In this credit management project, we discuss the features, rules and regulation exercised in the credit department of different

banks of Pakistan according to the law of state bank of Pakistan. We choose the different credit instrument of national bank of Pakistan. The credit instruments are following:

NBP INVESTOR ADVANTAGE NBP KAROBAR NBP STUDENT LOAN SCHEME

NBP INVESTOR ADVANTAGE

Features
Comfortable and secure environment for trading NBP financing at very easy terms requiring minimum documentation Minimum turn around time No security requirement from the customer except for the customer's equity Customer's equity freely available for investment. Equity acceptable in cash or approved share.

Eligibility
Pakistani National with valid computerized national ID Card Over 21 years of age An account with NBP designated Branch Equity in the form of cash or NBP approved shares No default with any financial institution

Application Procedures
Obtain facility application form the NBP Marginal Desk at designated branches Fill in the application form and submit it to the branch On application approval, deposit equity as cash in the margin financing account

at the bank. Alternatively NBP approved shares can also be deposited in the NBP CDC Account (CDC A/c No. 2345) Start trading through comfortable & friendly trading centers establishment for Trading limit available for the amount of equity + bank financing. you (In collaboration with Taurus Security Limited a subsidiary of NBP)

Product Information
Financing Amount: 215,000/- @ 30%) Shares: As per NBP Approved List Available. Shares In Physical Form Not Acceptable. Trading: Allowed Only Through Trading Centers Created by NBP and Operated by Taurus Securities Limited (A Subsidiary of NBP) Rs.50, 000/ - To Rs.10, 000,000/-

Equity Requirement: In the Form of Cash or Shares or Both (Currently Minimum Rs.

Pricing
Fixed Price at the Time of Facility Sanction, Currently 6 Month Kibor + 3% (Per Annum)

Other Charges
On Time Application Processing Fee of 0.5% of the loan amount or Rs.5,000/(Whichever is lower) Brokerage Charges/ Fees/ Taxes/ etc. Charged At Actual On Brokerage Invoices

Documentation Fee Would Be Charged On Actual

Requirements
Photograph of Applicant NBP Account - Current or PLS Marginal Financing Application Form Copy of CNIC Copy of CNIC of Two (2) References Borrower Basic Fact Sheet Duly Filled In Statement of Assets & Liabilities List of Shares, Given as Margin (Optional)

NBP KAROBAR
The Following 5 products have been developed and offered by our Bank under the NBP Karobar Scheme for the growth and development of small micro business to reduce the Un-employment in the country. However it is the prime responsibility of the Branch Manager To be prudent while considering the finance proposal under the above scheme. 1. 2. 3. 4. NBP Karobar Utility Store(5 year) NBP Karobar Mobile general store NBP Karobar Transport( maximum limit 2 lac) NBP Karobar PCO(max limit 2 lac period 2 year)

Target Market Karobar

The scheme will be offered to our bonafide customers unemployed young citizens of Pakistan

Falling within age group of 18-45 years.

TERMS & CONDITIONS KAROBAR

The main terms & conditions of the scheme are as under.

MARK_UP RATE
Floating rate of Markup as per Banks instruction. The mark-up of 3 months grace period to be recovered in the first 9 months of the repayment schedule.

DOWN PAYMENT KAROBAR

5%of PCO & Tele Centre or as per Banks policy. 10%for other products or as per Banks policy. First year upfront insurance premium for tangible asset to be paid from down payment And balance amount of down payment will be treated as customers equity and the Banks debt will be calculated accordingly

DOCUMENTS/PAPER REQUIRED KAROBAR

Application on prescribed form duly completed. Two recent passport size preferably color photographs of applicant and guarantors Three attested Photocopies of CNIC of both applicant and guarantors Provisional franchise from Utility Stores Corporation Acceptance letter from Utility Stores Corporation Estimated cost of advance rent/security deposit and asset which is purchase Attested salary slip of guarantors NTN or latest Tax Return if available of guarantor Proof of property ownership of the guarantors Documents of title to property in case of mortgage Electronic credit investigation Bureau Borrowers basic Fact Sheet International Credit Information Limited

Availability of Two References and one Guarantor

SECURITY KAROBAR
Hypothecation charge overall stock/furniture which is applicable Lien marked under hire purchase agreement on the vehicle Personal guarantee of the applicant. Four undated crossed cheques, three of installment amount and fourth of full amount Registration of vehicle in joined name and borrower Mortgage of property offered as surety

One personal guarantee of an individual other than acceptable to the bank A person can give his/her guarantee only once during the currency of the finance.
Similarly The guarantor cannot become an applicant under the scheme until the finance in which He has guaranteed is fully adjusted

PROCESSING VERIFICATION & REGISTRATION CHARGES KAROBAR

I. II. Verification Charges Processing Charges Rs 500/-(non refundable) per case 1% of the Finance amount 30000 above from This is nonrefundable This is actual born by borrower& Vehicle registration

Document

SANCTIONING AUTHORITY KAROBAR

Finance under this scheme after due processing will be sanctioned by the Branch Credit Committee of the designated NBP branch. The BCC consist of Branch Manager and Credit Officer. The head Cashier Can act as loan officer where the second officer is not posted. In case of disagreement among the branch Manager and credit officer the case will be decided by the RBC and RCMC.

EXECUTION OF DOCUMENTS KAROBAR

The Branch Operations Manager will disburse the finance after execution of the documents as per Bank instructions.

INSURANCE KAROBAR
A. B. C. All the asset hypothecated/mortgaged with branch will be got insured. Life and disability insurance coverage of borrower to cover outstanding finance Financed assets insurance charges shall be borne by the borrower. However life &

account. disability Insurance charges of the borrower will be borne by the (GOP)

DISBURSEMENT KAROBAR
a) In case shop set-up of Utility Store Corporation Pay order will be issued in favor of supplier/vendor/manufacturer/authorized dealer. Pay order will be issued in favor of landlord for security deposit and advance rent. b) In case of other products Pay Order will be issued in favor of supplier at the time of delivery of the asset

REPAYMENT KAROBAR
I. II. III. IV. V. VI. Borrower will make monthly finance installments as pet the finance repayment Initially 3 months grace period will be allowed to every borrower. No payment is to be made during the grace period Monthly installment would comprise of principal, mark-up payment and insurance No penalty no early payment and balloon payments The payment to be made on installment due date. However in case of Referral schedules to be generated by the CAMS

payment.

Branch, Referral Branch will have up to 7 days to forward the payments to the Hub Branch.

LATE PAYMENT FEE KAROBAR

Late payment fee will be charged from the next day of the installment due date.

Late payment fee will be calculated on the following. Rs5/per day for late installment for first month. Rs10/per day for late installment, if rental become overdue for more than I month

SALE OF REPOSSED VEHICLES KAROBAR

Borrower may be offered a preemptive right to liquidate the finance within 15 days of repossession. If the customer does not opt for the facility or is unable to do so. Regional Credit Manager to initiate sale of vehicles refurbished. At least 3 estimated must be obtained from interested concerns and the vehicles Must be sold within 30days of the repossession. The sale period of the vehicle may be increased for additional 30 days on country collection Heads approval.

NBP STUDENT LOAN SCHEME

This scheme is announced by federal finance minister of Pakistan in budget speech in 2001-2002. Under the Scheme, financial assistance is provided by way of Interest Free Loans to the meritorious students who have financial constraints for pursuing their studies in Scientific, Technical and Professional education within Pakistan. The Scheme is being administered by a high powered committee comprising Deputy Governor, State Bank of Pakistan, Presidents of the commercial banks and representative of Ministry of Finance, Government of Pakistan.

ADMINISTRATOR OF THE SCHEME: National Bank of Pakistan

ELIGIBILITY
Under the scheme the students are eligible to apply for loans provided:

He/She has obtained admission on merit through normal course/procedure in the approved Universities/Colleges of the public sector mentioned hereunder. He/She falls at the time of admission within the age bracket of:For Graduation For Post-Graduation For PhD Not exceeding 21 Years Not exceeding 31 Years Not exceeding 36 Years

He/She has secured 70% marks in the last public examination. He/She has undertaken the study of the subjects given below. He/She is unable to pursue studies due to financial constraints.

TYPES OF LOAN
The loan facility will be available for entire duration of the study for:Schedule Fee Paid directly to University/College Boarding expenses excluding meal charges Procurement of textbooks--- Disbursed directly to the student the

REPAYMENT OF LOAN
The maximum period of repayment of loan is 10-Years from the date of disbursement of first installment. The borrower shall repay the loan in monthly installment after six months from the date of first employment or one year from the date of completion of studies, which ever is earlier.

Under the Scheme, loans are available in the following subjects. I) Engineering Ii) Electronics Iii) Oil Gas & Petro-Chemical Technology Iv) Agriculture V) Medicine Vi) Physics Vii) Chemistry Viii ) Biology, Molecular Biology & Genetics Ix) Mathematics X) Other Natural Sciences

Xi) DAWA and Islamic Jurisprudence (LL.B/LL.M Sharia) Xii) Computer Science/Information System and Technology including hardware. Xiii) Economics, Statistics and Econometrics Xiv) Business Management Sciences Xv) Commerce

Other criteria
The students desirous of availing loan under the Scheme may apply on prescribed form for financial assistance subject to he or she has got admission on merit through normal procedure in the Universities/ Colleges afore-mentioned. Applicants are required to submit/send their applications on the prescribed form, duly completed in all respect, to the designated branches indicated against each University/College by the given date. Incomplete application shall not be entertained. Students who have availed this facility in the last / previous year(s) need not to apply.