What is funded exposure?
Funded Exposure . – means an exposure for which loan proceeds have been provided to the borrower or to a third party on behalf of the borrower.
What is fund based and non fund based?
Fund based credit facilities are those where, upon sanction, there is an actual outflow of funds from the bank to the borrower, whereas non-fund. based facilities are those, at the time of sanction which do not involve such outflow of the bank’s funds.
What is non fund exposure?
Non-fund exposures comprise facilities including letters of credit and bank guarantees where the bank does not sanction a loan to the borrower, but acts as a guarantor to the borrower for another lender.
What is the meaning of fund based?
A fund based financial service involves credit offered by banks in the form of loans, overdrafts and other cash transactions. In a non-fund based financial service the bank does not deal with funds or cash transactions. Some examples of this type of service are bonds, letters of guarantee and letters of credit.
What is difference between LC and BG?
Letter of credit is an financial document for assured payments, i.e. an undertaking of the buyer’s bank to make payment to seller, against the documents stated. A bank guarantee is a guarantee given by the bank to the beneficiary on behalf of the applicant, to effect payment, if the applicant defaults in payment.
Is a fund based service?
Following are some of the examples of financial services: Leasing, credit card services, factoring, portfolio management, financial consultancy services, Underwriting, discounting and rediscounting of bills, Depository services, housing finance, Hire purchases, Mutual Fund management. …
What is the difference between fund based and fee based?
A fund based financial service involves credit offered by banks in the form of loans, overdrafts and other cash transactions. In a non-fund based financial service the bank does not deal with funds or cash transactions. When it sells a mutual fund or insurance product, it earns a fee or commission for doing so.
What is an example of non fund based service?
The non fund based financial services of the public sector banks include loan syndication, consultancy and advisory services, capital issue management etc. This paper emphasis on the analysis of non fund based financial services of public sector banks in India.
What are the types of fund based services?
Important fund based services include:
- Leasing.
- Hire purchase.
- Factoring.
- Forfeiting.
- Mutual funds.
- Bill discounting.
- Credit Financing.
- Housing Finance.
What are the fund based activities?
The traditional services which come under fund based activities are the following:a) Underwriting of or investment in shares, debentures, bonds, etc of new issues (primary markets activities) b) Dealing in secondary market activities.
Which is the fund based advance?
The fund based finance in banks is in different forms. The facilities like Overdrafts,Cash Credit A/c, Bills Finance, Demand Loans, Term Loans etc, wherein immediate flow of funds available to borrowers, are called funds based facility.
What is Bill discount?
Bill Discounting is a trade-related activity in which a company’s unpaid invoices which are due to be paid at a future date are sold to a financier (a bank or another financial institution). This process is also called “Invoice Discounting”.
Is Bill discounting a loan?
Bill discounting is simplest form of Invoice Financing. In other words, they are short term business loans using unpaid bills as security. You sell your unpaid bills to us and we pay you cash advances against bill value. Once your bills are paid, you pay us back with a small interest fee.
WhAt is Bill discounting and how it works?
Bill Discounting is a method of trading the bill of exchange to the financial institution before it gets matured, at a price that is smaller than its par value. It aids the sellers to get funds earlier for working capital finance in exchange for a small fee or discount. It also helps the bank earn some revenue.
WhAt is Bill financing?
WhAt is On-Bill FinAncinG? On-bill financing refers to a loan made to a utility customer— such as a homeowner or a commercial building owner— the proceeds of which would pay for energy efficiency improvements. Regular monthly loan payments are collected by the utility on the utility bill until the loan is repaid.
What is the purpose of finance bill?
Rule 219 of the Rules of Procedure of Lok Sabha states: ‘Finance Bill’ means the Bill ordinarily introduced in each year to give effect to the financial proposals of the Government of India for the following financial year and includes a Bill to give effect to supplementary financial proposals for any period.
What is a funding invoice?
Invoice financing is a way for businesses to borrow money against the amounts due from customers. Invoice financing helps businesses improve cash flow, pay employees and suppliers, and reinvest in operations and growth earlier than they could if they had to wait until their customers paid their balances in full.
Who needs invoice financing?
Your business is eligible if you are a Singapore company, that is: Registered on ACRA. Trading for at least 2 years. Minimum annual revenue of at least SGD 500k.
What is the difference between invoice discounting and factoring?
Whereas invoice discounting is a loan secured against your outstanding invoices, invoice factoring companies actually purchase the unpaid invoices outright. This is an important difference because it provides factoring companies with credit control, which enables them to deal with customers directly.