Professional Documents
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Bank Limited
3.2 Credit:
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NCC
Bank Limited
Demand Loan
Term Loan
Continuous Loan
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NCC
Bank Limited
A. Demand Loan:
Loan against Imported Merchandise: Loan against imported merchandise (LIM) is the most common credit for foreign exchange business of this bank. LIM is allowed against imported goods. LIM may be created at the request of the importer while he is not in a position to take delivery of import bills by making payment of entire bank dues. The importer has to keep the goods in banks custody for getting this loan. Loan against Trust Receipt: Loan against trust receipt (LTR) is also a temporary loan and allowed to the customer against their application on the basis of only trust which is generally built on good customer- banker relationship. After sanction of LTR, import bills are handled over to the importer who will clear the goods from the custom authorities by making payment duty, VAT and other charges. Payment against Document: Payment against document (PAD) is the most common credit for foreign exchange business of the bank. On the receipt of import bills against the L/C from the Negotiating Bank, the issuing bank scrutinizes the documents with terms & conditions of the L/C and if it is found completely in order, PAD loan is created in the name of the importer in order to reconcile the entries so debited by the Reimbursing Bank.
B. Term Loan:
Loan against Home Building: Bank offer this loan only for solve financial problem to build a house. It is a long term policy. Limit of the amount of this loan depends on the valuation of land and also customer banker relationship. House Renovation Loan Scheme: This loan offer only for genuine house or flat owners to repairing or renovation the flat or house for better living or increase income. It is also a long term policy and limit also depends on the land or building and also customer bankers relationship.
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