HARD
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Earn 100

A business firm has been sanctioned working capital limits of ₹6 lac at 25% margin by the bank and book debt limit of₹4  lac at 50% margin. What will be the total margin requirement to avail the limit fully?

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Important Questions on Loan Policy and Loan Documentation

EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 4
An MSE has been sanctioned working capital limits against the actual level of stock which normally remains around 30% of the annual sale. The annual sales are Rs.100 lac. What should be the value of insurance policy if the limit is Rs.22.50 lac, by maintaining 25% margin on stocks? 
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 5
Your branch has sanctioned working capital limit of Rs.9 lac to a partnership firm which submits stock report with stocks worth Rs. 28 lac and sundry creditors of Rs.18 lac. The margin in the account is only 20%, the unit being an SS1 unit. What is the maximum amount up to which the limit can be allowed to be availed by the party?
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 6
Your branch has sanctioned a cash credit limit of Rs.1.40 lac with 30% margin to a borrower. What must be the value of stocks if the unit is to avail the full limit?
MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 7
A firm has been sanctioned a cash credit limit of Rs.4 lac. It submits stock statement for stock value of Rs.6 lac. The margin on the security is 25%. What is the amount of drawing power in the account?
MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 8
Model Bank had granted a cash credit limit of Rs. 12 lac to M/s Banwari Traders against the stocks in trade with 25% margin. What should be value of stocks that the firm should have with them, if they want to avail the sanctioned limit fully. It may be noted that the firm avails regular credit from market against stocks to the extent of Rs. 6 lac:
HARD
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 9
Your branch has sanctioned a cash credit limit of Rs.12 lakh to M/s United Pharmacy. At the closing of July 31, it had stocks worth Rs.9 lakh, sundry creditors of Rs.3 lakh and book debts of Rs 6 lakh. Bank prescribed a margin of 25% on stocks and 30% on book debts. What is the maximum amount that can be withdrawn from the cash credit limit?
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 1
Which among the following are parties to a contract of guarantee under the provisions of Indian Contract Act 1872?
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 2
A term loan of Rs.2 lac is advanced to Mr X by Model Bank which is guaranteed by Mr Z. What is the consideration for the guarantor to give guarantee?