Category Archives: business loan

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Direct Selling Agent

Direct Selling Agent

A Direct Selling Agent agreement is a legal contract entered into between a industry and an Agent approved to promote/distribute the product from a business on its behalf. The Direct selling Agent contract puts in writing the terms of contract between the industry and the agent and details areas equivalent to hassle of legal responsibility, territory, mental property usage, commission, return coverage, etc.,


This Direct selling Agent contract can be used through any industry wishing to appoint Direct Selling agents on it behalf. It is regularly utilized by the various leading banks in this country, who outsource this earnings operation both to contributors or to different institutions specialised on this challenge.


The Direct Selling Agent agreement must be printed on a Non-Judicial Stamp Paper with a price of Rs.20/- or extra. The Direct promoting contract is made in two copies and the agent and the organization each should retain one original reproduction of the contract for their documents.

Who is eligible?

Institutional agency/Consultancy group, ideally, companies of Chartered Accountants, management Consultants, and so forth., who are offering monetary & investment Consultancy services are eligible for Direct promoting agency (DSA)

How to apply?

Application in the prescribed format is to be submitted to the Area manager / Officer-in-charge for empanelment. The important thing individuals / Senior officials of the college will be interviewed via the Area Manager / Officer-in-charge.

Job profile :

The DSA will must procure the Housing loan application from individuals together with the necessary  records, do preliminary scrutiny of the applications and thereafter ahead the identical to our area office along with the Cheque/Draft for the Upfront expenses.

The DSA will ought to affirm and make sure that the proofs of sales submitted by the applicants are exact.

A separate letter should be issued through the DSA in every case. The DSA should provide quintessential help to the area office as good as the applicant to complete the loan transaction speedily.

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Business Mortgage

Whats is Business Mortgages

Business mortgages (also known as business mortgages for proprietor-occupiers) are designed for contributors and corporations buying or remortgaging a property to be used as a business premises. Business mortgages are available on blended use properties, i.e. part commercial, part residential such as shops with residences above.

As independent, entire of market brokers, we negotiate business mortgages with a range of lenders including primary banks, regional and nearby constructing societies and professional business asset lenders.

Rates for business mortgages are dependent in your enterprise sector and with the aid of your enterprise efficiency and your own individual track record.

The worth of a broker inside this field are not able to be overstated, because of the bespoke nature of each single business mortgage transaction. Terms for business mortgages will not be set in stone and our position within the transaction is to barter the satisfactory personal loan expense and terms. Our wealth of expertise and market advantage method we comprehend what is likely to be done given a special set of instances.

Please be aware that some lenders would require the borrower to switch bankers to get the best terms. Others will work on a stand-by myself groundwork and it may additionally make sense to maintain what you are promoting mortgage separate out of your daily business bankers. Your broker will probably be able to speak about all of the choices available.

All finance for business mortgages is tailor-made to fulfill the borrower’s wishes. The place compatible, factors of the business loan buildings available to clients can include:

  • Interest Only mortgage periods
  • Long-term repayment mortgages with terms as much as 30 years
  • Fixed, variable and hedged mortgage rates

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Meaning and Objective of Financial Management

Financial Management means planning, organizing, directing and controlling the financial activities similar to procurement and utilization of funds of the enterprise. It means making use of basic administration ideas to financial resources of the enterprise.


  • Investment decision involves funding in fixed assets (known as as capital budgeting). Investment in current assets are also part of funding decisions called as working capital selections.
  • Financial Decision – They relate to the elevating of finance from more than a few resources so as to depend upon resolution on style of source, interval of financing, cost of financing and the returns thereby.
  • Dividend Decision – The finance supervisor has to take resolution in relation to the web profit distribution. Net profits are traditionally divided into two:
  1. Dividend for shareholders- Dividend and the rate of it has to be decided.
  2. Retained earnings- Amount of retained earnings needs to be finalized that allows you to rely upon growth and diversification plans of the company.

Objectives of Financial management

The financial management is by and large concerned with procurement, allocation and control of financial resources of a concern. The objectives may also be-

  • To make certain ordinary and ample supply of cash to the concern.
  • To ensure sufficient returns to the shareholders that will rely on the incomes capacity, market cost of the proportion, expectations of the shareholders.
  • To make sure most appropriate funds utilization. Once the money are procured, they must be utilized in highest possible way at least cost.
  • To make sure safety on funding, i.e. money will have to be invested in safe ventures in order that adequate cost of return can also be performed.
  • To devise a sound capital structure-There will have to be sound and reasonable composition of capital so that a stability is maintained between debt and equity capital.

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Different types of Business loan

Business  loans can also be categorised into quite a lot of varieties situated on applications of funds. Varieties of business loan differ vary based on the application of the loan. It’s important for an Entrepreneur to understand in regards to the types of industry loan and observe for the correct one established on the industry requisites inside the framework. In this article we look at the various types of business loans and its application.

Term loan

A term loan is a style of trade loan supplied for acquisition of lengthy-time period fixed assets like equipment, building or land. Term loans have a fixed reimbursement schedule and an interest cost that’s either constant or floating. Reimbursement for time period mortgage may be due month-to-month or quarterly. The average tenor for compensation of a term mortgage in India is anywhere between 2 years to 10 years.

Loan against Property

A loan against property raised by way of giving residential or commercial or vacant land as collateral protection to the bank. The cash raised via loan towards property can be used through the industry for any functions including advertising, research, business growth, employees cash, opening a new trade, working capital requirement, capital asset requirement, shopping land, and so on., generally there aren’t any restrictions on the appliance of cash – sanctioned as a loan against property. For that reason, the cash can be used for any motive.

Gold loan

A loan in opposition to gold jewellery or gold coin or gold embellishes can also be raised quite simply. The cash raised through gold loan can be used for any purposes. Nevertheless, most banks have a policy of now not lending more than Rs.20 lakh per person as gold loan.

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What is CC LIMIT and what are the advantages and disadvantages of CC Limit.

Definition: Cash credit score is a short-term supply of finance. Beneath money credit, the financial institution presents its client to take a loan up to certain restrict. Cash credit is sometimes called bank overdraft.

Elements of cash credit:

Following are the features of cash credit:

  1. This loan is given to meet the working capital requirements of a manufacturer.
  2. It is given in opposition to a collateral protection.
  3. Interest is charged most effective on the amount of mortgage taken by using the consumer and no longer on the quantity of credit score sanctioned.

Advantages of Cash credit:

Some great benefits of Cash credit are:

  • It is primary supply of working capital financing.
  • Cash credit score may also be got very easily and speedily.
  • Interest is charged most effective on the utilized quantity.

Disadvantages of cash credit score:

Cash credit score has the next negative aspects:

  • The price of curiosity charged by way of loan on cash credit may be very high.
  • Such mortgage is granted via financial institution on the groundwork of enterprise’s turnover, its fiscal status, price of inven­tory, and so forth. So it’s complicated for brand spanking new and financially susceptible businesses to acquire cash credit score.

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What is OD Limit

Loan association underneath which a financial institution extends credit score up to a maximum amount (known as overdraft limit) against which a present (checking) account customer can write checks or make withdrawals. Essentially the most usual type of business borrowing, an overdraft is a form of revolving loan where deposits (credits) are available for re-borrowing, and interest is charged simplest on the day-to-day overdraft (debit) stability. It is, nevertheless, also a demand loan: the ability will also be cancelled (and whole first rate amount ‘called’) at any time by means of the lender at its discretion, without any warning become aware of or clarification. If the overdraft is secured through an asset or property, the lender has the right to foreclose on the collateral in case the account holder does not pay.

Calls occur generally where the

(1) Borrower’s credit standing falls,

(2) Lender has intent to believe the borrower may match into default, or

(3)  Borrower has no longer ‘revolved’ the overdraft in a ample method and has became it into a hardcore debt. An overdraft is permitted only for a constant interval (more often than not one yr) after which it’s ought to be renegotiated. The borrower is as a rule required to hold 10 to 20 percentage of the authorised overdraft limit as money steadiness within the account, and must exhibit its carrying on with financial well being with the aid of managing without the overdraft for a one or two-month period (referred to as cleanup period). Also known as bank overdraft.