Retail banking & corporate banking Loans

Learn how banks lend to individuals, partnerships, trusts, and societies, and distinguish fund-based facilities from non-fund based facilities with examples like demand loans, overdrafts, and letters of credit.

Cash credit accounts provide a running credit facility with open cash credit and key cash credit, using drawing power and hypothecation of raw materials and book debts.

Explore buyer's credit and supplier's credit as financing options for international purchases, including how overseas banks fund importers, ensure immediate payment to exporters, and compare with the letter of credit.

Explore leasing finance and hire purchase as asset financing, detailing lessor and lessee roles, asset use, installments, and ownership transfer upon final payment.

Explore types of letters of credit, including revocable and irrevocable LCs, and revolving LCs, examining exporter risk, confirmation options, and renewal of drawings in import and local trade.

Learn to assemble a complete draft letter of credit format, detailing applicant and beneficiary information, irrevocable and transferable terms, currency, amount, shipment terms, required documents, and presentation period.

Learn how the installment to income ratio, or IRR, expresses a borrower's monthly loan installment as a percentage used to determine loan eligibility, with banks typically using 33.33% to 40%.

Explore simple and compound interest, focusing on simple interest as a flat rate for short-term loans, using the principal, rate, and time formula P × R × t ÷ 100.

Explore how annuities provide guaranteed income via cash flows at equal intervals after an accumulation period, with fixed, variable, life, and perpetuity types.