Loan and Advances

What is Floating Rate of Interest ?

Floating Rate of Interest -A floating interest rate is a variable interest rate which can change over the duration of the loan / credit facility. The applicable interest rate on the loan moves up and down with the market rates or along an index.

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Loan Ratio

How To Calculate Loan Installment to Income Ratio (IIR) ?

Installment to Income Ratio is used to calculate the loan eligibility of the customer. This IIR denotes the portion of the customer's monthly...

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Loan Ratio

How To Calculate Loan to Value ratio LTV / LCR ?

Calculate Loan to Value ratio (LTV). LCR stands for the Loan to Cost ratio. LTV ratio used by banks to calculate the loan amount that a person is eligible for on the total cost of the property. There is a upper limit on the maximum loan amount that a person is eligible for for the purpose of loan irrespective of the loan eligibility. The maximum amount of loan eligible is pegged to the cost or value of the property. The loan eligibility...

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Loan Ratio

How To Calculate Fixed Obligation to Income Ratio (FOIR) ?

Fixed Obligation to Income Ratio formula is an important parameter in Loan calculation while maintaining Rating Chart. FOIR ratio includes all the...

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Education Loan

Whether Vocational Courses eligible for Education Loan ?

Vocational / skill development study courses, off-campus courses and on-site/partnership programmes are not eligible for loan under the IBA scheme.

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Loans & Advances

What is Entrepreneurship Development Programme (EDP) Under PMEGP ?

The objective of EDP is to provide orientation and awareness pertaining to various managerial and operational functions like finance, production, marketing, enterprise management, banking formalities, bookkeeping, etc. The duration for EDP under REGP was only 3 days, whereas, under PMRY it was 10 days. During various meetings, discussions and recommendations of Department Related Parliamentary Standing Committee for Industry (DRPSCI) it was felt that 3 days were not adequate for providing this inputs effectively and, hence two to three weeks period...

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Loans & Advances

What is the Eligibility Criteria Under PMEGP ?

Eligibility Conditions of PMEGP Beneficiaries are : (i) Any individual, above 18 years of age (ii) There will be no income ceiling for assistance for setting up projects under PMEGP. (iii) For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification. (iv) Assistance under the Scheme is available only for new projects sanctioned specifically under the...

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Loans & Advances

What is the Bank Finance Under PMEGP ?

1. The Bank will sanction 90% of the project cost in case of General Category of beneficiary/institution and 95% in case of special category of the beneficiary/institution, and disburse full amount suitably for setting up of the project. 2 Bank will finance Capital Expenditure in the form of Term Loan and Working Capital in the form of cash credit. Project can also be financed by the Bank in the form of Composite Loan consisting of Capital Expenditure and Working Capital....

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Frequently Asked Question

Our Blog

What is Floating Rate of Interest ?

How To Calculate Loan Installment to Income Ratio (IIR) ?

How To Calculate Loan to Value ratio LTV / LCR ?

How To Calculate Fixed Obligation to Income Ratio (FOIR) ?

Whether Vocational Courses eligible for Education Loan ?

What is Entrepreneurship Development Programme (EDP) Under PMEGP ?

What is the Eligibility Criteria Under PMEGP ?

What is the Bank Finance Under PMEGP ?

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