Page 124 - DCOM208_BANKING_THEORY_AND_PRACTICE

Unit 7: Loans and Advances

4. What are the factors influencing loan policy? Notes
5. Explain the manner of organisation of bank lending.
6. What are outright loans?
7. What is cash credit means?

8. What is meant by O/D facility?
9. Make differences between the cash credit account and overdraft.
10. Discuss the nature of loans granted by commercial banks.
11. What is additional security?

12. Differentiate between secured and unsecured loans.
13. Describe the management of loans in commercial banks.
14. What is primary sector lending?
15. What is discounting of bills of exchange?

Answers: Self Assessment

1. Fixed 2. Opposite

3. Overdraft 4. After
5. Do not 6. Concessional
7. Commercial 8. Liberalized

9. Personal 10. Aggressive
11. Liabilities 12. Differs
13. Free 14. Credit worthiness/Paying capacity
15. Operations 16. Real Estate
17. Sound 18. Overdraft

19. Monetary 20. Increase; decrease

7.12 Further Readings

Books Hajols. T. N (2009), “Money and Banking”, Gopaljee Enterprises.
Muraleedharan, D (2009), “Modern Banking: Theory and Practice”, PHI Learning
Pvt. Ltd.
Rajesh, R, Sivagnanansithi, T (2009), “Banking Theory: Law and Practice”, Tata
McGraw Hill Publishing Company Ltd.

Shekhar, K C (2009), “Banking Theory and Practice”, Vikas Publishing House
Pvt. Ltd.

LOVELY PROFESSIONAL UNIVERSITY 119