. Interest is charge by a banks on the total amount of the loan whether used or not.loans that are granted for a period upto five years are called short term loans,loans granted between 5 to7 years are called medium term loans and loans granted for more than 7 years are called long term loan. A loan is a kind of advance made by a bank to the customer with or without security.it is given for a fixed period at an agreed rate of interest.the bank makes a lump sum payment to the borrower or credits his deposit account with the amount of advance.repayments are made in instalments or at the expiry of a certain period.the loan may be a term loan or demand loan.the payment of term loan repayable with in 1 to 5 years. The demand loan is payable on demand &it is for a short period.Advances The term loan refers to the amount borrowed by one person from another. The amount is in the nature of loan and refers to the sum paidto the borrower. Thus. from the view point of borrower, it isborrowingand from the view point of bank, it is lending. Loan may be regarded as credit granted where the money is disbursed and its recovery is made on a later date. It is a debt for the borrower. While granting loans, credit is given for a definite purpose and for a predetermined period. Interest is charged on the loan at agreed rate and intervals of payment. Advance on the other hand, is a credit facility granted by the bank. Banks grant advances largely for short-term purposes,such as purchase of goods traded in and meeting other short-term trading liabilities. There is a sense of debt in loan, whereas an advance is afacility being availed of by the borrower. However, like loans,Advances are also to be repaid. Thus a credit facility- repayable in

instalments over a period is termed as loan while a credit facility repayable within one year may be known as advances. However, in the present lesson these two terms are used interchangeably.Utility of Loans and Advances Loans and advances granted by commercial banks are highly and beneficia,individuals,firms,companies and industrns. Thegrowthrial conce and diversification of business activities are effected to a large extent through bank financing. Loans and advances granted by banks help in meeting short-term and long term financial needs of business enterprises.We can discuss the role played by bank a) Loans and advances can be arranged from banks in keeping with the flexibility in business operations. Traders, may borrow money for day to day financial needs availing of the facility of cash credit, bank overdraft and discounting of bills. The amount raised as loan may be repaid within a short period to suit the convenience of the borrower. Thus business may be run efficiently with borrowed funds from banks for financing its working capital requirements. (b) Loans and advances are utilized for making payment of current liabilities, wage and salaries of employees, and also the tax liability of business. (c) Loans and advances from banks are found to be economical for traders and businessmen, because banks charge a reasonable rate of interest on such loans/advances. For loans from money lenders, the rate of interest charged is very high. The interest charged by commercial banks is regulated by the Reserve Bank of India. (d) Banks generally do not interfere with the use, management and control of the borrowed money. But it takes care to ensure that the money lent is used only for business purposes. (e) Bank loans and advances are found to be convenient as far as its repayment is concerned. This facilitates planning for future and timely repayment of loans. Otherwise business activities would have come to a halt. (f) Loans and advances by banks generally carry element of secrecy

DEFINITION
Definition: Money borrowed that is usually repaid with interest
The most common type of loans come from banks, which exist to lend money, so it's no surprise that banks offer a wide variety of ways to fund a business's growth. Here's a look at how lenders generally structureloans, with some common variations: A loan that a business owners gets from a bank Although many business owners who need financing will automatically think to turn to a bank for that funding, traditionally, the paperwork and processing costs involved in making and servicing loans have made the small loans most entrepreneurs seek too costly for big banks to administer. Put plainly, a loan under $25,000--the type many startups are looking for--may not be worth a big bank's time. A bank loan to a company, with a fixed maturity and often featuring amortization of principal. If this loan is in the form of a line of credit, the funds are drawn down shortly after the agreement is signed. Otherwise, the borrower usually uses the funds from the loan soon after they become available. Bank term loans are very a common kind of lending.

History of loan
In recent years, however, the relationship between banks and small businesses has been improving as more and more banks realize the strength and importance of this growing market. With corporations and real estate developers no longer spurring so much of banks' business, lenders are looking to entrepreneurs to take up the slack. Many major banks have added special services and programs for small businesses; others are streamlining their loan paperwork and approval process to get loans to entrepreneurs faster. On the plus side, banks are marketing to small businesses like never before. On the downside, the "streamlining" process often means that, more than ever, loan approval is based solely on numbers and scores on standardized rating systems rather than on an entrepreneur's character or drive.

TYPES OF LOANS Line-of-credit loans. The most useful type of loan for a small business is the
line-of-credit loan. This is a short-term loan that extends the cash available in your business's checking account to the upper limit of the loan contract. You pay interest on the actual amount advanced from the time it is advanced until it is paid back. Line-of-credit loans are intended for purchases of inventory and payment of operating costs for working capital and business cycle needs. They are not intended for purchases of equipment or real estate.

Installment loans. These bank loans are paid back with equal monthly
payments covering both principal and interest. Installment loans may be written to meet all types of business needs. You receive the full amount when the contract is signed, and interest is calculated from that date to the final day of the loan. If you repay an installment loan before its final date, there will be no penalty and an appropriate adjustment of interest.

Balloon loans. These loans require only the interest to be paid off during the life of the loan, with a final "balloon" payment of the principal due on the last day. Balloon loans are often used in situations when a business has to wait until a specific date before receiving payment from a client for its product or services. Interim loans. Interim financing is often used by contractors building new facilities. When the building is finished, a mortgage on the property will be used to pay off the interim loan.

Secured and unsecured loans. Loans can be secured or unsecured. An

unsecured loan has no collateral pledged as a secondary payment source should you default on the loan. The lender provides you with an unsecured loan because it considers you a low risk. A secured loan requires some kind of collateral but generally has a lower interest rate than an unsecured loan. The collateral is usually related to the purpose of the loan; for instance, if you are borrowing to buy a printing press, the press itself will likely serve as collateral. Loans secured with receivables are often used to finance growth, with the banker lending up to 75 percent of the amount due. Inventory used to secure a loan is usually valued at up to 50 percent of its sale price. Although the SBA doesn't actually loan money itself, it does provide loan guarantees to entrepreneurs, promising the bank to pay back a certain percentage of your loan if you're unable to. Banks participate in the SBA program as regular, certified or preferred lenders. The most basic eligibility requirement for SBA loans is the ability to repay the loan from cash flow, but the SBA also looks at personal credit history, industry experience or other evidence of management ability, collateral and owner's equity contributions. If you own 20 percent or more equity in the business, the SBA asks that you personally guarantee the loan. After all, you can't ask the government to back you if you're not willing to back yourself. Here's a quick look at the numerous loan programs offered by the SBA for growing businesses:

The 7(a) Loan Guaranty Program. This is the primary SBA loan program. The SBA guarantees up to $750,000 or 75 percent of the total loan amount, whichever is less. For loans of less than $100,000, the guarantee usually tops out at 80 percent of the total loan. A 7(a) loan can be used for many business purposes, including real estate, expansion, equipment, working capital or inventory. The money can be paid back over as many as 25 years for real estate and 10 years for working capital. Interest rates are a maximum of 2.75 percent if over seven years. The SBA LowDoc Program. This is a special 7(a) loan promising quick processing for amounts less than $150,000. "LowDoc" stands for "low documentation," and approval relies heavily on your personal credit rating and your business's cash flow. LowDoc loan proceeds can be used for many purposes. Applicants seeking less than $50,000 are required to complete only a one-page SBA form. Those seeking $50,001 to $150,000 submit the same short form, plus supply copies of individual

income tax returns for the previous three years and financial statements from all guarantors and co-owners. The SBA guarantees a 36-hour turnaround on these loan requests. The SBA Express Program. This is a close cousin of the LowDoc, also offering loans of up to $150,000. However, SBA Express gets you an answer more quickly because approved SBA Express lenders can use their own documentation and procedures to attach an SBA guarantee to an approved loan without having to wait for SBA approval. The SBA guarantees up to 50 percent of SBA Express loans. CAPLine loans. These provide working capital through a selection of revolving and nonrevolving lines of credit. CAPLine loans are guaranteed by the SBA up to $750,000 or 75 percent of the total loan amount, whichever is less. The CAPLine program includes variations for seasonal businesses, companies that need credit to complete a large contract, and builders and small companies that can't meet requirements for other financing. The SBA's Minority and Women's Pre-Qualification Loan programs. These help women and minority entrepreneurs pre-qualify for loans of up to $250,000. Private intermediary organizations chosen by the SBA help eligible entrepreneurs complete a loan application. With the SBA's guarantee attached, the bank is more likely to approve the loan. The Microloan program. This program helps entrepreneurs get very small loans, from less than $100 to as much as $25,000. The loans can be used for machinery and equipment, furniture and fixtures, inventory, supplies and working capital, but not to pay existing debts. Microloans are administered through nonprofit intermediaries using SBA funds. Terms are usually short, and application turnaround time is less than a week. The CDC-504 Loan program. This program provides long-term, fixedrate loans of up to $1 million for financing fixed assets, such as land and

buildings. CDC-504 Loans are made through nonprofit Certified Development Companies. The program is designed to enable small businesses to create and retain jobs.
A type of loan available from banks, finance companies and other financial institutions, generally for purposes such as buying a car, boat or furniture. Funds are advanced (lent) to the customer for a fixed period, at a variable or fixed rate of interest with repayments calculated at the outset on the basis of monthly instalments. s in the business world by way of loans and advances as follows: a) Loans and advances can be arranged from banks in keeping with the flexibility in business operations. Traders, may borrow money for day to day financial needs availing of the facility of cash credit, bank overdraft and discounting of bills. The amount raised as loan may be repaid within a short period to suit the convenience of the borrower. Thus business may be run efficiently with borrowed funds from banks for financing its working capital requirements. (b) Loans and advances are utilized for making payment ofcurrent liabilities, wage and salaries of employees, and also the tax liability of business. (c) Loans and advances from banks are found to be economical for traders and businessmen, because banks charge a reasonable rate of interest on such loans/advances. For loans from money lenders,the rate of interest charged is very high. The interest charged by commercial banks is regulated by the Reserve Bank of India. (d) Banks generally do not interfere with the use, management and control of the borrowed money. But it takes care to ensure that the money lent is used only for business purposes. (e) Bank loans and advances are found to be convenient as far as its repayment is concerned. This facilitates planning for future and timely repayment of loans.Otherwise business activities would have come to a halt.

Regional banks benefit by avoiding loan trouble

Published: Sunday, June 27, 2010, 12:00 PM Without attracting much notice, regional bank stocks are having a banner year.They are up 28 percent through June 18, ranking among the best of the 154 industry groups in the Standard & Poors 500 Index. This hot performance was achieved in a cool market: The S&P 500 as a whole is close to unchanged for the year.Small and mid-sized banks tend to have fewer derivative-securities risks than money-center banks do. Many of the regional banks avoided the stupidity of no-documentation loans and the treacherous waters of subprime lending.The regional banks I like now arent exactly household names. They include Bank of Hawaii in Honolulu; First of Long Island in Glen Head, N.Y.; and Republic Bancorp in Louisville, Ky.Should you consider investing in bank stocks even after they have had a big move this year? In a word, yes. Financial stocks fell so hard in 2008 that even after a substantial bounce in 2009 and 2010, many remain moderately priced.The big question isnt whether regional bank stocks are still cheap. Clearly, many are. The real issue is whether the banks can restore their profits to a decent level.Last week, I studied data for 238 publicly traded U.S. banks, using the Bloomberg database. Profitability measures for most still looked feeble, even though the Federal Reserve has been giving banks a hand by keeping short-term interest rates unusually low.

Rich Spread
Banks make most of their profits by lending money at a higher rate than they pay to borrow it. The spread, of course, is the banks life blood. By keeping rates low for an extended period, the Fed is making sure banks dont have to pay much to borrow.

Banks I Like
Lets examine a trio of regional banks that I like. None of them has fully participated in this years bank-stock rally. Two of them have barely budged. I think that is more a function of analyst neglect than lack of merit.Bank of Hawaii mainly serves its home state, and has the benefits and drawbacks associated with an economy dependent on tourism. The bank places lots of automated-teller machines in McDonalds restaurants, something Im surprised we dont see more

of here on the mainland.Through 2008, Bank of Hawaii showed earnings per share increases eight years in a row. In 2009, earnings fell to $3 a share from $3.99 a year earlier; analysts expect a rebound to about $3.28 this year. Non-performing loans are 0.8 percent of all loans, putting the institution in the top 10th of all U.S. banks in this regard.As a sweetener, it has a dividend yield of 3.7 percent.First of Long Island has an even lower percentage of non-performing loans, at 0.5 percent. The company marched through the recession with no downturn in earnings, and analysts expect it to post record earnings of $2.30 a share this year, up 25 percent from last year. The banks dividend yield is decent, at about 3 percent.Republic Bancorp operates mainly in Kentucky, and also does business in Indiana, Ohio and Florida. It has shown exceptional growth and profitability in the past, but has drawn fire on overdraft charges.In 2009 the Federal Deposit Insurance Corp. issued a cease-and-desist order telling the bank to stop charging what it said were excessive rates on tax-refund loans.

Disclosure note: I have no long or short positions in the stocks discussed here, personally or for clients.John Dorfman, chairman of Thunderstorm Capital in Boston, is a columnist for Bloomberg News. The opinions expressed are his own. His firm or clients may own or trade securities discussed in this column.

ADVANTAGES
competitive rates of interest and on mutually understood and accepted repayment terms, as compared to unconventional lenders. Easy availability: Considering that lending institutions like banks must always keep their depositors money working for them and earning more money and interest than it pays out to depositors, bank loans should, in theory, always be available to anyone seeking one. Good lending terms and relations with the bank: If a borrower meets the banks lending criteria to the letter, he could benefit with a lower rate of interest and relaxed and easy repayment terms. Add to this the bonus of having a good working relationship with the bank. Speed: If the borrower has all the appropriate documentation, any bank can process his application within an hour. Uses: A borrower can use a bank loan for a number of reasonseither for setting up a business, or to buy home improvement goods or to go on a holiday. In fact, a bank loan is a financial package which helps you tide over a difficult time or set up business or invest in stocks. Considering it is a loan, it means that eventually you will have to pay the bank back within a stipulated time at a predetermined rate of interest. No need for collateral: For a personal loan, a borrower neednt produce any security or collateral. Besides, even the documentation is very little, as compared to other kinds of loans, thereby expediting the processing time. No need to specify use of the money: In case of a personal loan, one need not spell out what the money is going towards.

DISADVANTAGES
Borrowers over-borrow: People sometimes over borrow money and get caught in their own debt. Often, this can lead to a shortfall in cash flow and payments can take precedence over income. To prevent this, loan repayments are restricted to a set percentage of a borrowers income. Prepayment penalty: Often, loans come with a prepayment penalty which prevents the borrower from paying the loan earlier than the stipulated date without incurring any extra costs. Restrictions: Banks levy a number of restrictions on the transaction. This

includes having a good credit history before applying for a loan, and there are often restrictions about how the money should be used. Finally, the pros of taking a bank loan far outweigh the cons. Its best for an investment since it offers a hedge against any financial problem as a result of which you find you cannot pay back the bank. But if you have a solid investment, you can easily pay back your loan

INTRODUCTION OF HOME LOANS

home is often their most valued ownership and banks have little fear that the standard home buyer will be unsuccessful to make payments putting that possession at risk. On these grounds, there are attractive secured loan options offered to homeowners using their home as guarantee.

MEANING
A home is often the largest asset of a individual or couple. The financial arrangement, or mortgage, planned to purchase the home are secured by the home itself allowing lenders to offer very competitive interest rates. There are a wide range of mortgage options, but mortgages are all similar in that they use the actual property youre purchasing as collateral. Once youre in possession of your home and you begin paying down the mortgage and the value of the assets increases, your equity in the property increases. A home equity loan allows you to borrow against this equity effectively creating a second mortgage or lien on the home. The funds youve borrowed are secured by the home meaning a default on your original mortgage or the home equity loan gives the bank the option to foreclose in order to recover their loss. largest secured home loan is the mortgage used to purchase the home initially or as part of a refinance. There are a range of mortgage options including fixed and variable rate loans, government assisted loans and interest only loans. But all of these home loans are secured by the home itself. Very few people are in a position to pay cash for a new property. While there is satisfaction in owning a property outright, there are also benefits to leaving cash invested in other instruments and obtaining a mortgage even if you dont technically need to. In many areas, the interest paid on a home loan is a huge tax deduction. By owning your home outright, you are not able to take advantage of this tremendous tax savings. By taking out a loan for the purchase of your home, youll effectively be paying more for the home over time, but you can counteract this by investing the cash you might have used for the home purchase in an account or instrument paying more interest than your mortgage. If you arrange a mortgage for a new home with an interest rate of six percent, but invest the cash in a combination of instruments paying an average of seven percent over time, youll not only be earning a net profit of one percent on your investments, youll

H.D.F.C HOME LOAN

Loans Features & Benefit Loan - Home loans for individuals to purchase (fresh / resale) or construct
houses. Application can be made individually or jointly. HDFC finances up to 85% maximum of the cost of the property (Agreement value + Stamp duty + Registration charges) based on the repayment capacity of the customer.

Home Improvement Loan - HIL facilitates internal and external repairs and
other structural improvements like painting, waterproofing, plumbing and electric works, tiling and flooring, grills and aluminium windows. HDFC finances up to 85% of the cost of renovation (100% for existing customers) subject to market value of the property..

Home Extension Loan - HEL facilitates the extension of an existing dwelling

unit. All the terms are the same as applicable to Home Loan.

Land Purchase Loan - Be it land for a dream house, or just an investment for
the future, HDFC Land Purchase Loan is a convenient loan facility to purchase land. HDFC finances up to 85% of the cost of the land (Conditions Apply). Repayment of the loan can be done over a maximum period of 15 years

ADVANTAGES OF HOME LOANS.

When its time to buy a new home, VA loans offer those who qualify some of the best advantages available on the mortgage market today. These specialized loans for Americas veterans put homeownership within reach by offering low interest rates, no money down options and more. At MyVaRefinance.net, we are proud to specialize in VA home loans. We offer a variety of solutions for our clients and offer the service and respect our veterans deserve. MyVaRefinance.net was founded on the principles of The Golden Rule and we take our promise to deliver the best in service seriously.

So, why should you consider VA home loans or a VA refinance?

As a result of changes to the mortgage industry, options for a conventional loan with $0 down have evaporated and VA loans are one of the only $0 down home loan options still available. You can also save money each month since you do not have to pay PMI. PMI is private mortgage insurance and can cost hundreds of dollars per month. Plus, you can even qualify for lower VA mortgage rates by using your VA benefits. Some people believe a VA loan involves red tape and requires more work. We specialize in VA loans and have streamlined the process to save you time and

money. This is why so many families take advantage of their VA benefits and get a VA home loan instead of a conventional loan.

Monthly Payment - Save Big Every Month

Since the loan is backed by the government, banks do not require PMI (private mortgage insurance), an added monthly expense required for conventional loans where the borrower finances more than 80% of the home's value. Banks will also offer a lower interest rate to a VA borrower (typically 0.5%-1.0% reduction vs conventional). Interest rates are based on the banks capital risk should the loan go into default, but because a VA loan is backed by the government the bank takes less risk and is able to offer a lower interest rate to you. A lower rate combined with no PMI can substantially lower your monthly payment as seen in the chart below.

A Streamlined Process
Many people believe VA home loans may require more work on their part. While that may be true if you work with a local broker, we specialize in VA loans and have developed a streamlined process for you. This saves you time while also cutting out the red tape so you can take advantage of your benefits and save money today.

Qualification Standards - VA is More Lenient

The qualification standards for each loan type are very different. Once again, because the loan is backed by the government, banks assume less risk and have less stringent qualification standards for VA loans making them easier to obtain. It is important to know the differences between the loan types and understand your options. Please feel free to explore our website and see why VA mortgage rates are among the best in the industry. When youre ready to begin the process to obtain a loan to finance your dreams, just fill out our 30-second request form. We consider it an honor to help Americas veterans make their dreams come true.

Advantages and Disadvantages of US Payday Loans

In the last decade one of Americas most booming businesses has been companies that specialize in offering payday loans. It is not uncommon to see several different payday loans in nearly every city in the US. Payday loans organizations offer short term loans that are to be paid back, with interest, on the borrowers next payday. While these types of loans can come in handy if a person finds themselves in a financial bind, there are both good and bad aspects of the loan process. Advantages of Payday Loans Payday loans can provide a person with instant cash if they have an unexpected expense occur that cannot wait until their next pay date. If certain expenses such as auto repair bills, unexpected medical needs, or possible disconnection of utilities come up and a person finds they do not have the funds to cover them, a payday loan can help them out of a tight financial spot. Fortunately, these types of loans do not normally require a credit check and can be obtained rather quickly. As long as the borrower has an active, open checking account that does not have a negative balance, proof of regular, recurring income, some proof of identification, and a few good personal references, a payday loan can be easy to obtain. If they have all of these items on hand when they go to the payday loan business, it is possible for a loan to be completed within one hour or less.

Disadvantages of Payday Loans

While payday loans may seem like a great way to have easy money on hand in a very short amount of time, there are some downfalls. Depending upon the borrowers paycheck frequency, they will be required to pay the loan back in full within one week, two weeks, or one month. Not only will they be paying back the amount that was borrowed, but there will also be a fee charged by the payday loan business for processing the loan. Unfortunately, this is where getting a payday loan can begin to get ugly. The fees charged by the payday loan business can be rather large amounts. Most of these businesses charge up to $17.50 for every $100 that is borrowed. For example, if a borrower receives a $300 loan, they can expect to pay back an average of $352.50 to buy back the check that was written to the payday loan

company. If the loan is not paid back by the end of the business day on the prearranged due date, it will be sent to the borrowers bank to be withdrawn from their checking account.

Pros and Cons of Payday Loans Summary

If obtaining a payday loan is a one time occurance, that is paid back in full with no problems on the borrowers next pay date, it can be a helpful service. However, the real problems begin when borrowers find themselves agreeing to pay back more than what is feasible for their budget. If most of the borrowers next paycheck will be spent paying back the payday loan, they may have no choice but to get a second payday loan in order to have enough funds to get by on until their next paycheck arrives. This is how the vicious cycle begins and the borrower may end up repeating the loan process over and over for several months or possibly even years.

What Is the Meaning of Nonperforming Loans?

A nonperforming loan seems simple enough to understand in theory but is subject to various definitions. Generally speaking, a loan is nonperforming when it is not making income for the lender. According to the "Financial Times," the point when a loan is classified as nonperforming by a lender and when it becomes a bad debt depends on local regulations

Types
1. According to an Internal Revenue Service (IRS) issue paper on accrued

interest on nonperforming loans, "Nonperforming loans are those loans which, as a result of the inability of the borrower to meet the contractual terms of the loans, are delinquent and are placed on a non-accrual basis." Non-accrual loans can remain on a lender's books; the lender simply stops accruing interest income on the loan. The IRS notes banks use three general (though not conclusive) criteria to determine whether a loan is delinquent. A loan can be nonperforming when a borrower is 30, 60, or 90 days delinquent in making a payment.

Considerations
2. Banks can also make a partial write-off, and the loan balance will be listed as non-accrual. Another consideration of a nonperforming loan can be when a loan is being renegotiated or restructured. In all of these instances, the loan is not making interest income for the bank. The loan is not performing.

Effects
3. A nonperforming loan has different effects on different lenders. The IRS lists bank guidance for determining when a note is nonperforming for interest payment purposes and taxes owed. In a 1993 loan charge-off guidance letter from the National Credit Union Administration (NCUA) to credit unions, the NCUA gave charge-off requirements for credit unions. A complete charge-off was required for a nonperforming loan more than six months past due when no payment of at least 75 percent of the regular monthly installment had been made in the previous 90 days.

Investors
4. The United States Financial Accounting Standards Board uses the term

"credit impairment" for distressed loans much more than the term "nonperforming loan." A June 2010 FASB summary of a meeting concerning accounting for financial instruments highlights the lack of a hard-and-fast timeline rule when a loan is considered nonperforming. Most investors who met with FASB representatives stated there should be a mandatory cutoff date when nonperforming loans should stop accruing interest. The agreed-to date was 90 days past due. Even with this hard-and-fast recommendation, investors requested the FASB investigate different deadline dates for certain financial instruments.

Global Nonperformance
5. Outside the United States, nonperforming loan definitions also differ widely from country to country. A 2010 study released by the European Bank for Reconstruction and Development (EBRD) found NPL definitions so varied that EBRD researchers compared changes in NPL levels within individual countries, rather than as a group. In the Ukraine, official NPL statistics rose from 3.3 percent in June 2008 to June 2009. The report authors write that banks have been rolling over nonperforming loans because of negative tax treatment of write-downs, leaving the International Monetary Fund to estimate Ukranian NPLs at 30 percent by the end of 2009

Unsecured loan
A loan to a company or individual who provides no collateral, so that the lender is entirely dependent on the borrower's capacity and willingness to repay. In the event of a default, the lender has a claim on the borrower's assets but has to go through a legal process to exercise Unsecured loans are small amounts borrowed from unorganised instituion. Exapmle: Money borrowed from any person or a relative where you can get the money without any security.

. Definition
An arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan (though modern capital markets have developed many ways of managing this risk). l point out the nature of security provided for loans; and l outline the procedure for grant of cash credit, overdraft and discounting of bills of exchange.

Definition of Unsecured Loans By Reagan Elizabeth Doran, eHow Contributor

Loans make up an enormous portion of the financial industry and the economy in general. A loan provides funds to purchase something that cannot be afforded at the time. It is a contract that promises one party will repay the other party. In nearly all cases, interest is also added to a loan. There are basically two loan categories: secured and unsecured. In both secured and unsecured loans, money is borrowed and interest is paidLoans make up an enormous portion of the financial industry and the economy in general.

Secured Loans
1. In a secured loan, the loan is given with the stipulation that an asset could be siezed and sold if the loan is not paid. The asset is used as collateral for the loan. requent items used as collateral are houses, land, cars and jewelry. A common type of secured loan is a mortgage. If the mortgage is not paid, the house can be repossessed by the bank. The bank can then sell it.

Unsecured Loans
2. According to Investopedia, an unsecured loan " is issued and supported only by the borrower's creditworthiness, rather than by some sort of collateral." Unlike a secured loan, an unsecured loan does not require backing by assets. It is usually based on the credit history of the borrower and the borrower's ability to repay. A common type of unsecured loan is a credit card. Other types of unsecured loans are personal loans, lines of credit and bank overdrafts.

Getting an Unsecured Loan

3. Getting an unsecured loan can be more difficult than getting a secured loan if the borrower does not have an established or good credit rating. Although a credit check is not always required, it most often is required to ensure that the borrower has a history of paying off his debt. Depending on the type of unsecured loan the borrower is looking for, it can be applied for either online or in a financial institution.

Considerations
4. When applying for an unsecured loan, one should consider all aspects of the debt. Interest rates and other fees should be examined closely and well understood. The following are some questions that should be asked before taking the loan: Can it be paid off easily in the future? What will the total cost of the item be with interest if only the minimum payments can be made? How long will it take to pay off this debt? How much do I need this item? Sometimes it is better to save for an item than to assume more debt.

Warnings
5. Beware of predatory lending when apppying for an unsecured loan. While there are many legitimate lenders, there are also those who take advantage of the borrower. These lenders charge large fees or unfair high interest rates. Make sure the lender is reputable and all the terms of the contract are read and understood. EDUCATION LOAN
Loan made for college or vocational training expenses, often at a Below Market Rate. Loans backed by the Student Loan Marketing Association (Sallie Mae) are 90% guaranteed for repayment of principal and interest. A guaranteed student loan (called a Stafford Student Loan, after Sen. Robert T. Stafford of Vermont) is insured by a state guarantee agency and reinsured by Sallie Mae. Repayment of a Stafford Student Loan is deferred until after college graduation. An education loan is a loan taken to help pay for an education, usually at a college or trade school, but may also be used to pay for private schools or prep schools as well. The education loan is available in several different types. These are student loans, parent loans and private loans. Loans are also either guaranteed or unguaranteed. Student and parent loans are most likely to be guaranteed by the government, though many agencies work for the government in this respect. Unguaranteed or unsubsidized loans are usually from private lenders only, and usually can only be obtained if one has a good credit score or significant equity

The student loan is usually the best choice education loan for a student whose parents cannot pay for his or her education. While the student remains in school, interest on this type of education loan accrues and is paid for by the government. When the student stops attending school, the education loan is usually paid off in payments. These payments can be quite large if the loan is large, so students should borrow only what they need. A parent education loan is a good choice for parents who dont want their children to end their college career in debt. These can also be guaranteed, meaning that parents dont necessarily have to have great credit scores to get a loan. Unlike the student loan, parents usually begin payments on this education loan right away. Interest rates tend to be relatively low, but a longer repayment schedule means paying quite a bit of interest. The private education loan almost always requires good credit. Many people use the equity in their house to take out such a loan. Unlike the parent and student education loan, the private education loan is not usually need based. Often when students apply for financial aid, they are told they, or their parents, make too much money to qualify. In these cases, those who do not have the money upfront to pay school costs may use equity to obtain loans.

The federal government does not guarantee the private education loan, and payments usually begin on the loan right away. These loans usually have the highest interest rates, as well. If they are taken as part of refinancing a home, they may be more economical. Some adults who work and re-enter school also find themselves needing to take out a private education loan, since they cannot qualify for any other type of loan. Most have to remain working, at least part time, in order to make payments. Because students frequently leave college heavily burdened with debt, it is important to consider how much of a loan one really needs. The less debt contracted, the better. Before applying for an education loan, evaluate the other types of aid that may be available. There are numerous scholarships that go unclaimed each year because no one applies for them. Research into scholarships that are not need-based can often help defer some college expenses, lessening the amount one needs to borrow A student loan is designed to help students pay for university tuition, books, and living expenses. It differs from other types of loans in that the interest rate is substantially lower and the repayment schedule is deferred while the student is still in education. Before accepting any kind of student loan one should be familiar with its basic attributes. loan made for college or vocational training expenses, often at a below market rate . Loans backed by the student loan marketing association (Sallie Mae) are 90% guaranteed for repayment of principal and interest. A guaranteed student loan (called a Stafford Student Loan, after Sen. Robert T. Stafford of Vermont) is insured by a state guarantee agency and reinsured by Sallie Mae. Repayment of a Stafford Student Loan is deferred until after college graduation. UCO BANK'S ATTRACTIVE LOAN SCHEMES Being a Commercial Bank, giving Loans and Advances is among our primary activities. Apart from our participation in meeting both Term Loan and Working Capital requirements of Agriculture sector, Trade and Service sector, Large/Medium and Small Scale Industries sector, Infrastructure sector etc. including taking care of their Export/Import and non-fund based needs like Letter of Credit, Bank Guarantee etc., we have a fairly large basket of loan products specially designed to suit your personal needs. Salient features of some of the more attractive Personal Loan Schemes are described below.

UCO Shelter Education Loan UCO Mortgage UCO Nari Shakti

UCO Car UCO Cash UCO Securities UCO Shopper

UCO Trader UCO Rent UCO Real Estate UCO Pensioner

UCO Emd Loan

UCO Swabhiman Reverse Mortgage Loan Scheme for Senior Citizen

Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)

UCO SHELTER This housing finance scheme brings to you an excellent opportunity to have your own house or flat. The scheme has been carefully tailored to suit your requirements and match your capacity. The reasonable rate of interest that you pay will be calculated on reducing balance, i.e. you do not have to pay interest on the loan installments actually repaid from the date of such repayment. Eligibility You are eligible for a loan under UCO SHELTER singly, or jointly as husband-wife/parentson/parent-daughter, if you are Indian resident having regular source of income. Minimum 21 years of age. Maximum 65 years of age inclusive of repayment period Singly or Jointly as Husband-Wife, Parent-Son & Parent-Daughter Maximum 75 years of age for Senior Citizens availing finance to secure Shelter in Old Age Home against full coverage by Banks own Term Deposit. Purpose Purchase of new independent house/ready built flat for residential purpose. Construction of independent house on the site already owned by the applicant or site proposed to be purchased from own sources. Purchase of old house/flat not more than 30 years old, free from tenancy and constructed as per approved plan. Extension/Repair/Renovation of existing house/flat not more than 50 years old.

Takeover of home loans availed from other banks/FIs subject to certain terms. Furnishing of house to be constructed/acquired with UCO Shelter Loan. Loan for more than one purpose is allowed UCO Shelter Loanee may be allowed to avail personal loan also under certain conditions. Purchase of plot of land for housing purpose under certain conditions. Quantum of loan The quantum of loan will be decided as per loan entitlement subject to a maximum of 85% of the total project cost of construction/purchase price of house/flat. Required margin of 15% may be by way of cost of land. Quantum of loan for furnishing will be 75% of cost of such furnishing subject to a ceiling of 20% of loan eligible for construction/acquisition of house/flat. The area-specific maximum limits for construction/purchase are as under : Rural Areas : Rs.25 Lac Semi-urban/Urban/Metro Areas : Rs.100.00 Lac Maximum limits for Repair/Extension/Renovation are Rs.7.50 lac in rural areas and Rs.25.00 lac in Metro/Urban/Semi-Urban areas. Purchase of Land financing the cost of land in deserving cases upto 50% of cost of land purchased from Urban Development Authorities/Govt. Bodies subject to the ceiling of 30% of the project cost (i.e. Cost of land + Construction Cost). Loan Entitlement Within the above limits, loan entitlement will depend on the following income criteria: Monthly income should be equal to/more than EMI + Rs.4,000/- in case of a family with up to four members Salaried/Non-salaried and agriculturist and banks own staff are entitled for loan With increase in number of members, monthly income requirement goes up progressively by Rs.1,000/- for each additional member. Income of spouse & major children may be considered for enhancing the loan entitlement on their agreeing to stand as guarantor/ co-obligant Loan limit can be enhanced if additional liquid security is offered.

Second Loan- Allowed for repair/renovation/extension of existing house after one year of first loan with minimum margin requirement of 25% Processing Fee 0.5% of the loan amount minimum Rs.1000.00. Only 0.25% payable on issuance of in-principle sanction. Balance amount payable on final sanction. No processing fees for take over loan. Click here for rate of Interest : Repayment The maximum period of repayment is 25 years inclusive of moratorium. However, the monthly interest charged during the moratorium period will have to be paid. The entire loan will have to be adjusted before retirement or 65 years of age, whichever is earlier. Repayment may be made by deduction from monthly salary or by means of post dated cheques. Flexibility in repayment is permissible through stepped up EMIs and in case of farmer borrower, repayment is linked to crop cycles. Both in case of Salaried and non salaried person, repayment period may be enhanced to certain period over and above the prescribed period depending upon repaying capacity of the co-applicant. Prepayment charge 2% of the prepaid amount, if the loan is prepaid within 3 years. No prepayment charges thereafter. However, no pre-payment charges are to levied if loan is pre-paid from own source. Tax Benefits Tax relief on principal and interest components of this loan would be available as per provisions prevailing under Income Tax Act. Insurance Insurance cover on property under UCO Griha Raksha Yojna Scheme of NICL and personal accident benefit to the borrower is available on death only to cover the outstanding balance under UCO Griha Lakshmi Yojana Scheme (UCOGLYS). Group insurance cover to home loan borrowers is available against any type of death from Rs.50000/- to Rs.100.00 lac under UCOGLYS.

UCO CAR

This is an easy finance scheme for purchase of a new car as well as second hand vehicle not older than 5 years and economic life of a vehicle should be taken as 8 (eight) years from the date of manufacture of the vehicle. Eligibility Salaried Persons The applicant must be a permanent employee having completed 2 years of service and remaining period of service of more than 5 years. The minimum monthly take-home pay must be Rs. 7,500/- + EMI. Professional & Businessmen Minimum income should be Rs. 1.20 Lac per annum as per Income Tax Return/Assessment. LIC Policy equal to the amount of loan should be assigned in favour of the Bank. Quantum of loan The amount of loan would be 85% of the cost of vehicle or Rs. 7.50 lacs whichever is lower in case of purchase of new car. For purchase of old car, the maximum quantum would be 60% ( if age of car is more than 4 years old ) and 70% ( if the age of car is upto 4 years old) of the cost of the vehicle or Rs.3.50 lacs maximum. For second hand vehicle "certificate of fitness" and valuation certificate is required. 1% service charge is applicable subject to a ceiling of Rs.1000/- only. Repayment The loan amount together with interest will have to be repaid within a maximum of 60 months. In case where at source deduction is not possible, repayment should be made by post dated cheques in 60 installments. In case of second hand/Pre-used vehicle the loan with interest should be repaid within the residual economic life of the vehicle but not exceeding 36 installments. 0.5% charge is levied on pre-paid amount if loan limit is above Rs. 2 Lac

UCO TRADER

It is a loan for financing working capital and Term Loan needs of Retail and Wholesale trading activities other than Export. Retail and Wholesale trade in various types of commodities (not services) excluding those items which are specifically prohibited/restricted by the Bank, are financed through this scheme. Fund based Advance is granted by way of Cash Credit against

stock as well as Book debt and Term Loan for acquisition of fixed assets to run the trade and business. Eligibility Existing enterprises engaged in business for at least 2 years and earning profit during the last 2 years. New trading unit started by existing UCO Trader borrowers or their close relatives/ allied/associate/connected concern under certain terms New trading units as well as units which have not completed two years can be financed maximum upto Rs.10 lac under certain terms Quantum of loan Minimum Rs. 1 Lac and Maximum Rs 200 Lac Within fund based limit of Rs. 200 lac, term loan up to Rs. 25 lac can also be sanctioned for acquisition of fixed assets. Repayment period of Term Loan not to exceed 60 months. Besides the above quantum of fund based limit, NFB limit by way of Inland LC/Bank Guarantee if needed, may be issued maximum up to 50% of FB working capital limit. Salient features Margin

No margin is required for Cash Credit in case of existing units & 20/25% for new units while computing drawing power Margin for Term Loan, LC & BG is 25% Application is simple; Balance Sheet is not required for limit up to Rs 10 lac and not compulsory for limit below Rs 50 lac subject to certain conditions.

Security

Primary-Hypothecation of stocks and book debt. Collateral-100% for Cash Credit (against stocks only ) and Term Loan, 125% for Cash Credit(against stocks and debtors)

Processing Charges- 0.50% of fund based limit, 0.25% of Non-Fund based limit. For more details please contact your nearest UCO Bank branch.

EDUCATION LOAN

Scope: The scheme extends a helping hand to meritorious students desirous of pursuing basic/higher/professional/technical education either in India or abroad. The parents will become co-borrowers with their dependant (student) if the latter applies for educational loan. Studies in India School education including plus 2 stage. Graduation courses leading to degrees like B.A., B.Sc., B.Com. etc. Post Graduate courses leading to Masters degrees as also Ph.D. Professional courses in Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc. Computer Certificate courses of reputed institutes accredited to Universities or DoE. Courses like ICWA, CA, CFA, etc. Studies Abroad Graduation : Job oriented professional / technical courses offered by reputed Universities. Post Graduation : MCA, MBA, MS, etc. Courses conducted by CIMA London, CPA in U.S.A., etc. Eligibility Applicant must have secured admission to professional/technical course through Entrance Test/Selection Process. Secured admission to foreign University / Institution. No maximum or minimum income is prescribed for parents/family. Age limit : 18 to 25 years for graduation course may be extended from 28-30 years for general and SC/ST candidates respectively.

21 to 28 years for post-graduation course etc. may be extended from 30 -33 years for general & SC/ST candidates respectively. Quantum of loan Need based finance subject to repaying capacity of parents/students with following ceilings : Studies in India : Maximum Rs. 10.00 Lac Studies Abroad : Maximum Rs. 20.00 Lac. The loan amount under the scheme would be for meeting the following expenses : Course Fees Hostel/Boarding Fees including caution deposit/building fund etc. Books, Stationery & Equipment required for the course, including Computers. Examination/Library/Laboratory fees. Travel Expenses/Passage for studies abroad. Security Upto Rs.4.00 lacs No security Above Rs.4.00 lacs Collateral securities by way of suitable 3rd party guarantee or tangible security equivalent to loan amount. Margin Upto Rs. 4 Lac - Nil Above Rs. 4 Lac Studies in India - 5% Studies Abroad - 15% Service Charge : There is no processing fee /no service charge Interest RatesClick here to view the rate of Interest Repayment

The loan will be repaid in 5-7 years after commencement of repayment. There will be moratorium for repayment during "the course period +1 year or 6 months after getting job, which ever is earlier". 1% interest concession may be provided, if the interest is serviced during moratorium period. For more details, please contact your nearest UCO Bank branch.

For more details, please contact your nearest UCO Bank branch.

UCO CASH This is a Personal Loan scheme to meet the domestic needs like marriage, medical, traveling and other social obligations. Eligibility Permanent Employees or those who have completed 3 years of service. Minimum take-home pay should be 40% of gross salary after all deductions including EMI against this loan. Regular income may also be reckoned for eligible quantum. Quantum of loan 90% of the proposed expenditure or Rs. 2 Lacs whichever is lower. Additional amount may be sanctioned within the quantum ceiling to the existing eligible borrowers. Security Loan will be on clean basis with two guarantors Spouse and other than Spouse having equal income with that of the applicant. Click here for Interest Rates Repayment The loan amount with interest is repayable in 48 EMIs through salary deduction of employee borrower. But one year before retirement.

Service Charge : 1% (minimum Rs.500/-) For more details, please contact your nearest UCO Bank branch.

UCO RENT This is a loan against the security of future receivables i.e. assignment of future rent receivable, for productive purposes e.g. augmenting earnings like investing in securities, undertaking repairs & renovation of the property, etc. Eligibility Owners i.e. lessors of houses/flats/godowns/warehouses etc. only are eligible under the scheme. The owner may be an individual, a firm or a company. Properties belonging to cooperative societies are not considered for sanction of loan under the scheme. Quantum of loan Maximum 80% of the total rent receivable during the unexpired period of lease less tax deduction at source. Minimum Rs. 1 Lac Click here for Interest Rates Repayment The repayment period can be extended upto a maximum period of 84 months. Processing fee 1. Fresh Sanctions : 1% of the sanctioned loan amount. 2. Review on run down Balance: Rs.225.00 per lac, Min.Rs.250.00, Max. Rs.56000.00 For more details please contact your nearest UCO Bank branch.

UCO MORTGAGE

Under the scheme credit facilities are considered upto 60% value of the property located in metro/urban/semi-urban centers to meet financial needs of government employees, employees of schools, colleges, PSU, reputed corporate business enterprises, professionals and businessmen with regular source of income and filing IT return against mortgage of their immovable property with clear Title. Eligibility

Maximum age limit of the borrower should be 65 years on the date of application. Loans can be sanctioned in the form of term loan or overdraft.

Quantum of loan Maximum (Rs) 50 Lac Click here to view rate of Interest Repayment Facility Term Loan Overdraft Maximum 84 E.M.I. 15% reduction in the overdraft limit by the end of each year so that advance is completely liquidated by the end of 7th year. Interest should be serviced every month. Salient Features Processing Fee Prepayment Charges

Minimum (Rs) 2 Lac

1% of loan amount 1% of amount prepaid

While determining repayment capacity, income of spouse can also be taken. In that case loan should be in joint names. The condition of maintaining 40% of net take home is applicable to both Salaried and non-salaried person. In case of non-salaried person, their annual Gross Income, as per IT Returns, is to be divided by 12 to arrive at Monthly Gross Income. Like Salaried persons, their NET monthly income after all deductions including monthly installment of proposed Term Loan and/or monthly interest on Overdraft and proportionate principal

amount to the extent of 15% of the O.D. limit/balance should not be less than 40% of their Gross monthly income. If credit facility is granted against building/flat/apartment, the same should not be more than 30 years old.

For more details, please contact your nearest UCO Bank branch.

UCO SECURITIES Under the scheme credit facilities are extended to borrowers against financial securities issued by Central Govt./State Govt./RBI in the form of National Savings Certificates, Kisan Vikas Patra, Govt. Securities and Relief Bonds. Loans are also sanctioned against Life Insurance Policies of Life Insurance Corporation of India and bonds/debentures issued by specific Public Financial Institutions. Eligibility

The securities should be in the name of the borrower or any one of the joint borrowers. The securities should be transferable and can be assigned/pledged in favour of the Bank.

Quantum of loan It will be determined on the basis of discounted face value/maturity value/surrender value of the transferable security at 13.50% (BPLR -1.00%). Click here for rate of Interest Repayment Facility Demand Loan Overdraft Cash Credit For more details, please contact your nearest UCO Bank branch. Loans should be adjusted from the maturity proceeds of securities assigned/transferred

UCO REAL ESTATE Under the scheme advances are extended to the Promoters/Developers of real estate who should be well established and experienced in their line of activities at least for a period of three years. Cooperative Societies are not eligible to be borrowers under the Scheme. Eligibility Only builders of repute, integrity and excellent track record and professionally managed are eligible for such finance. They must have at least 3 years experience in the line and must have successfully completed 2-3 projects. The financial position of the builders/developers as per last audited balance sheet must be satisfactory. Financing would be subject to commercial viability and sufficient cash generation to repay the loan. Pre-requisites a. Details of the project cost and means of finance b. Profitability statement c. Annual Cash Budget for the duration of the loan showing monthly/quarterly cash inflows of the specific project along with repayment schedule d. Audited financial statements for the last 3 years, the current year's estimate and projections for next 3 years or till the completion of the project e. Original Title Deed of the land, detailed estimate of the proposed construction from a Chartered Engineer/Architect and permission from the competent authority of the property in case it is falling under Urban Land Ceiling Act f. Documents like non-encumbrance certificate, certified copy of R.S. Parcha, current, renew/Municipal receipts, Lawyer's opinion on ownership and marketable title and sanctioned plan. g. The Bank should enter in to a legally vetted tripartite agreement with promoter and buyer that should ensure among other covenants adherence to National Building Code (NBC).

Quantum of Loan The quantum of advance will be assessed on the basis of peak level deficit projected in the Cash Flow Statement in the Budget, as submitted by the borrower applicant. Security: (a) Primary: The land and building to be constructed on the land shall form the primary security. The value of primary security should be adequate to cover the Bank finance. (b) Collateral: Collateral in the form of equitable/registered mortgage of other land and building of adequate value of promoter/ guarantor may be taken. Margin- 25% (minimum) Insurance-Building to be comprehensively insured against fire, riot and other damages with Bank's clause. Click here for Interest Rates Processing & Up-Front Fees a. Processing fees 1. Fresh Sanctions : 0.80% on the amount of loan applied for along with the application. 1.20% processing fee of the sanctioned loan amount. 2. Review of TL on run down Balance : Rs.125.00 per lac, Min. Rs.250.00, Max. Rs.56000.00 3. Renewal of CC/WC : Rs.395.00 per lac or part thereof Min.Rs.700.00 b. Upfront fee will be 1% of loan amount sanctioned Delivery of Credit The credit /quasi credit requirement of the Construction company by way of cash credit/overdraft/short term loans linked to each specific project for a maximum period covering the period of construction plus 12 months will be considered on merit. Bid bond, Bank Guarantee for raising mobilization of advance, performance guarantee and guarantee for release of retention money etc. will also be considered on merit. Disbursement will be in phases depending upon the progress of work as certified by Chartered Engineer/Architects. Repayment Repayment is to be made in one or two installments after completion of the project and sale of the flats. Sales realizations in one Project should not be diverted to another Project.

For more details, please contact your nearest UCO Bank branch.

UCO NARI SHAKTI This Scheme is aimed at providing financial assistance to salaried women, in line with the broad objective of the Government towards women's empowerment. Salient features Eligibility Applicant should be either a permanent employee or have completed 3 years of service. Minimum take-home pay should be 40% of gross salary after all deductions including EMI against this loan. Regular income other than Salary Income may also be reckoned for considering the eligible amount. Quantum of loan 90% of the proposed expenditure or Rs. 2 Lac whichever is lower. Additional loan amount may be allowed within the quantum ceiling to the existing borrower for the purpose the earlier loan was sanctioned. Security: Loan will be on clean basis with two guarantors including that of Spouse/Nominee of PF/Gratuity. One guarantor other than spouse may be waived if additional liquid security is provided up to 40% of the loan amount. Click here to view rate of Interest : Repayment The loan amount with interest is repayable in 60 EMIs but one year before retirement Service Charge - 1% (Min. Rs.500/-)

For more details, please contact your nearest UCO Bank branch.

UCO SHOPPER It is a Consumer Loan scheme for Salaried Persons, Professionals and Businessmen for purchase of a whole range of consumer durables and two-wheelers. Consumer durables like TV, Computer, Refrigerator, Air-conditioner or any other item acceptable to the Bank, and Two-wheelers can be purchased through this scheme. Eligibility Salaried Persons Persons permanently employed in Govt./Semi-Govt. or reputed private concerns with remaining period of service of more than 5 years with annual take-home pay not less than Rs. 36,000/-. Income of spouse can also be reckoned to arrive at the stipulated take-home pay. Professionals & Businessmen The earnings of the applicant should not be less than Rs. 1 lac per annum as per Income Tax Returns/Certificate. LIC policy is to be assigned in favour of the bank for an amount equal/or more than the loan amount in case of non-salaried person. Quantum of loan

Maximum : Rs. 1,00,000/Minimum : Rs. 10,000/(Subject to maximum 10 times of monthly take-home pay in case of salaried persons).

Margin In case of two wheelers minimum margin is 10% and for consumer durables the minimum margin is 15%. Service Charge 2% service charge subject to a maximum of Rs. 500.00 will be taken at the time of sanction. Guarantee Personal guarantee of a person acceptable to the Bank is required. Repayment

The Loan is repayable together with interest within a maximum period of 60 months in equated monthly installments either through salary deduction or through post-dated cheques. No charge is levied for pre-payment. For more details, please contact your nearest UCO Bank branch.

UCO PENSIONER Short Term loan is extended through this scheme to Pensioners who receive pension through our Branches. War widows drawing family Pension are also eligible. Purpose

For meeting medical expenses for self and dependants. Payment of mediclaim premium. Meeting marriage expenses. Educational and traveling expenses. Repairs/renovation of dwelling house. Funeral expenses.

Quantum of loan Depends upon the monthly pension: 10 times of monthly pension or Rs. 1 lac whichever is lower. There is no processing charge or service charge. Rate of Interest Repayment Repayable within 12 to 24 months. It can be extended to 36 months in genuine cases but not beyond the period of 70 years age inclusive of repayment period. No pre-payment charge is levied.

UCO EARNEST MONEY DEPOSIT LOAN SCHEME

Loan scheme for financing for Earnest Money Deposit for booking housing plots/flats offered by various Urban/Metropolitan Development Authorities & Housing Boards. Eligibility Indian residents having regular documented source of income. Minimum 21 years of age Singly/Jointly as permitted by State Housing Boards/Urban Development Authority/Metropolitan Development Authority. The facility is to be allowed to only those applicants who fulfill all the eligibility criteria under UCO Shelter Scheme. Amount of Loan Maximum not to exceed 80% of the EMD. Processing Charge Rs. 300.00 upfront per application Margin - 20% Interest Rates - 9.00% (Fixed) Prerequisites

Letter of undertaking to be obtained from SHB/UDA/MDA of having noted Bank's lien and refund the amount through UCO Bank in case of unsuccessful applicants In case of allotment of plot, housing loan under UCO Shelter can be availed by the applicants. In such case the loan for EMD shall be adjusted against the loan granted for purchase of land and construction of house thereon.

Repayment- 24 monthly installment

UCO SWABHIMAN - REVERSE MORTGAGE LOAN MORTGAGE LOAN SCHEME FOR SENIOR CITIZEN Bank introduces UCO Reverse Mortgage Loan Scheme for Senior Citizens, under Reverse Mortgage a Senior Citizen, owning a house/flat, can avail of a monthly stream of Income against the mortgage of his/her property while remaining the owner and occupying the house throughout his/her lifetime, without repayment or servicing of the loan. Eligible Borrowers Senior Citizens of India.

Purpose Loan Amount Period of Loan Mode of Disbursement

Supplementing Senior Citizens Income Based on valuation of the property and age of the borrower Maximum Rs.50 lacs Minimum 5 years and maximum 15 years. Monthly/Quarterly with fixed/increasing Equated monthly Disbursement with an option to avail One-time lump sum payment after 12 months from the first disbursement during entire tenure of 15 years as per choice of the borrower. Equitable Mortgage of the residential property owned & self occupied by the Senior Citizen borrower. 10.50% (fixed) with reset clause after 3 years. The outstanding loan will be due when the last borrower dies/permanently moves out of the house/would like to sell the home. Loan will be liquidated by sale of property. Option available with the legal heir(s) to repay the loan and redeem, the house property.

Security Rate of Interest Repayment

Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) 'Affordable Housing for All' is an important policy agenda of the Government of India. Accordingly The Cabinet Committee for Economic Affairs has approved an Interest Subsidy Scheme for Housing the Urban Poor in order to ameliorate the living conditions of Economically Weaker Section/LIG population in urban areas. Primary objective of the scheme is to provide interest subsidy support. Objective: The key objective of the scheme is to enable Economically Weaker Sections (EWS) and Low Income Group (LIG) households to avail affordable housing loans for purchase of house/construction of new house. Definition: a) EWS- Economically Weaker Sections are those households having monthly income upto Rs.3300/-

b) LIG- Low Income Groups are those households having monthly income between Rs.3301/- to Rs. 7300/Target Group: Individuals /NGOs for on lending to their group members. Preference will be given to SCs, STs, Minorities, Person with disabilities and Women beneficiaries in accordance with their proportion in the total population of city/urban agglomerate during the 2001 census. Applicants planning to form cooperative group housing societies or organizations like Employees Welfare Housing, Labour Housing, etc. should be given preference and whenever possible construction of houses by such cooperatives by way of 1+3 storied buildings should be promoted so that cost of land is shared among beneficiaries. However, this is not a mandatory requirement. Both individuals as well as group Housing borrowers are equally eligible under the scheme. Target Borrower: Identification of beneficiaries will be undertaken by Urban Local Bodies or Local Nodal Agencies and they will assist the borrowers in paper works and procedure of bank loan. However the borrower would be free to approach and negotiate a loan under the scheme directly with the bank branch. Preference: Preference will be given to Scheduled Caste, Scheduled Tribe, Minorities, Person with disabilities and Women beneficiaries in accordance with their proportion in the total population of the city/urban agglomerate during the 2001 census Stipulations: The ultimate beneficiaries should not own a house in his/her name or in the name of his/her spouse or any dependent child. But such beneficiaries should own land in his name in case of application for construction of new house. Area of operation: Urban area. Zonal Offices will be advised to submit us a list of branches at urban area for implementation of the scheme. Nodal Agency: NHB and HUDCO were selected by the Government of India to act as intermediary financial institutions that would be responsible for administering the subsidy. Before implementation the Bank has to sign a MOU with any of the two organizations. We have signed MOU with NHB.

Loan amount: a) EWS- Maximum loan of Rs.1 lac ( Rs one Lac Only) for a house of at least 25 sq mts. b) LIG- Maximum loan of Rs.1.60 lac( Rs one Lac sixty thousand Only) for a house of at least 40 sq mts. However subsidy will be available for loan upto Rs. 1 lac only. Disbursement: Disbursement will be made on a phased manner depending upon the progress of construction. Branch will monitor the construction of the dwelling units financed under the scheme, including the approvals for the building design, infrastructure facilities etc. as also the quality of the construction and verify through site visits etc. the expenditure incurred upto different stages of construction. In case of construction disbursement may be done by debiting the respective loan account and crediting the savings bank account of the borrower. However in case of purchase of a ready built house the payment should be made directly to the vendor by issuing Demand Draft/ Pay Order as the case may be by debiting the loan account of the borrower. Rate of Interest: Interest @8.50% p.a. for first 5 years with a provision to reset after 5 years from the date of drawal of first installment for all loan under the scheme. Sanctioning Authority: All the loan applications under the scheme will be processed and sanctioned at the Retail Processing Centres at Zonal Offices and in case there is no Retail Processing Centres at any Zonal Office, at the branches identified by the respective Zonal Office. On receipt of the sanctioned proposals the branch will disbursed the loan following all the stipulation noted by the Retail Processing Centres at Zonal Office/Processing Cell. However before sanctioning any loan it should be ensured that the borrower have sufficient repaying capacity based on the average monthly income of the applicant for last three years and monthly family expenditure depending upon the size of family. Pre-payment charges: There will be no pre-payment charges for any loan sanctioned under the scheme. Subsidy: The subsidy will be 5% p.a. on interest charged on the admissible loan amount for both EWS and LIG, over the full period of the loan for construction or acquisition of a new house.

The Net Present Value (NPV) of the subsidy will be arrived at on the basis of notional discount rate of 9% p.a. (equivalent to Government Security rate) for the period of the loan and on the interest chargeable at the time the loan is contracted. The subsidy will be credited upfront to the borrowers account and interest will be calculated on the net amount of loan at the agreed rate of interest. Procedure for claiming Subsidy: Participating branches will claim interest subsidy for the entire period of any loan disbursed during the quarter to Head Office, Priority Sector Department through their respective Zonal Offices. Branches should submit their claim within 3 days of close of a quarter to their respective Zonal Offices and the Zonal Offices in turn will submit it to Head Office, Priority Sector Department within 7 days of close of a quarter. Repayment: Loan will be repaid in 180 to 240 EMI depending upon the income of the borrower. However branches may prefer for 20 years repayment, to get full benefits of Interest Subsidy and lower EMI. Equated Monthly Installments (EMI )

H.D.F.C TWO WHEELER LOANS

Super-Bike Finance scheme now available for Harley Davidson Motorcycles. For more details of the scheme, SMS <TWL> to 5676712 or write to tw.support@hdfcbank.com Whichever the bike, our Two Wheeler loan is the answer. With quick approvals, flexible payment options and easy repayment - we'll help you buy the bike you desire

Features & Benefits

Flexible repayment options, ranging from 12 to 48 months available even at the point of purchase. Repay through post-dated cheques with easy EMIs. Calculate your EMI. Hassle free loans - No guarantor required. Speedy loan approval. Available for almost all models at attractive interest rates.

Introduction of Personal loan

A type of loan available from banks, finance companies and other financial institutions, generally for purposes such as buying a car, boat or furniture. Funds are advanced (lent) to the customer for a fixed period, at a variable or fixed rate of interest with repayments calculated at the outset on the basis of monthly instalments. Personal loans are a popular means of finance for both secured and unsecured loans of $2000 and more

Meaning of personal loans

You must be very much careful before opting for person l are unsecured as many lenders offer this. These lenders are from some banks as well as some are Internet lenders. Personal loans can be opted for any purpose. Choosing proper lenders can be beneficial as there will be competitive deals. But on other side, these personal loans are unsecured. Though unsecured, you can get more benefits and good credits by taking higher risks.

Interest rates may vary on the basis of the lender chosen. So, firstly find the best deal and then go ahead. Around 25,000 can be borrowed from most of the lenders through such personal loans that are unsecured. The original amount depends on the circumstances on which you borrow. This includes the outgoings, your income as well as the credit rating and the most among all, employment status. The period of repayment also varies from lender to lender. Most of them give the terms between 1-5 years. Some of them even offer for 7-10 years. The main benefits you get are utilizing your payments by spreading it for longer terms and minimize monthly repayments. Personal loans are generally taken for outing, wedding purpose, paying college course fees, purchasing brand new vehicle and so on. Before making any applications, be sure that you will be able to do repayment and based on that decide the term of years for repayment. If you are not able to repay on time, credit rating would be damaged and in turn affect in future.

Personal Loan Definition By Chris Blank, eHow Contributor !

There are several types of personal loans. Among the most common personal loans are mortgages for houses and automobile loans. Such loans use the merchandise purchased as collateral, or a guarantee against failure to pay the loan. It is generally much easier to get a personal loan of any nature with substantial collateral, high income and good credit. However, it is possible to get loans with less favorable credit profiles if consumers are willing to accept higher interest rates. H.D.F.C BANKS PERSNAL LOAN

Personal Loan Features & Benefits

Borrow up to Rs 15,00,000 for any purpose depending on your requirements. Flexible Repayment options, ranging from 12 to 60 months. Repay with easy EMIs. One of the lowest interest rates. Hassle free loans - No guarantor/security/collateral required. Speedy loan approval. Convenience of service at your doorstep. Customer privileges

If you are an HDFC Bank salary account holder, we have a special offer for you If you are an existing Auto Loan or Home Loan customer with a clear repayment of 6 months or more from any of our approved financiers or us, you can get a hassle free personal loan (without income documentation). If you are an existing HDFC Bank Personal Loan customer with a clear repayment of 9 months or more, we can Top-Up your personal loan.

Credit Shield
In case of death or total permanent disability of the loanee,the loanee/nominee can avail of the Payment Protection Insurance (Credit Shield) which insures the principle outstandings on the loan upto a maximum of the loan amount.Principle outstanding is defined as the amount of loan outstanding (not including any arrears in payment or interest thereon) at the Date of Loss,having accounted for payments made and interest accruing as determined in the Policy. Hence,the amount covered does not include any principal added because of non - payment of EMI and also will not include interest/ accrued charges.

Fees & Charges for Personal Loan

Description of Charges Loan Processing Charges

Personal Loan Upto 2.50% of the loan amount subject to a minimum of Rs. 1,000/Salaried - No pre-payment permitted until repayment of 12 EMIs Self-employed - No pre-payment permitted until repayment of 6 EMIs Salaried - 4% of the Principal Outstanding after repayment of 12 EMIs Self-employed - 4% of the Principal Outstanding after repayment of 6 EMIs NIL

Prepayment

Pre-payment charges

Duplicate no due certificate / NOC Solvency Certificate Charges for late payment of EMI Charges for changing from fixed to floating rate of interest Charges for changing from floating to fixed rate of interest Stamp Duty & other statutory charges Credit assessment charges Non standard repayment charges Cheque swapping charges Loan Re-booking charges / Re-scheduling charges cellation charges Cheque Bounce Charges Legal / incidental charges

Rs 250/Not applicable @ 24 % p.a on amount outstanding from date of default Not applicable Not applicable As per applicable laws of the state Not applicable Not applicable Rs 500/- per event Rs 1000/Rs. 1000/Rs 450/- per cheque bounce

At actual

Boesen case study shows eager banks, easy loans

When lenders fail to follow basic banking rules and procedures designed to protect depositors and shareholders: A local businessman like the late Ed Boesen can use false stock brokerage account statements to obtain a series of multimillion-dollar loans. Six local banks are left scrambling for ways to recoup more than $16 million

through lawsuits and claims against Boesen's estate.activities and possible missteps of local lenders have spilled out in court records. A trail of documents filed over the past two months in Polk County District Court, as well as commercial credit records, starts with Boesen using fraudulent Smith Barney brokerage statements as collateral for millions of dollars in loans and ends with the Iowa banking superintendent acknowledging that banks failed to do due diligence. "It is safe to say that probably some of the procedures that these banks had in place were either inadequate or probably weren't followed," banking Superintendent Tom Gronstal told the Des Moines Sunday Register. In addition, three other Iowans familiar with lending policies and procedures said the six banks will have to explain their actions to regulators, who will then try to determine whether the Boesen loans were isolated mistakes. Those banks: First American Bank, Regions, Community State Bank, Great Western Bank, MetaBank and First National Bank of Omaha. "Whenever I find banks making bad loans, it is because they are violating their own lending policies generally or violating what represents good lending policy," said University of Iowa finance professor Gerry Suchanek, who lectures on commercial and investment banking policies and procedures. "It is not illegal, but failure to do a credit review or to do appropriate credit follow-up is something that I can't imagine a bank would do ... consistently." The banks continuing to give Boesen loans he didn't qualify for reminds another finance professor of the mindset that existed in recent years as national lenders made home mortgage loans to poor credit risks - a scandal that has rocked U.S. financial markets. "It was a matter of poor documentation, poor fact-checking and fraud that was committed on loans not caught by these institutions," said Thomas Root, an associate professor at Drake University. "As we know, that has been one of the key major contributors to the entire subprime lending scandal." Finally, it appears, one bank spotted Boesen's fraudulent attempts to secure a loan and blew the whistle on him.

Trail of loans based on fraudulent records

Gronstal, the banking superintendent, believes that in addition to the banks making

mistakes, they were also victims. "They basically got conned," Gronstal said. "(Boesen) was a very believable person and I think people trusted him, and apparently that trust wasn't warranted. It is unfortunate, but that is what happens sometimes." Officials for the six lenders declined to talk in specifics about their loans to Boesen, citing the various legal actions against the estate. In addition, several of bank officials also expressed concern that the public's confidence in banks is shaky in the current economic climate, so they want to avoid creating even greater uncertainty among depositors. But lawsuits filed over the past three months tell the story: Boesen's borrowing scheme apparently began in November 2007 when First American Bank of Fort Dodge loaned him $3.8 million. Boesen, a First American loan customer since at least 2003, presented bank officials with a statement showing substantial funds in a brokerage account at the Citigroup Global Market offices in Des Moines, court records show. The Citigroup office is also known as a branch office of Smith Barney, which provides brokerage, investment banking and asset management services across the United States. Boesen repeated his scheme in late December when he borrowed an unknown amount of money from First National Bank of Omaha. Officials for First National have not filed a claim against Boesen's estate, but probate documents show the lender has security interests in the assets of Boesen-owned businesses amounting to $8.2 million - and another set of records lists Boesen's interest in a Smith Barney account as collateral for the loan. Less than two months later, Boesen obtained $5 million from Community State Bank's branch in Ankeny, which had loaned Boesen-owned companies money beginning in 2006. A Uniform Commercial Code financing statement filed by Community State Bank also lists a Smith Barney account as collateral. Boesen borrowed another $7 million in April and May from Regions Bank in Urbandale and Great Western Bank in Clive using a series of Smith Barney statements, each supposedly reflecting large holdings. With each loan, lenders filed financing statements listing money in a Smith Barney account as collateral or, in the case of a $3.5 million Regions Bank loan made in April, all property and other investments "held by Smith Barney for or on behalf of the debtors."

 On June 19, Boesen received a $1 million loan on a promissory note from MetaBank in Urbandale - the final loan he apparently received using a fraudulent statement - according to a recent probate claim filed by the bank. The bank's claim says a Smith Barney account was used as collateral to secure the note. To date, no court documents have been filed by representatives of Boesen's estate or Boesen's relatives challenging the allegation that he used false documents to obtain the loans from the six banks. In fact, lawyers for Boesen's widow, Maureen, have claimed in court documents that her signature was forged on the endorsement of a check from one lender.

Banks' strategy: Secure more Boesen business

Why would so many banks be so eager to loan Boesen big sums of cash? Evidence from one bank's records and analysis from one expert point to a simple reason: competition. Holmes Foster, a former Iowa banking superintendent, said the Boesen name and reputation likely made lenders much more amenable when they should have been doing better research into his loan applications. Boesen's family floral business, which he owned with his brothers, has been a successful company throughout the years. And, until recently, Boesen seemed to be building a five-state financial empire involving floral companies, printing, land development and commercial building management and ownership. "When someone like him steps into your bank, you are hopeful you can do a lot of business with him," Foster said. "Banks are human and very competitive. They looked at it as an opportunity that they shouldn't pass up and probably allowed their standards to be relaxed a little." In addition, he suggested that an explosion of banks in the Des Moines area provided Boesen with a host of new lenders eager to do business. "There are as many as 40 banks and bank branches in this area, when five years to 10 years ago there were 12 to 20 banks here," Foster said. But the banks may have unwittingly been easy marks. "There is an old saying about newcomer banks: 'The first guy in their door to borrow has probably been refused by everyone else in town,' " Foster said.

The most public example of how a bank worked with Boesen on a loan is found in court documents filed by Great Western Bank, which is seeking up to $3 million in life insurance benefits owed to Boesen's widow, Maureen, as means of recovering most of its $3.5 million in loans. Among the documents are minutes from the bank's loan committee review of Boesen applications. Those records show bank officials offered this justification for granting the loan: "Continue to work on obtaining more of the customers (sic) banking relationships." Boesen had provided Great Western officials with a monthly statement on Smith Barney letterhead showing he had more than $8 million in one account, court records show. Boesen apparently gave bank officials an e-mail address they could use to verify the loan with James Willer, office manager at a local Smith Barney office. But the e-mail address he provided was to an AOL account, not to an official Smith Barney e-mail address. In court, Great Western's lawyers have said that loan officer James Schulze attempted to verify the account's existence and that Schulze twice called what he believed was Willer's cell phone number, but was unable to reach him. He made one telephone call to the Smith Barney office in Des Moines, but didn't reach Willer. In addition, the lawyers submitted as evidence a copy of an e-mail Schulze received, purportedly from Willer, that confirmed the account and that it wasn't pledged to any other loan. That reply came from an AOL account.

Regulators will review actions of the banks

Gronstal, the banking superintendent, said that he believes Boesen's family name and reputation probably played a role in the banks giving loans without verifying that the Smith Barney account was genuine. "I think what happened was that they had a number of transactions with Mr. Boesen that went off fine, and had them over a period of years," Gronstal said. "And for whatever reason, the whole thing got out of control, so they were presented with documents and other things that they thought were real and they weren't."

But control is what banks are supposed to exert, particularly when lending money, according to Root. "The question to be asked is, what process did they follow beyond what it said on the application?" Root said. "Because the bottom line should be trust but verify. No matter how much business they have with him, no matter what his reputation was, their job was to get the information and do the fact-checking." Suchanek, the U of I professor, said bank regulators likely would use the fraudulent loans to examine the adequacy of all six lenders' procedures and policies. "Bad loans always will catch up with you, either in the form of losses or in the form of audits by regulators who will say that the bank is developing a low-quality loan portfolio," he said. At the same time, Suchanek said that any regulatory review of the banks or the timing of those reviews is kept confidential to prevent bank customers from losing confidence in the strength of a lending institution that otherwise has a strong foundation. Sometimes banks make mistakes but don't deserve to be considered weak, Suchanek said. "There is nothing in the law that says you have to have a good lending practice," he said. "Good lending practices or good credit review policies are only things that regulators can enforce." Foster said that he expects all six banks duped in Boesen's scam to have more than enough strength to withstand any losses. Gronstal said that while depositors' money was used to make the loans, only the shareholders in the bank will lose out if the money isn't recovered. In June, the six banks reported total deposits ranging from $469 million to $86 billion, according to the Federal Deposit Insurance Corp. "It will be up to the examiners to review what happened, and I am sure that they will," Foster said, noting that officials from either the federal regulatory agency or the state banking superintendent's office conduct examinations annually. "They will use that loan problem to examine

LOAN MODIFICATION
Over the last three years, banks have failed at an increasingly alarming rate. This year, more banks have failed in the first seven or eight months than in all of last year. Recently, the failure of a behemoth bank named Colonial BancGroup out of Alabama was shocking. The bank had tens of billions of dollars in assets, including quite a few billion dollars in mortgages. These sorts of challenges scare governments, banks, financial institutions and investors. The federal government has had to battle this fear by implementing stimulus programs, loan modification programs and other forms of aid to banks and consumers.

While the stimulus programs have come under fire, and people are protesting federal debt, banks are benefiting from the loan modifications they have been agreeing to. Loan modifications limit foreclosures by giving homeowners another way to stay in their homes. For example, OneWest Bank of Pasadena is the savings bank which was created from the ashes of IndyMac Bancorp, a financial institution that collapsed under the weight of its bad mortgages. IndyMac was one of the leading banks in the subprime mortgage crisis. They even had a quite a few mortgages where the income of the homeowner was not properly documented. While some of the mortgages have had problems, loan modifications have gone a long way to helping banks build a profit. The IndyMac situation is a semi-crisis, as they had a run on the bank and had to shut their doors. However, between the loan modification efforts of California loan modification attorneys and renewed ownership, the new OneWest Bank of Pasadena actually posted a profit. This is a long way from over however. OneWest had $137 million worth of foreclosed homes on their books on June 30, which is up from $18 million on March 31. However, without the loan modification efforts of qualified California loan modification attorneys, there is no telling how much larger the $137 million number would be. It is reported that of the $6.6 billion in mortgages that OneWest has in its portfolio, nearly $2 billion were delinquent and/or facing foreclosure. With such a substantial number, the bank is desperately seeking ways to keep these people in their homes. Unlike global banks such as JP Morgan and Citi, OneWest is regional and cannot afford to simply write off billions of dollars in losses year after year. They need the homeowners to find ways to keep current with their mortgage payments, which absolutely includes loan modifications. Legal Disclaimer The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on

individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan. A California loan modification attorney can help any homeowner decide if a loan modification is right for their situation. A loan modification is a way to lower your monthly mortgage payments to an amount that is more affordable for the homeowner, thus allowing him or her to stay in their home and avoid foreclosure. Loan modifications have been around for quite a long time, but were not really paid much attention to until recently. If you are facing foreclosure, if your home value has faced a severe decrease in value or if you are afraid of falling way behind on your payments, contact a qualified California loan modification attorney today.

Banks that giving the loan (objective)

When looking to borrow for a home purchase, refinance or to cover other expenses many things about the lenders need to be learned besides their rates. The lender market is overcrowded, thousands and thousands of financial institutions are ready to lend you money.

When it comes to real estate most financial institutions offer the same set of loan types. The most popular are first time home mortage, home morgage refinance and second mortgage. 1) First Time Home Mortgage Usually when individuals or businesses purchase real estate they are paying immediately only a part of its value. A mortgage is used to pay the rest of the value. Mortgage means to pay your debt under security of your property. Most mortgage down-payments requirements these days vary anywhere from 2% to 5%. On a wider spectrum, the range is 0% to 20%. It is recommended that the mortgage downpayment be 20% or more of the property value to obtain the most favorable motgage terms. 2) Mortgage Refinance Refinance your home morgage to lower monthly payments, to pay-off loan sooner or to cash out. When interest rates are 1% lower than what you are currently paying, its time to consider refinancing. This can mean great savings for you and your family. Replacing your existing mortage with a new, lower interest loan, changing the term of your loan, or even consolidating all your debts into this new loan will save you money, both monthly and over the life of the loan. 3) Home Equity Loan or Second Mortgage A type of loan that allows homeowners to acquire a loan in addition to their original mortgage using a portion or all of the equity in their home (primary residence). A home equity loan is a generally a home mortgage on the subject property and may be used for any personal needs. Use a home equity loan to consolidate debt, make home improvements, buy a new car or pay for your daughters wedding. Take time to research! This is one of the most important financial decisions that you and your family will make. Next to buying a new car or sending your kids to college your mortgage could be with you for up to 30 years. Research the neighborhood, research the rates, research various lenders and brokers.

CONCLUSION
The main aim of the study to get the accurate knowledge to develop individual potential and give expression to their creative talent. Overall the experience an objective approach for estimating fair values of bank loans using observable information provided. The market value of banks stock is used and it is partioned into components.

Bank loan is an instrument of investing money in the fixed deposit and protecting the interest of the investors. It is very fast growing all over the world.

ANNEXURE 1) WHAT IS A BANK LOAN? ANS:-Kind of advance made by a bank to the customer with
Security

or without

HOW MANY YEARS FOR SHORT TERM LOAN GRANTED? ANS:- 5 YEARS
2)

3) HOW THE INTEREST CHARGED BY BANKS? ANS:- total amount of loan 4) WHICH LOAN VERY POPULAR IN INDIA? ANS:- personal loan WHAT FACILITY BANKS GIVEN FOR CUSTOMER? ANS:-bank given money in depends loans of customer
5)

6) WHAT OBJECTIVE TO BANKS GIVEN LOAN? ANS:- Protecting the interest of investor 7)HOW MANY DAYS PERSONAL LOAN? ANS:- 12 to30days OF REPAYMENT OF

BIBLIOGRAPHY
www.google.com www.script.com www.yahoo.com www.paredise.co H.D.F.C bank visit