Loans for Business

Dutch Bangla Bank

2011-10-31T20:09:00.000+06:00

Dutch-Bangla Bank started operation is Bangladesh's first joint venture bank. The bank was an effort by local shareholders spearheaded by M Sahabuddin Ahmed (founder chairman) and the Dutch company FMO.

From the onset, the focus of the bank has been financing high-growth manufacturing industries in Bangladesh. The rationale being that the manufacturing sector exports Bangladeshi products worldwide. Thereby financing and concentrating on this sector allows Bangladesh to achieve the desired growth. DBBL's other focus is Corporate Social Responsiblity (CSR). Even though CSR is now a cliche, DBBL is the pioneer in this sector and termed the contribution simply as 'social responsiblity'. Due to its investment in this sector, DBBL has become one of the largest donors and the largest bank donor in Bangladesh. The bank has won numerous international awards because of its unique approach as a socially conscious bank.

DBBL was the first bank in Bangladesh to be fully automated. The Electronic-Banking Division was established in 2002 to undertake rapid automation and bring modern banking services into this field. Full automation was completed in 2003 and hereby introduced plastic money to the Bangladeshi masses. DBBL also operates the nation's largest ATM fleet and in the process drastically cut consumer costs and fees by 80%. Moreover, DBBL choosing the low profitability route for this sector has surprised many critics. DBBL had pursued the mass automation in Banking as a CSR activity and never intended profitability from this sector. As a result it now provides unrivaled banking technology offerings to all its customers. Because of this mindset, most local banks have joined DBBL's banking infrastructure instead of pursuing their own.

Even with a history of hefty technological investments and an even larger donations, consumer and investor confidence has never waned. Dutch-Bangla Bank stock set the record for the highest share price in the Dhaka Stock Exchange in 2008.

Brac Bank Limited (Bangladesh)

2011-10-31T19:56:00.002+06:00

BRAC Bank awarded prestigious FT Sustainable Bank of the Year 2010

BRAC Bank has been awarded as the Sustainable Bank of the Year 2010 at the FT Sustainable Banking Awards 2010. The award was jointly announced by Financial Times newspaper and IFC at the award ceremony on 3rd June 2010 in London.

The FT Sustainable Banking Awards is presented by the London-based international newspaper Financial Times and IFC, a member of the World Bank Group. Now in their fifth year, the awards recognize banks and other financial institutions that have shown leadership and innovation in integrating social, environmental and corporate governance considerations into their operations. BRAC Bank has been announced as the winner of the 2010 FT Sustainable Bank Award from Emerging Markets in Asia.

Lars Thunnel, Executive Vice President and CEO of IFC presented the award to BRAC Bank's Chairman Mr. Muhammad A. (Rumee) Ali and CEO Mr. Syed Mahbubur Rahman at the gala award ceremony in London. Dr. Atiur Rahman, Governor of Bangladesh Bank was also present in the program that witnessed the presence of more than 250 senior bankers and decision-makers in the area of sustainability. Dr Mo Ibrahim, Chairman and founder, Mo Ibrahim Foundation, and Founder, Celtel International, was keynote speaker at the dinner. The event followed a one-day Sustainable Banking Conference organized by the Financial Times and IFC.

"The award is a global recognition of the unique contribution BRAC Bank has made in establishing a bank that truly believes in socially responsible banking and is making a difference in the lives of many small businesses all over Bangladesh. A segment that was largely ignored by our financial industry. I am sure BRAC Bank model will be replicated in many countries in the years to come" said Mr. Rumee Ali in his initial reaction. "This award has made Bangladesh proud!"

"Broadening financial services to the poor and helping to raise living standards around the world is good for business and good for the global economy", said Lars Thunell, IFC Executive Vice President and CEO. "As these award recipients demonstrate, an increasing number of financial institutions recognize that and are finding innovative ways to expand access to finance and improve the environment."
DHL–Daily Star Bangladesh Business Awards 2008

BRAC Bank received the prestigious Business Award styled DHL-Daily Star Bangladesh Business Awards 2008 as ‘Best Financial Institution of the Year’ for its innovation in products, services, financial performance/ productivity, company management and contribution to Bangladesh’s development. BRAC Bank is a full fledged commercial bank; yet, it has significantly contributed in the development of SME sector by creating a unique model of collateral free SME lending, which enabled the SME entrepreneurs (the missing middle) to get easy access to finance. Furthermore, with its wide distribution network, BRAC Bank reached the greater population even at the distant corners of Bangladesh.

On behalf of the Bank, Mr. Muhammad A. (Rumee) Ali, Chairman of BRAC Bank Limited received the award from Dr. Saleh Uddin Ahmed, Governor, Bangladesh Bank and the chief guest of the award giving ceremony.
BRAC Bank received National Award as the Highest VAT payer for the financial year 2007-2008

BRAC Bank Limited has recently received the prestigious award for being the highest VAT paying organization in national level in service industry.

Dr. ABM Mirza Azizul Haque Honorable Adviser Finance & Planning Ministry, Govt. of People’s Republic of Bangladesh, handed over the award & crest to BRAC Bank Limited at a ceremony held in Osmani Smriti Milonayaton.
BRAC Bank received ICAB National Award

BRAC Bank Limited has been awarded ICAB National Award from Institute of Chartered Accountants of Bangladesh (ICAB) for one of the Best Published Accounts & Reports 2007 recently.

Dr. A. B. Mirza Md. Azizul Haque former Adviser Finance & Planning Ministry, Govt. of People's Republic of Bangladesh, handed over the award to BRAC Bank Limited at a ceremony held in Bangladesh-China Friendship Conference Centre.

SME banking now more popular

2009-08-19T20:26:00.001+07:00

CIB has established the SME Banking activity to become the reliable business partner of SMEs in Egypt, nurturing and meeting the unique needs of Small and Medium size Enterprises (SMEs).

The department works as a one-stop financial centre responding to the funding and business growth needs of SMEs in Egypt, with the aim of having long-term relationships with its customers.

The Bank offers integrated financial and advisory services to contribute to the growth of a more robust entrepreneurial community in Egypt. CIB operates its SME activity through two central units; one is located at its Head Office in Giza and the other in Alexandria at CIB-Sultan Hussein Branch.

CIB Definition of SMEs

* A Small Size Enterprise is a company maintaining annual sales figure above EGP 1M up to EGP 12M.
* A Medium Size Enterprise is a company maintaining annual sales figure above EGP 12M and up to EGP 80M.

What does CIB offer to SMEs?

CIB offers highly qualified financial advice to SMEs in addition to a variety of products range , including but not limited to:

* Medium term financing, up to five years to finance fixed assets (equipment, building, etc.)
* Short term financing (360 days max.) to finance working investment needs
* Contract financing
* Guarantees (bid, performance, and advance payment) to enable the company to participate in tenders and/or obtain its raw material
* Sight/ Time Letters of Credit, to cover the importation of machines and/or raw material
* A variety of liability (deposits) products

Such products are offered through a dedicated team of certified SME officers who are highly specialized in providing advice and assistance in every aspect of entrepreneurial business requirements.

Canada Small Business Financing Program (CSBF)Related Sites

2009-03-17T13:48:00.001+06:00

Hyperlinking Notice

Links to Web sites not under the control of the Government of Canada (GoC) are provided solely for the convenience of users. The GoC is not responsible for the accuracy, currency or the reliability of the content. The GoC does not offer any guarantee in that regard and is not responsible for the information found through these links, nor does it endorse the sites and their content.

Users should be aware that information offered by non-GoC sites that are not subject to the Official Languages Act and to which the [name of institution] links, may be available only in the language(s) used by the sites in question.

Canada Small Business Financing Program

2009-03-17T13:47:00.001+06:00

The Canada Small Business Financing Program seeks to increase the availability of loans for establishing, expanding, modernizing and improving small businesses. It does this by encouraging financial institutions to make their financing available to small businesses. Under the Program, a small business must apply for a loan at a financial institution (bank, credit union or caisse populaire) of its choice. Application is not made to the Canada Small Business Financing Program Directorate. If the loan is granted by the financial institution, the federal government will reimburse 85 percent of the lender's losses in the event of default.

The Canada Small Business Financing (CSBF) Act was enacted in April 1999 to build on the success of its predecessor, the Small Business Loans Act. The Program's objectives are to streamline loan administration, improve its ability to achieve cost recovery and to extend financing that would otherwise have been unavailable to small-and medium-size enterprises.

While Industry Canada is responsible for the administration of the Program, financial institutions are responsible for all credit decisions and for making the loan

Email your Friends

2009-03-17T13:45:00.001+06:00

Hi there,

I wanted to let you know about Kiva (www.kiva.org), a non-profit that allows you to lend as little as $25 to a specific low-income entrepreneur in the developing world.

You choose who to lend to - whether a baker in Afghanistan, a goat herder in Uganda, a farmer in Peru, a restaurateur in Cambodia, or a tailor in Iraq - and as they repay their loan, you get your money back. It’s a powerful and sustainable way to empower someone right now to lift themselves out of poverty.

Check it out!

How Kiva Works

2009-03-17T13:41:00.002+06:00

Choose an Entrepreneur, Lend, Get Repaid

The below diagram shows briefly how money gets from you to a developing-world entrepreneur, and back.

1) Lenders like you browse profiles of entrepreneurs in need, and choose someone to lend to. When they lend, using PayPal or their credit cards, Kiva collects the funds and then passes them along to one of our microfinance partners worldwide.

2) Kiva's microfinance partners distribute the loan funds to the selected entrepreneur. Often, our partners also provide training and other assistance to maximize the entrepreneur's chances of success.

3) Over time, the entrepreneur repays their loan. Repayment and other updates are posted on Kiva and emailed to lenders who wish to receive them.

4) When lenders get their money back, they can re-lend to someone else in need, donate their funds to Kiva (to cover operational expenses), or withdraw their funds.

What Is Kiva?

2009-03-17T13:39:00.001+06:00

We Let You Loan to the Working Poor

Kiva's mission is to connect people through lending for the sake of alleviating poverty.

Kiva is the world's first person-to-person micro-lending website, empowering individuals to lend directly to unique entrepreneurs in the developing world.

The people you see on Kiva's site are real individuals in need of funding - not marketing material. When you browse entrepreneurs' profiles on the site, choose someone to lend to, and then make a loan, you are helping a real person make great strides towards economic independence and improve life for themselves, their family, and their community. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates and track repayments. Then, when you get your loan money back, you can relend to someone else in need.

Kiva partners with existing expert microfinance institutions. In doing so, we gain access to outstanding entrepreneurs from impoverished communities world-wide. Our partners are experts in choosing qualified entrepreneurs. That said, they are usually short on funds. Through Kiva, our partners upload their entrepreneur profiles directly to the site so you can lend to them. When you do, not only do you get a unique experience connecting to a specific entrepreneur on the other side of the planet, but our microfinance partners can do more of what they do, more efficiently.

Kiva provides a data-rich, transparent lending platform. We are constantly working to make the system more transparent to show how money flows throughout the entire cycle, and what effect it has on the people and institutions lending it, borrowing it, and managing it along the way. To do this, we are using the power of the internet to facilitate one-to-one connections that were previously prohibitively expensive. Child sponsorship has always been a high overhead business. Kiva creates a similar interpersonal connection at much lower costs due to the instant, inexpensive nature of internet delivery. The individuals featured on our website are real people who need a loan and are waiting for socially-minded individuals like you to lend them money.

Standard Chartered Bank

2009-03-15T22:42:00.003+06:00

History

The Standard Chartered Group was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa founded in 1863 and the Chartered Bank of India, Australia and China, founded in 1853.

Both companies were keen to capitalise on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods from Europe to the East and to Africa.

The Chartered Bank

Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853.
Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859.
Traditional business was in cotton from Mumbai (Bombay), indigo and tea from Calcutta, rice in Burma, sugar from Java, tobacco from Sumatra, hemp in Manila and silk from Yokohama.
Played a major role in the development of trade with the East which followed the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871.
In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank's Cyprus Branches. This established a presence in the Gulf.

The Standard Bank

Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced business in Port Elizabeth, South Africa, in January 1863.
Was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885.
Expanded in Southern, Central and Eastern Africa and by 1953 had 600 offices.
In 1965, it merged with the Bank of West Africa expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.

In 1969, the decision was made by Chartered and by Standard to undergo a friendly merger. All was going well until 1986, when a hostile takeover bid was made for the Group by Lloyds Bank of the United Kingdom. When the bid was defeated, Standard Chartered entered a period of change. Provisions had to be made against third world debt exposure and loans to corporations and entrepreneurs who could not meet their commitments. Standard Chartered began a series of divestments notably in the United States and South Africa, and also entered into a number of asset sales.

From the early 1990s, Standard Chartered has focused on developing its strong franchises in Asia, the Middle East and Africa using its operations in the United Kingdom and North America to provide customers with a bridge between these markets. Secondly, it would focus on consumer, corporate and institutional banking and on the provision of treasury services - areas in which the Group had particular strength and expertise.

In the new millennium we acquired Grindlays Bank from the ANZ Group and the Chase Consumer Banking operations in Hong Kong in 2000.

Since 2005, we have achieve several milestones with a number of strategic alliances and acquisitions that will extend our customer or geographic reach and broaden our product range.

Please click here for the list of recent strategic alliances and acquisitions.

HSBC The world's local bank

2009-03-15T22:36:00.004+06:00

Who is HSBC?

We are the world's local bank.

Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. HSBC's international network comprises around 9,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.

With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by around 200,000 shareholders in some 100 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts.

Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.

Business principles and values

The HSBC corporate character defines the values and principles inherent in all our everyday dealings.

Group History

The HSBC Group has an international pedigree which is unique. Many of its principal companies opened for business over a century ago and they have a history which is rich in variety and achievement. The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between China and Europe.

Standard Chartered Bank

2009-03-15T22:35:00.002+06:00

Standard Chartered Bank

From Wikipedia, the free encyclopedia

Jump to: navigation, search

Standard Chartered PLC

Type	Public
Founded	1853
Headquarters	London, England, UK
Key people	E. Mervyn Davies CBE, Chairman Peter Sands, Chief Executive
Industry	Banking
Products	Financial Services
Revenue	$16,378 million (2008)
Operating income	$4,568 million (2008)
Net income	$3,511 million (2008)
Employees	73,000 (2008)
Website	www.standardchartered.com or www.sc.com

Standard Chartered Bank (LSE: STAN, SEHK: 2888,OTCBB: SCBFF) is a British bank headquartered in London with operations in more than seventy countries. It operates a network of over 1,700 branches and outlets (including subsidiaries, associates and joint ventures) and employs 73,000 people.

Despite its British base, it has few customers in the United Kingdom and 90% of its profits come from Asia, Africa, and the Middle East. Because the bank's history is entwined with the development of the British Empire its operations lie predominantly in former British colonies, though over the past two decades it has expanded into countries that have historically had little British influence. It aims to provide a safe regulatory bridge between these developing economies.

It now focuses on consumer, corporate, and institutional banking, and on the provision of treasury services—areas in which the Group had particular strength and expertise.

Standard Chartered is listed on the London Stock Exchange and the Hong Kong Stock Exchange and is a constituent of the FTSE 100 Index. Its largest shareholder is Temasek Holdings.^[1]

Foreign Banks in Bangladesh

2009-03-15T22:32:00.002+06:00

HSBC

From Wikipedia, the free encyclopedia

Jump to: navigation, search

HSBC Holdings plc

Type	Public (LSE: HSBA, SEHK: 005, NYSE: HBC, Euronext: HSB, BSX: 1077223879)
Founded	Hong Kong (1865)
Founder(s)	Thomas Sutherland
Headquarters	8 Canada Square, London, England, UK
Key people	Stephen Green, Group Chairman Michael Geoghegan, Group Chief Executive
Industry	Finance and insurance
Revenue	£49,759 million (2008)
Operating income	£5,072 million (2008)
Net income	£3,541 million (2008)
Employees	312,000 (9,500 offices in 85 countries and territories)
Subsidiaries	HSBC Bank plc, The Hongkong and Shanghai Banking Corporation, HSBC Bank USA, HSBC Bank Middle East, HSBC Mexico, HSBC Bank Brasil, HSBC Finance
Website	www.hsbc.com

HSBC Holdings plc is a public limited company incorporated in England and Wales in 1990, and headquartered in London since 1993.^[1] As of 2008, it is both the world's largest banking group and the world's largest company according to a composite measure by Forbes magazine.^[2]^[3] The group was founded from The Hongkong and Shanghai Banking Corporation based in Hong Kong, the acronym of which led to the current name. Today, whilst Hong Kong still continues to be a significant source of income for the group, no single geographical area dominates earnings. Recent acquisitions and expansion in China are returning HSBC to part of its roots.^[4] HSBC is Europe's biggest bank and has an enormous operational base in Asia and significant lending, investment, and insurance activities around the world. The company has a global reach and financial fundamentals matched by few other banking or financial multinationals.

List of banks in Bangladesh

2009-03-15T22:31:00.001+06:00

The commercial banking system dominates Bangladesh's financial sector. Bangladesh Bank is the Central Bank of Bangladesh and the chief regulatory authority in the sector. The banking system consists of four nationalized commercial Banks, around forty private commercial banks, nine foreign multinational banks and some specialized banks. The Nobel-prize winning Grameen Bank is a specialized micro-finance institution, which revolutionized the concept of micro-credit and contributed greatly towards poverty reduction and the empowerment of women in Bangladesh.

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How to Get a Business Loan in Five Steps

2009-03-15T17:26:00.000+06:00

How to Get a Business Loan in Five Steps
by: Dave Miller

Need funds to startup or expand your business? Follow these steps:

A lender looks at a loan request in three sections known as the "three C's". They are:

Credit: Did you pay previous lenders back as contracted?
Capacity: Can you afford to pay back this loan?
Collateral: If you don't pay back the loan from what asset can the lender recover their principal?
Step one is:

1. Identify your strength and weaknesses in the "3 C's". Do this as would a lender - with a very critical eye. Identify your loan to value ratio and your debt service coverage ratio. If you have reason to believe that you credit is less than sterling, get a copy of your credit report including your credit score

Each lender has different criteria with the cost of the loan being higher as your strength in the "3 C's" is lower. Step two is:

2. Identify lenders who lend to your level of borrower and to your industry type. Call lenders to get their criteria. Learn about the SBA 504 program and 7A loan guarantees. Find who others in your industry have used for financing.

If there is a gap (not a canyon, just a gap) between your borrowing ability and lenders criteria, a loan broker may be able to help. They spend their working hours finding second and third tier (more aggressive and more expensive) lenders and establishing relationships with them. They can act as a salesperson for your project in ways that you as a principal cannot. Step three:

3. If you cannot find lenders on your own, consider hiring a commercial mortgage broker. Be careful - in many areas there is little or no protection under the law for commercial transactions. While a small upfront fee for out of pocket expenses is reasonable, shy away from any that want large upfront payments. If they can do the deal they will be paid very well at settlement. If they can't do the deal they shouldn't be taking your business at all.

Once you identify a list of potential lenders or hire a broker, get prepared. Do not think that the business loan process is merely a matter or forms and paperwork. While there is more paperwork than you'd ever want to see, it is more of an inquisition. Step four:

4. Be an expert salesperson for your project. Obviously, we think that your should use FundablePlans.com to build a written proposal. Whatever method you use, know your numbers and be able to defend them. Understand your market and be able to speak competently about it. Know your competition. Most importantly, (from step one) know your strengths and weaknesses as a borrower and be able to maximize the strengths and minimize the weaknesses.

If you are successful with steps one through four, you will expect to "hit a home run". You may, but most likely you won't. Step five:

5. Don't give up. Where one lender might have too many loans of your type in her portfolio, the next may need exactly your loan to meet his goals (loan officers are paid to lend). This is not to say that you should "beat a dead horse", but if you have a viable project, a good presentation and good "C's", you will be able to get financing.

Good luck with your project, if you have questions about funding feel free to use the e-mail link below.

About The Author

Dave Miller is a business consultant and the creator of FundablePlans.com, an online business plan builder at http://www.fundableplans.com.
dave@fundableplans.xom

The Five C's of Credit

2009-03-15T17:24:00.002+06:00

The Five C's of Credit

Money lenders are always looking for the best clients to lend their money to. But what sorts of things do they look for in a company? This is where the 5 C's of Credit comes in - character, capacity, capital, conditions, and collateral.

Character
The character is the client's reputation and reliability. Are you trustworthy enough to repay the loan? Things associated with your character include your business experience and knowledge, references and education, and personal and/or business credit history.

Capacity
Is your company able to repay the amount borrowed? Your company's cash flow will be reviewed, and how you intend to repay the loan is established. Payment history and records on other credit relations will be looked at and considered. These include both personal and commercial.

Capital
How much money have you invested into your business? The amount of your own money put into the company portrays a message of confidence and trust. It shows that you have taken the risk of funding the company, so the lender knows it is safe to do the same.

Conditions
How well is your business currently faring? What will the loan be used for? Is it for equipment, expansion, or just for financial security? Things such as the economy, competition, and customer base are noted.

Collateral
If for some reason you cannot provide repayment, collateral will be a secondary source of repayment. Collateral can include things such as inventory, equipement, real estate, stocks, accounts receivable, etc. Usually a signed contract is needed as a guarantee.

Predicting Expenses

2009-03-15T17:19:00.001+06:00

Part of making your business plan is to predict your expenses in the upcoming months. These costs may vary throughout the different stages of your business. Some companies may require a large investment at the start because of inventory or equipment costs.

It is essential at your startup to spend money only on necessities. Laying out extra cash for luxuries you don't need is a waste and can only lead to strains on your budget. For example, it may be cheaper to rent a cargo truck instead of purchasing one. Sacrifices and risks need to be taken in order to obtain a reward in the end.

In your budget will be generally two types of expenses. Those that are fixed and usually at a constant rate. This includes things such as utilities, rent, insurance, and administrative costs. The other type is the kind that will be constantly changing in some small proportions. This includes things such as shipping and packaging, inventory, employee paychecks, and prices associated with sales. Try to separate these two different expense types. Fixed expenses will be much easier to predict the cost of, while the variable costs can range.

Auto Loan from Standard Chartered

2009-03-12T21:52:00.003+06:00

With Standard Chartered Auto Loan, it is easier than ever to buy the car of your dream. It offers you a flexible and affordable loan with easy repayment options, all wrapped in a very convenient package. We finance a maximum of 75% of the car value. The loan amount may range from BDT 200,000 to BDT 5,000,000 for new / reconditioned cars and from 200,000 to BDT 1,000,000 for used cars.

Easy conditions to realise your dream car:

Salaried Executives / Self-employed Individuals

Minimum Age: 23 years (for salaried executives) and 25 years (for self-employed individuals)

Maximum Age: 65 years

Work Experience: Minimum 1-year service experience for salaried executives & 3 years for self-employed individuals.

Nationality: Bangladeshi

Minimum net income: BDT 25,000 for both salaried individuals and self employed persons per month.

Wide range vehicle types and brands to choose from:

New Vehicle: Car, Station Wagon, Jeep, 4-Wheeler Jeep, Microbus (Pick up or any vehicle for commercial use is not included in this scheme)
Selected Brands for new vehicles: BMW, Jaguar, Mercedes Benz, Volvo, Toyota, Honda, Nissan, Mitsubishi, Suzuki, Maruti, Hyundai, Opel, Rover, Fiat, Tata, Daihatsu, Daewoo, Mahindra
Reconditioned Vehicle: Car, Station Wagon, Jeep, 4 Wheeler Jeep, Microbus (Pick up or any vehicle for commercial use is not included in this scheme)
Selected Brands for reconditioned vehicles: Toyota, Honda, Nissan, Mitsubishi
Used Vehicle: Car, Station Wagon, Jeep, 4 Wheeler Jeep, Microbus
Selected Brand for used vehicles: Toyota only

Vehicle Age specifications:

New Vehicle: Never used and ready for first time registration
Reconditioned Vehicle: Ready for first time registration and maximum age of the vehicle at the end of the loan must not be more than 10 years.
Used Vehicle: Ready for second time registration and maximum age of the vehicle at the end of the loan must not be more than 10 years.

Tailored Repayment Period:
Auto Loan from Standard Chartered has been custom designed, which lets you drive your dream car while providing you the convenience of repaying.
Maximum Repayment period
Brand New cars: 60 months
Reconditioned cars: 60 months for Toyota, 48 months for others
Used cars: 36 months

Competitive Cost:
We offer you one of the most competitive rates in the market. Our interest rate is only 13% per annum. However, you can enjoy lower interest rate if you prefer to deposit some security.

Processing Fee:
For loan amount from BDT 200,000 to BDT 399,000 : BDT 5,000.
For loan amount from BDT 400,000 to BDT 999,000 : BDT 7,500.
For loan amount 1,000,000 and more: 1% of loan amount.

Convenient:
At Standard Chartered, we believe in delivering our services to customers?doorsteps. Just call us at +88 (02) 8961151, 0173 041400-19 and let Standard Chartered help to realise your dream car.

Terms and conditions apply

Personal Loan from SCBL

2009-03-12T21:50:00.001+06:00

Personal Loans from Standard Chartered are the most flexible of their kind in the market. Unlike the conventional banking at Standard Chartered, you do not need to provide any cash security to avail Personal Loan from us. The loan amount may range from BDT 60,000 to BDT 1,000,000 depending on your income.

A very flexible Personal Loan - to meet your assorted needs like:

Purchase of miscellaneous household appliances

Purchase of personal computers

Purchase of refrigerator

Purchase of audio-video equipment

Purchase of furniture

Hospitalisation or other emergency medical needs

House renovation

Purchase of office equipment / accessories

Office renovation

Marriages in family

Advance rent payment

Overseas trips

No cash Security:
The great news is no cash collateral is required to obtain this loan. This means no requirement of submitting your fixed deposits to the Bank for the period of the loan as security. Some documents from your employer or the guarantee of a reputed person (as defined by the Bank) will suffice.

Tailored Repayment Period:
Monthly instalments can be tailored to meet your convenience and budget. You can choose to repay the loan in 12 to 60 equal monthly instalments depending on the loan amount.

Competitive Cost:
Personal Loans from Standard Chartered offer you some of the most competitive interest rates available in the market. Depending on your job criteria our interest rate varies from 13% to 15%.

Processing Fee:
1% or BDT1,000 whichever is higher.

Convenient:
At Standard Chartered, we believe in delivering our services to customers?doorsteps. Just call us at +88 (02) 8961151, 0173 041400-19 and let the Standard Chartered make your dreams come true.

Terms and conditions apply

Personal Secured Loan

2009-03-12T21:44:00.001+06:00

A Personal Secured Loan is a fixed loan secured by your time deposit held with HSBC. The loan will provide you with the flexibility to meet any emergency cash needs you may have, so you don't have to encash your high yield investments.

Loan amount is up to 90% of the value of your taka time deposit or WEDBs or 80% of the value of your foreign currency time deposit or USDBs with minimum loan amount of BDT90,000
Competitive interest rates
Processing fee - BDT1,000
Flexible repayment schedules ranging from 12 to 60 equal monthly instalments
Partial prepayment and early settlement facilities
Automatic and free transfer of monthly instalments from your savings account without affecting the interest earned on that account.
Option of one time repayment at the end of loan tenure with discounted interest rate is available.

6 Ways to apply for an ANZ Home Loan

2009-03-12T21:41:00.001+06:00

6 Ways to apply for an ANZ Home Loan

Call us direct

One of our Mortgage Specialists will take you through the features and benefits of our loans, ask you a few questions about your current financial position and advise you of the next steps involved in getting your loan approved. You may also need to provide some supporting documentation to accompany your application. Once you're approved, we'll send a Letter of Offer for you to sign.

Our Mortgage Specialists are available via the Home Loan Hotline on Freecall* 1800 100 641, 8.00am to 11.00pm (AEST), seven days a week.

* Not a Freecall from mobile or payphones.

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ANZ Personal Mortgage Manager

Personal Mortgage Managers are a dedicated team of mortgage professionals within ANZ.

They are specialised residential mortgage lenders who have:

extensive mortgage lending experience
wide-spread knowledge of the mortgage market and end-to-end mortgage process
the required experience to handle and structure complex residential mortgage deals.

They provide a personalised ongoing service, by offering their clients a dedicated manager for all their banking needs and by providing them with access to other experts within ANZ.

Call the ANZ Personal Mortgage Manager Hotline on 13 14 10.

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We come to you

ANZ mobile home lending service

Your local mobile ANZ mortgage expert will be able to assist you with your home loan needs at a time and place that is convenient to you.

Accessibility - we will meet with you at a time and place that suits you best.
Products - access to the full suite of ANZ's award-winning mortgage products.
Expertise - expert assistance for all your mortgage needs.
The best deal - strong, competitive pricing and flexible loan features.

Contact your local mobile ANZ mortgage expert:

Enter your postcode to find your closest representative:

Call 13 37 50, 8.00am to 11.00pm (AEST) seven days a week.

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Visit an ANZ branch

Locate your nearest ANZ branch

Use the ANZ Locator to locate your nearest ANZ branch. At your appointment, your Branch Manager will fill out your loan application with you and inform you of the next steps.

Make an appointment online

For your convenience, we can locate your nearest branch and contact you to confirm an appointment time. Or, we can arrange for a loan specialist to call you so that you can apply over the phone - it's up to you! Just answer a few simple questions, and we will contact you within two business days to arrange your loan application.

Make an appointment

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Download application form

A loan application form can be downloaded and printed out at any time that is convenient to you.

Simply select the loan(s) you would like to apply for on the first page of the form, and complete all following pages.

Download application form (PDF 452kB)

Once you have completed the application form, you can either fax or send it by Reply Paid post:

By fax:

1800 283 444 (within Australia Freefax)
+61 3 9317 2200 (international)

Attention: Home Loan Hotline

Reply Paid 80724
ANZ Banking Group
Attention: Home Buyer Line
Private Bag 25
Collins St West
Vic 8007

When we receive your application, we will contact you within two (2) business days to discuss your requirements and advise you of any supporting documentation needed. Once we have all the documentation, we can provide you with a decision within 48 hours.

Download application form (PDF 452kB)

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Apply online

You can now apply online for a home loan.

It will take just a few minutes, and an ANZ dedicated mortgage expert will then call you to discuss your home loan requirements and gather your application details and advise of any additional documentation needed. Once we have the documentation, we can generally provide you with a decision within 48 hours.

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Avoid Overstretching Yourself When Applying For Loans By: Joseph Kenny

2009-03-12T21:35:00.002+06:00

When considering any kind of loan it is necessarily to ensure that you do not overstretch your finances. You should never consider committing to a loan, if you are not certain that you can afford the repayments without any chance of overstretching yourself financially.

Taking on finance deals that you really cannot afford is a very bad idea indeed. Failing to make payments will seriously damage your credit rating. If you take out a secured loan, overstretching yourself could cause you to loose your house.

When you are seeking a new loan, you need to very carefully checked through your finances and calculate if you can make the repayments comfortably.

This is very important factor; you should not put yourself in the position where you have to stretch your finances to breaking point to make loan payments. Comfortably, is the important word here, you need to make all your loan commitments without putting yourself in a position where you have to juggle your finances every month.

One way can help yourself to not get into a position where you are overstretched, is to shop around for the best loan deal available. In this internet age, the best deals for loans usually found with online brokers.

Rates of interest and terms can vary tremendously for both secured and unsecured loans, with different lenders offering different interest rates and fees. With the help of a good broker, you can shop around to find the very best rates available for you and your circumstances.

Internet brokers have a wide range of resources at their fingertips, and can quickly and easily search out the best available deals for your needs. You should not rush this stage, or make snap decisions. Taking a little time and working closely with the broker you could save a large amount of money by just be patient and researching further for just a day or two longer.

You will need to compare the loan deals against each other, especially items such as the interest rate, known as APR that each company is charging. Also, how long you will be given to make all your repayments. Consider carefully how much the monthly repayments will be and if comfortably afford them. And lastly, are there any fees and charges that the lender may impose.

The more time and energy you put into finding the correct loan for your circumstances. The more money you will save in the long run. The good news is that a good online professional broker should know best companies to approach for the type of financing you are looking for. He will know what is available, and should be up-to-date with all the new offers and terms.

He will quickly narrow down the options to a handful of lenders, which he will probably speak to informally to get a feel of if they may be right for you. Once he has narrowed down all the possibilities, you will be able to weigh up all of the options you have available.

From there, he will assist you in making any necessary calculations and ensuring that all the paperwork is in order. You will then act for you as the middleman dealing with any further questions the lender may have.

This should make searching for and applying to a company for a secured or unsecured loan quick and painless. Follow the ideas above and you should be able to avoid any financial difficulties could arise from overstretching monthly budget.

A start up business loan from a bank

2009-03-12T21:17:00.002+06:00

Start up business loans are difficult to come by. If you’re not having luck with other sources, let’s dig in and start the process of winning a start up business loan.

The Bad News About Start Up Business Loans

It’s important to note that start up business loans are a lot like personal loans. In other words, the bank does not want to lose money by taking too great of a risk. If you and/or your business are too much of a risk, you’ll have to work harder to get your small business loans approved.

Because the vast majority of startups fail within the first few years, you should know that you’re considered a greater risk if you want a start up business loan. I’m not trying to discourage you here, I’m trying to prepare you.

Start Up Business Loan Sources

If you haven’t already done so, read the article about small business loans. You’ll find a good overview and some quick ideas. Give those a shot – and pay extra attention to preparedness – but know that conventional means may not work for you. After you’ve asked your bank and credit unions for start up business loans, you’ll need to get creative.

Common sources of start up business loans are the 3 F’s:

Friends
Family
Fools

I can’t help you with the first two, but I have some ideas on the last one. Of course, these people are not really fools, they’re just more willing to take risks on start up business loans than traditional banks are. These might be known as venture capitalists or angels.

A good first step is to ask your local Small Business Administration (SBA) office for help. This organization is tasked with fostering economic growth by supporting small businesses – its mission is to help you succeed! There are a lot of general resources from the SBA that aren’t finance-related.

Next, you could visit the Kauffman Foundation. This group can point you to additional resources for your start up business loans.

Finally, About.com’s Small Business Info site has a Small Business Finance and Small Business Loans area full of ideas on financing. You can find out more about getting start up business loans, working with angels, and other methods of raising capital.

Note that alternative sources (not banks) may require that you “pay” more for your start up business loan. You may have a higher interest rate. More importantly, you may have to offer some equity in your business to receive funding. Make sure that you know all the details and analyze them carefully before you agree to anything.

Business Loan overview

2009-03-11T13:09:00.004+06:00

Business loan is one kind of lending money from financial company.It depends on certain period of time.The amount is given depends on the client application.Terms and Condition should be fullfil by the client which is given by financial company.Financial Comapny are like Bank mainely seen on this Business area,but others financial organisation are also involved here.

Business loans are changed time to time in present situation.And loan are given to many category business running.Some like industrial loan, small business loan.Big finance are given by International Financing organization.

Many loans are given small scale business,like NGO doing many country rural area.Bank also now finance auto-loan and SME loan.Now credit card also one kind of loan but system is different

Bangladesh Bank in Brief

2009-03-09T21:19:00.001+06:00

Bangladesh Bank, the central bank of the country, was established as a body corporate vide the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972) with effect from 16th December, 1971. The general superintendence and direction of affairs and business of the Bank are entrusted to a nine member Board of Directors which consists of the Governor as chairman, a Deputy Governor, three senior government officials and four persons having experience and proven capacity in the fields of banking, trade, commerce, industry or agriculture - all nominated by the government. The board, which is the highest policy making body, meets at least six times a year and at least once every quarter under the chairmanship of the Governor. The Governor, appointed by the government as the chief executive officer, directs and controls all the affairs of the Bank on behalf of the Board.

The broad objectives of the Bank are :

a) To regulate the issue of the currency and the keeping of reserves;

b) To manage the monetary and credit system of Bangladesh with a view to stabilizing domestic monetary value;

c) To preserve the par value of the Bangladesh Taka;

d) To promote and maintain a high level of production, employment and real income in Bangladesh; and to foster growth and development of the country's productive resources for the national interest

Bangladesh Bank in Brief

2009-03-09T21:19:00.000+06:00

Financial system according to Bangladesh Bank

2009-03-09T21:14:00.002+06:00

Central Bank

Central Bank and its policies
Bangladesh Bank (BB), as the central bank, has legal authority to supervise and regulate all banks and non-bank financial institutions. It performs the traditional central banking roles of note issuance and of being the banker to the government and banks. Given some broad policy goals and objectives, it formulates and implements monetary policy, manages foreign exchange reserves and lays down prudential regulations and conduct monitoring thereof as they apply to the entire banking system. Its prudential regulations include, among others: minimum capital requirements, limits on loan concentration and insider borrowing and guidelines for asset classification and income recognition. The Bangladesh Bank has the power to impose penalties for non-compliance and also to intervene in the management of a bank if serious problem arise. It also has the delegated authority of issuing policy directives regarding the foreign exchange regime.

Interest Rate Policy
Under the Financial sector reform program, banks are free to charge/fix their deposit (Bank /Financial Institutes) and Lending (Bank /Financial Institutes) rates other than Export Credit. At present, Loans at reduced rates (7%) are provided for all sorts of export credit since January 2004. With a view to controlling the price hike and ensuring adequate supply of essential commodities, the rate of interest on loan for import financing of rice, wheat, sugar, edible oil (crude and refined), chickpeas, beans, lentils, onions, spices , dates and powder milk has been temporarily fixed to a maximum of 12%.

Now, banks can differentiate interest rate up to 3% considering comparative risk elements involved among borrowers in same lending category. With progressive deregulation of interest rates, banks have been advised to announce the mid-rate of the limit (if any) for different sectors and the banks may change interest 1.5% more or less than the announced mid-rate on the basis of the comparative credit risk.

Recently Banks have been advised to upload their deposit and lending interest rate in their respective website.

Capital Adequacy of the Banks
With a view to strengthening the capital base of banks and making them prepare for the implementation of Basel-II Accord, banks are required to maintain Capital to Risk-Weighted Assets ratio 10% at the minimum with core capital not less than 5% effective from December 31, 2007. However, minimum capital requirement (paid up capital and statutory reserve) for all banks will be Tk.200 crore as per Bank Company (Amendment) Ordinance, 2007. Banks having capital shortfall will have to meet at least 50% of the shortfall by June, 2008 and the rest by June, 2009.

Revaluation reserves of held to maturity (HTM) securities (up to 50% of the revaluation reserves) has been added to the components of supplementary capital. Besides, 'Hedging the price risk of commodity transactions' has been included in Short-term self liquidating trade related contingencies.

Loan Classification and Provisioning
In order to strengthen credit discipline and bring classification and provisioning regulation in line with international standard, Bangladesh Bank issued a master circular on loan classification and provisioning through BRPD circular no 5 dated June 5, 2006. The revised policy covers an independent assessment of each loan on the basis of objective criteria and qualitative factors which is appended below :

Any Continuous Loan/Demand Loan if not repaid/renewed within the fixed expiry date for repayment will be treated as past due/overdue from the following day of the expiry date. A Continuous Loan/Demand loan/Term Loan which will remain overdue for a period of 90 days or more, will be put into the "Special Mention Account(SMA)". Interest accrued on "Special Mention Account (SMA)" will be credited to Interest Suspense Account, instead of crediting the same to Income Account.

A Continuous Loan/Demand loan is classified as 'Sub-standard' if it is past due/over due for 6 months or beyond but less than 9 months, classified as `Doubtful' if it is past due/over due for 9 months or beyond but less than 12 months and classified as `Bad/Loss' if it is past due/over due for 12 months or beyond.

If any installment(s) or part of installment(s) of a Fixed Term Loan is not repaid within the due date, the amount of unpaid installment(s) will be termed as `defaulted installment'. In case of Fixed Term Loans, which are repayable within maximum five years of time- If the amount of 'defaulted installment' is equal to or more than the amount of installment(s) due within 6 (six) months, the entire loan will be classified as "Sub-standard", if the amount is equal to or more than the amount of installment(s) due within 12 (twelve) months, the entire loan will be classified as "Doubtful" and if the amount is equal to or more than the amount of installment(s) due within 18 (eighteen) months, the entire loan will be classified as "Bad/Loss".

In case of Fixed Term Loans, which are repayable in more than five years of time and if the amount of 'defaulted installment' is equal to or more than the amount of installment(s) due within 12 (twelve) months, the entire loan will be classified as "Sub-standard". If the amount is due within 18 (eighteen) months, the entire loan will be classified as "Doubtful" and if the amount is due within 24 (twenty four) months, the entire loan will be classified as "Bad/Loss".

The Short-term Agricultural and Micro-Credit will be considered irregular if not repaid within the due date as stipulated in the loan agreement. If the said irregular status continues, the credit will be classified as 'Substandard ' after a period of 12 months, as 'Doubtful' after a period of 36 months and as 'Bad/Loss' after a period of 60 months from the stipulated due date as per loan agreement.

Besides, if any situational changes occur in the stipulations in terms of which the loan was extended or if the capital of the borrower is impaired due to adverse conditions or if the value of the securities decreases or if the recovery of the loan becomes uncertain due to any other unfavourable situation, the loan will have to be classified on the basis of qualitative judgement.

As regards the provision, banks are required to maintain General Provision against all categories of loans along with off-balance sheet items in the following manner:

Particulars		Short Term Agri. Credit and micro credit	Consumer Financing			Small Enterprise Financing	All other Credit
Particulars		Short Term Agri. Credit and micro credit	Other than Housing Finance & Loans for Professionals to set up business	Housing Finance	Loans for Professionals to set up business	Small Enterprise Financing	All other Credit
UC	Standard	5%	5%	2%	2%	1%	1%
UC	SMA	-	5%	5%	5%	5%	5%
Classified	SS	5%	20%	20%	20%	20%	20%
	DF	5%	50%	50%	50%	50%	50%
	B/L	100%	100%	100%	100%	100%	100%

Besides, banks are required to maintain general provision against Off-balance sheet exposures in the following manner:
(i) @ 0.5% provision effective from December 31, 2007 and
(ii)@ 1% provision effective from December 31, 2008 .

Other instructions such as Eligible securities in determining base for provision along with a revised format for submitting the report on classification of loans and advances are also provided in the respective circulars.

Reference: BRPD circular no: 05, dated June 5, 2006.
BRPD circular no: 08, dated August 07, 2007
BRPD circular no: 10, dated September 18, 2007
BRPD circular no: 05, dated April 29, 2008

Foreign Exchange System
On March 24, 1994 Bangladesh Taka (domestic currency) was declared convertible for current transactions in terms of Article VIII of the IMF Articles of Agreement. Consequent to this, current external settlements for trade in goods and services and for amortization payments on foreign borrowings can be made through banks authorized to deal in foreign exchange, without prior central bank authorization. However, because resident owned capital is not freely transferable abroad (Taka is not yet convertible on capital account), some current settlements beyond certain indicative limits are subject to bonafides checks.

Direct investments of non-residents in the industrial sector and portfolio investments of non-residents through stock exchanges are repatriable abroad, as also are capital gains and profits/dividends thereon. Investment abroad of resident-owned capital is subject to prior Bangladesh Bank approval, which is allowed only sparingly.

Exchange Rate Policy
The exchange rate policy of Bangladesh Bank aims at maintaining the competitiveness of Bangladeshi products in the international markets, encouraging inflow of wage earners' remittances, maintaining internal price stability, and maintaining a viable external account position. Prior to the inception of floating exchange rate regime, adjustments in exchange rates were made while keeping in view the trends of Real Effective Exchange Rate (REER) index based on a trade weighted basket of currencies of major trading partners of Bangladesh and the trends of other important internal and external sector indicators. Under the existing floating exchange rate regime (that started from 31/05/2003), the interbank foreign exchange market sets the exchange rates for customer transactions and interbank transactions based on demand-supply interplay; while the exchange rates for the Bangladesh Bank's spot purchase and sales transactions of US Dollars with ADs is decided on a case to case basis. Bangladesh Bank does not undertake any forward transaction with ADs. The ADs are free to quote their own spot and forward exchange rates for interbank transactions and for transactions with non-bank customers. However, along with intervention in the taka money market, the US dollar purchase or sale transactions take place by the Bangladesh Bank as needed, to maintain orderly market conditions.

Small business loans for women

2009-03-08T19:57:00.002+06:00

In the past decade, the number of women-owned businesses has boomed, and these businesses are just as successful as those owned by men. Women seeking capital to finance their small business ventures can take out loans. Loans are available for women starting up small businesses of all types-bed and breakfasts, catering, entertainment, pet supplies photography, greeting cards, craft businesses, consulting, brokerage, real estate, online businesses and more.

There are many loans are available for women starting small businesses.

- Within the past decade, the number of small businesses owned by women has increased dramatically. - Women tend to have a different business sense than men, and their non-traditional style of running a company has been successful, and given women a different view on possibilities and opportunities. - Seeking and finding startup venture capital is important in starting a new business. One of the many different available sources for money, aside from grants, investors and friends, is in loans. - There are loans created especially for women. In some of these loans, applications will focus on your character, credit, experience and reliability rather than assets. These loans can be for as much as $250,000 or more. - For those with young children, special loans are available for women who wish to create a small home-based business. - Take the VentureWorthy survey to find out more about small business loans for women.

Grant Opportunities Available for Women Business Owners

2009-03-08T19:54:00.001+06:00

You are a woman business owner and there are many things for you to focus on -- especially how to find money for your business so it can grow and thrive. Did you know that some funding sources out there specifically target women entrepreneurs? If not, you should know about them. Check out the information below to see where to go for loans, scholarships, and other sources of funding. If you have anything to add from your own experience, let us know at info@womanowned.com so we can pass it along to other women entrepreneurs.

Small Business Administration (Office of Women's Business Ownership)
(www.sba.gov/womeninbusiness) - The SBA is doing more than ever to help level the playing field for women entrepreneurs, who still face unique obstacles in the world of business. At every stage of developing and expanding a successful business, the Office of Women?s Business Ownership is here to counsel, teach, encourage and inspire. Check out their "Hot List" of outside resources.

Count-Me-In
(www.count-me-in.org) - This is a new fundraising organization that raises money from women for women. Loans are given from $500 to $10,000 (for first time recipients the maximum amount is $5,000). Count-Me-In looks like a great resource with funding consideration based on experience over credit history. Check them out! The CEO, Nell Merlino, started Take Our Daughters To Work Day in 1993.

Grant Opportunities Available for Women Business Owners

2009-03-08T19:54:00.000+06:00

Business Loans Information

2009-03-07T23:19:00.003+06:00

Business loans are an important part of a company's survival. Money is essential to making companies grow and in making investments.

A key point of funding that many businesses take advantage of is personal savings. With personal savings there is no one to repay a debt to, so issues such as interest and monthly payments become moot. Consider it a personal-favor business loan. The obvious risk is that if your business does fail, it is your personal funding that is taking the hit.

Business Loan Org brings you vital information on the financial management of your business. There are a broad number of ways to acquiring the necessary funding, including the United States Small Business Administration (SBA). They provide numerous programs to help businesses in various situations.

While money is a large part of keeping a business intact, there are many other important aspects such as knowledge, experience, and organization. Keeping a business plan and following a schedule can be the differance between failure and success. When loaning your funds, take a second and think of how much you will need and why. The cost of borrowing money can be very high in the end. Some things to think about include:

How badly do you need the money? Will it be to startup or expand your business? Or is it just to ensure things go smoothly?
Are you in great risk if you don't receive the loan? Will your company fall without this boost in funding?
What state is your business currently in? Growing, stable, falling? Businesses that are not fairing as well will not have as good funding terms.
How capable is your leading management? Without a key focus on what you are willing to do with the money can lead to not getting a loan. Loaners are very keen on knowing what is going to be done with the money, and how you plan on repaying it.

Starting An International Bank

2009-03-07T18:01:00.001+06:00

When notorious bank robber Willie Sutton was asked why he robbed banks, he reportedly replied, "Because that's where the money is." International investors have discovered for themselves that owning a bank can be even more lucrative than a career in bank robbery. Because running one's own bank dramatically demonstrates the benefits of offshore financial operations, it's a good case study of what can be accomplished once the investor breaks free of domestic confines.

Banking is not as exotic as it might seem at first glance. A bank is merely a company organised much like other companies. It is built upon trust and it flourishes, as all companies do, by keeping promises. The following material is of equal importance to the user as well as the organiser of any international business organisation.

Getting Started
Although it is difficult to start a bank in most of the large bureaucratic countries, there are many nations whose laws are not as strict. In fact, there are jurisdictions where people have been able to start banks just by incorporating a company with the word bank in its name. This has allowed a number of "questionable" figures and operations to damage the reputation of other banks. When this happens, the local government often restricts the issuance of new licenses and tries to clear the deadwood out from among the old licensed firms. Other jurisdictions, such as the Cayman Islands, have had reasonable bank regulations for some time and so have prospered as financial centres.

When just starting out in banking at a low level of capitalisation, the best strategy is to incorporate the bank in as good a banking environment as one can afford, then to build up enough of a reputation for keeping commitments to start doing business in a better location. Most of today's large banks started with one person or a small group of people who offered nothing but their promises and reputations.

Bank formation is a very political activity everywhere, so it's impossible to know what jurisdiction will be best by the time this introduction is printed. Once a site is selected, a local professional will help obtain the bank license. The local assistance of a registered agent will be needed, in any case, and a well - known local professional can open many doors during the organisation process. A travelling to selected locale to find one. The formation process itself can teach a great deal about how things are accomplished in the chosen haven and in the offshore world in general.

A short aside about preparation is in order here. It is important to learn as much as possible about investing before moving into the international investment community. Someone uncomfortable doing business with his local bank or broker will not enjoy overseas dealings. It is essential to put in the preparation time required by complex ventures, otherwise one may be better off accepting the services of an established international organisation.

One shortcut is to buy a bank that is already in existence. This saves a good deal of time and should end up costing about the same as doing it from scratch. There are companies that make their living by establishing banks and then selling them to interested buyers. These companies range from clean to shady and the normal rules apply about knowing what one is buying before paying. It's a good idea to contact the regulatory authorities in the country where the bank is located to check on the company's reputation. In addition, contact an independent local professional in the area to get an opinion on the legitimacy of the proposed sale.

Find the right funding for your business

2009-03-06T18:28:00.006+06:00

At some point almost all businesses need a business loan. Decision Finance has helped thousands of businesses find the right finance solution for them. This page has information about the many different options available and allows you to get instant online quotes to help you find the right type of finance quickly.

What do you need?

Start-up Business Loan
Asset Purchase
Commercial Mortgage
Cash flow Finance

Decision Finance can help you with all of the above.

Types of business loans:

Invoice Finance
Business Overdrafts
Commercial Mortgages
Leasing / Asset Based Lending
Factoring
Invoice Discounting

Invoice Finance

Invoice Finance is a flexible form of funding available to businesses, that often companies aren’t familiar with. Decision Finance is the UK’s leading invoice finance provider.

An invoice finance facility allows you to access money owed by your customers in unpaid invoices within 24 hours of issuing the invoice. If your normal terms of payment are 30 days you could be paid 29 days earlier. Invoice finance is often needed because a company is doing so well their cash flow simply can not keep up!

Invoice finance products have historically been only used by larger companies but are now accessible to all sizes of business. Many lenders will operate on your behalf, so that your customers don’t even need to know you are using the facility.

To find out how much cash flow you can free up use our online tool. It takes just a few minutes (only 3 pages) and at the end you will get an instant quote tailored to your business. Join thousands of other successful UK businesses today.

Business Overdrafts

Business overdrafts are much like personal overdrafts. Your bank will give you an agreed limit you can use. This is available whenever you need it.

Your first point of contact for this type of loan should be your bank, as using your pre-existing relationship is beneficial for this type of unsecured lending.

Commercial Mortgages

If you are looking for a business loan to finance property or land then you most likely need a commercial mortgage. Decision Finance has been helping businesses find the right commercial mortgages for over 4 years.

Leasing / Asset Based Lending

At some point many businesses need an expensive piece of equipment or machinery. Leasing products allow you to acquire what you need without acquiring legal title.

There are many different types of asset based lending available. Some allow you own the product after the lease period.

To find out which product is best suited to your business, complete our online form.

Everyone dreams of having a car and if you have the funds to do so,

2009-03-03T21:19:00.000+06:00

Getting an auto loan is no longer as hard as it used to be because of the number of competitors in the market today. Personal auto loans are perfect for those who want to enjoy a brand new vehicle or even those who simply want to drive a car for work. There are certain criteria you should meet in order to get good auto loan rates, as well. Some of the criteria you should look into include the following:

• Verifiable income is of the utmost importance. You need to have proof of income that can be verified. In addition, lenders will also ask for your residential address, copies of your tax returns, and your bank statements. Whatever type of traditional company you chose, the lender will inevitably look at your credit history. If you are applying for bad credit auto loans, the requirements might be more lenient but you will need to pay high auto loan rates.

• Interest rates are important factors to consider. Lenders determine the auto loan rates they charge based on the type of car you want to buy, your credit history, and the timeline for the loan. Typically, bad credit auto loans have duration of one to four years.

• The type of financing is important as well. There are two ways to get auto loans: direct financing and indirect financing. Direct financing occurs when financial institutions such as banks and non-traditional lenders approve your loan. Indirect auto loan financing comes from the car dealer. Both options are available for auto loan financing with bad credit.

• Choosing between secured or unsecured financing is an important factor you need to consider when it comes to getting fast approval. You should determine the advantages and disadvantages between the two and find out which would suit your capability better.

The criterion revolves around three aspects: credit, collateral, and capacity. It is important to assess each of the three factors carefully before you decide to take advantage of any auto loan offer.

Your Bad Credit Cannot Stop You from Driving Your Own New Car

Everyone dreams of having a car and if you have the funds to do so, there is nothing like it, but if you do not have the funds, you can always opt for a bad credit car loan. Moreover if you choose to have a bad credit car loan, you can use it to your advantage to create a good credit history. It does not matter whether you apply for this loan through a dealer or online as the basic procedure remains the same.

You Can Get Auto Loans, But Be Realistic About Your Problems With Credit

Across the world there are millions facing problem with credit. Being among millions of Americans, makes it possible for you to get a bad credit auto loan but requires a realistic idea of the effect your problem with credit will have on the loan you eventually get. A history of problem with credit has the same effect on auto loans as it does on credit cards.
Read more...

Why Not Use the Web to Knock Down the Interest Rates on Auto Loans?

We all want auto loans that are free of all hassles and charge the lowest interest rates, right? If you, too, are on the lookout for such auto loans, the best place to find them is online. There are a host of websites offering lots of online options of auto loans to choose from. Now you don't even need to visit a bank or a credit union to get your loan.
Read more...

Understanding Auto Loans

It's not hard to understand what auto loans are for, but knowing their intricacies is often a whole new ballgame. An auto loan is essentially a binding agreement between a lender and a borrower who uses the lender's funds to get a car.
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Tips to Speed up the Approval for Auto Loans

Are you interested in auto loans or have you availed one of late? Do you know that you might be simply wasting away thousands of dollars without even realizing it? Take note: if the APR for your car loan is more than 3%, you should seriously think about getting a car loan refinance. Even those who are getting decent APR auto loans should consider refinancing, just because of the amount of money you can save through refinancing.

Tips to Drive Away with Low Interest Rate Auto Loans

When it's time to buy a new car, it is the interest rate of auto loans that can make a major difference to your payment and the amount you pay for the car overall. Even a few points difference on the interest rate can translate into thousands of dollars over the duration of the loan. However it is possible for you to avail of low interest rate auto loans from the dealer. Keep certain tips in mind to ensure that you get yourself the lowest rate.

Tips On Buying A New Car

After purchasing a home, an automobile is the most expensive purchase a consumer will make. Consumers pay an average of $28,400 on their new car purchase. This underscores the importance of savvy negotiating and knowing what you're getting in to.
Read more...

Tips for First Time Car Buyers to Get Online Auto Loans

With online auto loans, buying a car becomes remarkably easy and hassle-free. The trick is to nail the best loan offer from the hundreds of websites that offer online auto loans. With the help of the Internet resources of online auto loans, you can be prepared to find the best possible deal from the car dealership. This is all the more valid for first time buyers. Online auto loans websites are a quick and easy option for getting your car financing before approaching the dealership.

Things to Do Before Applying for Auto Loans

When you go to apply for any auto loans, you want to know that you have an excellent chance of approval. Unfortunately, however, not everyone's credit is good enough to attain this goal. There are some pretty easy things that you can do to help your chances of being approved for an auto loan within the next 3 to 6 months.
Read more...

The Risks Of Using The Internet To Find Auto Loans

Anyone browsing through the automotive trade press, general media, or credit union trade publications will be familiar with the connection between the Internet and auto loans. A lot of the search for good auto loans takes place via the Internet. These commercials would have us believe that the future of the automobile industry is an electronic one: members will log on to a manufacturer's web site; order vehicles online specifying the colors, and features; and then arrange for auto loans from the lowest price lender.

The Reality Behind Zero Interest Auto Loans

Low and zero-interest rate auto loans offers from automakers are becoming more attractive, due to the rising interest rates on other lenders' car loans. So, the era of free money to finance your new car, the 0% auto loans offered by manufacturers, isn't over as yet. The appeal of zero interest auto loans lie in all the money you think you'll save.
Read more...

The Hidden Truth About Auto Loans

Auto loans are in high demand today. In America, millions of people are heading for auto loans to buy their dream cars. As a result, lending agencies providing auto loans are also mushrooming all over the country.
Read more...

The Best Online Auto Loans Deals

You may be looking for the best online auto loans. Or, you may be facing a problem with your credit. Recent bankruptcy? No credit history? Perhaps you're hoping to rebuild your credit with a fresh start on a new car loan. Whatever your situation, you can find out about getting the best online auto loans deals for your next vehicle, whether it's a car, truck, van or SUV.
Read more...

The Best Auto Loans Are Online

Auto loans can help you fulfill your dream to own a new car. Though, cash payments are always the simplest and easiest, very few of us can afford to buy a car with cash, especially a new car. And auto loans from a dealer can add thousands to the price of your vehicle. But don't despair.
Read more...

Process to apply Small business Loan

2009-03-02T22:18:00.001+06:00

The vast majority of people who decide to go into business for themselves will, at some point, need a small business loan. Obtaining such a loan can be achieved through several different methods, including:

A direct bank loan;
A government guaranteed loan;
A private entity loan.

Whichever method is ultimately explored, certain factors will be taken into consideration and certain steps should be followed.

Factors that will always be taken into consideration, no matter the loan source, include:

The collateral available;
The equity available;
Your credit rating;
Your character;
Your experience in the field as well as in business management; and
The written business plan.

Follow the steps below to prepare your application for a small business loan.

How to Apply for a Small Business Loan

Step1

If you have not already done so, meet with representatives of the SBA or their corresponding Small Business Development Centers (SBDCs). Obtain as much information from them as possible regarding current SBA loan requirements and specifications; SBA loan procedures; SBA loan practices; and any other small business loan information they might have. If they have one, also get a business plan outline.

Step2

Meet with one or more local banks regarding small business loans. Obtain information about their loan requirements and specifications, application process, loan practices, and any other small business loan information that they might be able to provide.

Step3

Meet with any local private entities that traditionally make small business loans. Obtain information about their loan requirements and specifications, application process, loan practices, and any other small business loan information that they might be able to provide.

Step4

Review all of the materials that you have gathered and prioritize them, beginning with the loan that appears to offer your best chance for success. Do not apply for multiple small business loans at the same time. Most entities do not want to be pitted against one another.

Step5

Starting with the small business loan that you believe has the best chances of successful achievement, make a list of everything required in their loan process.

Step6

Using the small business plan outline provided by the SBA, bank, or lending entity begin drafting your plan. In most instances, business plans must include information like:

A general description of the business, including the industry under which it falls, the specific type of business, and the trends within both;
An identification of the business's potential market(s);
Information about the business's competition;
A list of the products and/or services the business will provide;
A detailed description of where the business will be located including its address, square footage, internal and external description of the property, and anything else you can provide;
The pricing structure for the business;
A list of marketing strategies to be used for the business;
A detailed list of the business's needs to include capital, equipment, supplies, personnel, and anything else;
A detailing of the financial requirements to get the business up and running as well as to function until it begins making its own profits;
A resume for each potential employee of the business, including yourself;
Projected cash flows for at least the first year of the business's operation;
A projected profit and loss statement for at least the first year of the business's operation;
A balance sheet; and
A break-even analysis.

Step7

Complete all loan application paperwork required for the specific loan for which you are applying.

Step8

Obtain at least three letters from individuals who can attest to your character and/or experience in the industry or business management.

Step9

If an SBA, SBDC, or other loan officer is available, make an appointment for him or her to review your loan paperwork. Make notes of any changes they recommend to the business plan or other information as well as any additional pieces of information they feel important to the application.

Step10

If changes were recommended by the loan officer reviewing your paper, make them as suggested. Also obtain or prepare any additional information that they suggest should be added to the paperwork.

Step11

Finalize your business plan and paperwork, making certain that everything required is provided before making an appointment with the loan officer capable of approving your loan.

Step12

Make an appointment with your approving loan officer. Review your paperwork with him or her, with an eye toward making certain that your paperwork is complete.

Step13

If necessary, obtain or prepare any additional paperwork required in order for your loan officer to make a loan determination.

Step14

Make yourself available to your loan officer until such time as he or she can make a loan decision.

Step15

If your first loan application is denied, move on to the next possible loan and begin the process over again.

Business Bank Loans

2009-03-02T19:32:00.001+06:00

What Does it Take to get Good Business Bank Loans?

By Justin Pritchard, About.com

When a business first starts operation, a business bank loan is often what keeps things moving. How do you get a good business bank loan? It depends on the nature of your business. This page is intended for smaller businesses trying to find funding through business bank loans.

Overview of Small Business Bank Loans

The key thing to know about small business bank loans is that you are often judged on your personal credit. If your business had a long and successful history, you wouldn’t be reading this. Instead, you’d have lenders beating down your door with loan offers.

Building a Foundation for Business Bank Loans

While we need to work on challenges specific to business bank loans, we should first make sure that you are a viable candidate for a personal loan.

If you haven’t already, you need to build a credit history to give banks an idea of how responsible you are. Also, you need to know what they see when they pull your credit for a business bank loan. Take advantage of the U.S. government’s free credit report program – and continually monitor your credit going forward.

Specifics of Business Bank Loans

Now that we’re sure you’re a good borrower, let’s move forward. Business bank loans come in a variety of flavors, from a variety of sources. Below you’ll find two good articles discussing the topic.

For the more established business, you’ll need to cover the basics discussed on the page about small business bank loans. You’ll learn how to prepare and where to go.

For brand-new businesses, or those who might be more of a risk, you’ll want to know the basics of startup business bank loans. This page will alert you to some alternative funding sources in addition to your typical banks. In particular, you should investigate peer to peer lending options.

How Peer to Peer Lending Works

The best way to get a business bank loan is to take action. It is surprisingly similar to the best way to get customers for your business. You’ll have the best results with detailed preparation, and by letting people know about you and your business. Once you’ve done that, start pounding the pavement for a good lender.

YOUR CONCERNS ARE THE WORLD BANK'S PRIORITIES

2009-03-01T23:34:00.004+06:00

Our work in more than 100 countries is challenging, but our mission is simple: to help reduce poverty. Over the past 20 years the proportion of people living in poverty in the developing world fell by half—from 40 percent to 21 percent. Meanwhile, in the past few decades, life expectancy in developing countries has increased by 20 years, the number of children dying before the age of five has been reduced 50 percent, and adult illiteracy has been halved to 25 percent. And yet, over a billion people still struggle to survive on a dollar a day. The World Bank seeks to help those people through our support for social services like health, nutrition, and education as well as for infrastructure and policies to improve governance and fight corruption. Today, countries themselves are coming to us with their own plans for helping poor people, and we work together in real partnership.

The World Bank is a vital source of financial and technical assistance

2009-03-01T23:32:00.001+06:00

The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the common sense. We are made up of two unique development institutions owned by 185 member countries—the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

Each institution plays a different but collaborative role to advance the vision of an inclusive and sustainable globalization. The IBRD focuses on middle income and creditworthy poor countries, while IDA focuses on the poorest countries in the world. Together we provide low-interest loans, interest-free credits and grants to developing countries for a wide array of purposes that include investments in education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource management.

Getting a Bank Loan

2009-03-01T21:29:00.002+06:00

Getting a Bank Loan

What are the three `c's`?
Traditionally bankers look at what are called the three `c's`: character, credit and collateral. Character means more than not having a criminal record. It means that the banker feels confident that you are not going to suddenly disappear for parts unknown if the business runs into trouble. Specifically bankers like to see ties to the community such as long residence, family ties, and home ownership. A clean credit history is important. A couple late credit card payments shouldn't be a factor, but missing mortgage payments for three months in a row will require a good explanation. Bankers like good character and good credit, but they live for solid collateral. Equipment, buildings and trucks--that's the kind of stuff that bankers really like for collateral--solid value and likely to be worth a lot even if the business goes bust. Inventory, raw material and goods are second choices for collateral--they will lose their value more quickly than fixed assets but still be worth something.

Can you get a business loan?
The criteria for business loans varies much more widely than for consumer loans and often varies quite a bit from one banker to the next at even the same bank! However here are some rules of thumbs to give you an idea of your chances of getting a loan.

Getting a loan for a new business is tough

Fixed assets such as machinery or buildings can almost always be financed

Current assets such as inventory or goods in process increase your loan chances

2+ years of profitable operation greatly increases your loan chances

The larger the owner's investment in the business the better your chances of getting a loan

Loans to small corporations will often have to be personally guaranteed by a shareholder

It is difficult to get loans to offset operating losses

It is usually possible to get a loan to modestly expand a profitable business

How to get the bank's money, even when the bank says `no!`
Banks have much more lenient standards for lending to consumers than to businesses. So what you can do is borrow the money from the bank as a consumer and then turn around and personally invest the funds in your business. Just make sure that you never lie how about you are going to use the proceeds on a loan application. For example you could apply for a home equity loan to tap any available equity in your house. Then take the funds and invest them in your business. The bank feels safer because their statistics show that home equity loans or much more likely to be repaid than loans for brand new businesses. No equity in your home? Maybe you can get a car loan?

Getting an appointment with a bank
Don't just show up in person--first make an appointment by phone. Ask the receptionist in the bank or the loan department for the name of the appropriate person who would handle your loan request. Of course it would be better, but not necessary, to get a referral from a friend or advisor such as your lawyer or accountant. When you get the name of the appropriate loan officer simply ask for an appointment. Don't offer any more details over the phone, unless the loan officer requests them. The more details you offer over the phone, the greater the chances you won't get the appointment at all. Sound confident. Sound matter of fact. Sound like you don't even need the money... that's the kind of person that loan officers like to lend to.

For More information on Business Plans you may want to get a copy of the book "Adams Streetwise Business Plans" (430 pages, $17.95, Adams Media Corporation). This book includes complete sample business plans; detailed step by step instructions for writing a business plan; suggested text for each step of the business plan; instructions and worksheets for creating complete financials.

Commercial mortgage

2009-03-01T21:16:00.001+06:00

A commercial mortgage is a loan made using real estate as collateral to secure repayment.

A commercial mortgage is similar to a residential mortgage, except the collateral is a commercial building or other business real estate, not residential property.

In addition, commercial mortgages are typically taken on by businesses instead of individual borrowers. The borrower may be a partnership, incorporated business, or limited company, so assessment of the creditworthiness of the business can be more complicated than is the case with residential mortgages.

Some commercial mortgages are nonrecourse, that is, that in the event of default in repayment, the creditor can only seize the collateral, but has no further claim against the borrower for any remaining deficiency. The general reason for this is twofold: many laws significantly prevent the creditor from going after the borrower for any deficiency, and mortgages structured for sale as bonds give a higher priority to constantly receiving some sort of income and therefore require a clause which allows the lender to take the property immediately, regardless of bankruptcy proceedings that the borrower might be going through

Twelve Tips for Getting Your Bank Loan Approved

2009-02-28T09:49:00.001+06:00

Securing a bank loan to finance your small business is getting to be more difficult. Here are twelve basic steps you must take before going to the bank for a business loan.

By Isabel M Isidro
Managing Editor

Finding the money needed to start a new business is almost always one of the most difficult obstacles new owners face. The most likely (and easiest) sources of capital are your families, friends and own savings. However, you should not overlook institutional sources as well.

Without a previous track record in business, securing a bank loan may be difficult. Banks cite risk factors and increasing costs of servicing small accounts as the primary reasons for minimizing their exposure to small businesses. Still, it can be done. Here are the steps that you should take to improve your chances of getting that much-needed bank loan:

1. Keep in mind that to stay in business banks need to make loans. Do not be afraid to ask for one. That is what the loan officer wants you to do. To increase your chances of getting a loan, look for a bank that is familiar with your industry and who has done business with companies like yours. Seek out banks that are active in small business financing. Some banks lend on a conventional basis (lending money without government support), while some banks participate in government programs (in the form of government participations involving direct government funds or loan guarantees). However, be aware that banks often demand stiff collateral requirements for start-ups.

2. As an entrepreneur, make sure that you are thoroughly prepared when you go to your banker's office to request a loan. You need to show your bankers that a loan to you is a low-risk proposition. Have on hand a completed loan application, copies of cash flow and financial statement projections covering at least three years, and your cover letter.

3. Learn to anticipate every question that he or she has. Remember, the combination of information and preparation is the most powerful negotiating tool in the world. A confident and thoroughly prepared borrower is four times more likely to have his or her loan approved than a borrower who does not know the answer to some of the basic questions a banker asks. To show the extent of your preparedness, your business plan should also include answers to your banker's questions. These questions normally are:

How much money do you need? Be as exact as possible; although adding a little extra for contingencies will not hurt.

How long do you need it for? Be prepared to go into detail about what the money will do for you and why your business is a good risk.

What are you going to do for it? Businesses use loans for three things: to buy new assets, pay off old debts, or pay for operating expenses.

When and how you will repay for it? Your cash flow projections should provide a repayment time frame. Convince the banker of the long-term profitability of your business and your ability to repay the loan by using your financial projections and business plan.

What will you do if you do not get the loan?

4. Do not take an apologetic and negative attitude. Keep your negativity in check. Present yourself as an entrepreneur who can and will repay the loan. Boost your image by providing your loan officer with any promotional materials about your business, such as brochures, ads, articles, press releases, etc.

5. Dress in a professional manner for the interview. This is a business transaction, so treat it as such.

6. Do not stretch the truth in your loan application. Broad, unsubstantiated statements should be avoided. The lender can easily check many of the facts on your application. If you cannot support statements with solid data, then don't make them. Do your homework and spend time doing research to be able to support everything you say, including every single number in your projections. It is best to keep projections, assets lists and collateral statements on the conservative side.

7. Be sure all your documents are neat, legible and organized in a cohesive and attractive manner. Type all your loan documents. Handwritten documents look unprofessional. Don't forget to include a cover letter.

8. Do not push the loan officer for a decision. Doing so might result in a rejection. Your banker cannot make a decision until all your documentation is complete. To ensure a speedy decision, make sure that your application is complete.

9. Be confident. An attitude of confidence enhances your chance of getting the loan. Show that you can make a success out of the money that the bank will lend to you. Visualize in your mind the positive results of your bank application.

10. Keep trying one lender after another until you get your loan. To improve your position as you change bankers and banks, the best way is to ask for a referral from a successful entrepreneur. Before you decide to approach a bank directly, find an associate, friend or acquaintance that is in good standing with the bank to give you a good referral. Bankers tend to deal more favorably those who were referred to them by their best customers.

11. Failure to discuss risk in your application. You must remember one thing: there is no business without risk. If you do not discuss risk, the bankers will assume that you haven't thought about risk. Let's face it - try as we might, we cannot plan for everything, for every contingency, for every turn of events. Bankers would want to know if you have planned for the major risks and how you intend to manage it.

Then, there is also the risk of too much success. The demand for your products or service may exceed well beyond your expectations, and they would want to know how you intend to handle success.

12. Remember that the first loan is usually the hardest to get. Bankers prefer to lend money to borrowers who have borrowed at least once and have paid back at least one loan on time. They are not venture capitalists that make high-risk loans regardless of the profit prospects of your business. Bankers prefer to lend to low-risk, low profit ventures than to high risk businesses or those with no record of accomplishment.

Types of loans

2009-02-28T09:41:00.001+06:00

Types of loans

[edit] Secured

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan.

A mortgage loan is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security — a lien on the title to the house — until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.

In some instances, a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter — often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer.

A type of loan especially used in limited partnership agreements is the recourse note.

A stock hedge loan is a special type of securities lending whereby the stock of a borrower is hedged by the lender against loss, using options or other hedging strategies to reduce lender risk.^{[citation needed]}

A pre-settlement loan is a non-recourse debt, this is when a monetary loan is given based on the merit and awardable amount in a lawsuit case. Only certain types of lawsuit cases are eligible for a pre-settlement loan.^{[citation needed]} This is considered a secured non-recourse debt due to the fact if the case reaches a verdict in favor of the defendant the loan is forgiven.

[edit] Unsecured

Unsecured loans are monetary loans that are not secured against the borrowers assets. These may be available from financial institutions under many different guises or marketing packages:

credit card debt
personal loans
bank overdrafts
credit facilities or lines of credit
corporate bonds

The interest rates applicable to these different forms may vary depending on the lender and the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974.

[edit] Demand

Demand loans are short term loans that are atypical in that they do not have fixed dates for repayment and carry a floating interest rate which varies according to the prime rate. They can be "called" for repayment by the lending institution at any time. Demand loans may be unsecured or secured.^[3]

[edit] Abuses in lending

Predatory lending is one form of abuse in the granting of loans. It usually involves granting a loan in order to put the borrower in a position that one can gain advantage over him or her. Where the moneylender is not authorised, it could be considered a loan shark.

Usury is a different form of abuse, where the lender charges excessive interest. In different time periods and cultures the acceptable interest rate has varied, from no interest at all to unlimited interest rates. Credit card companies in some countries have been accused by consumer organisations of lending at usurious interest rates and making money out of frivolous "extra charges". ^[4]

Abuses can also take place in the form of the customer abusing the lender by not repaying the loan or with an intent to defraud the lender.

what is loan?

2009-02-28T09:36:00.003+06:00

Loan
From Wikipedia, the free encyclopedia
Loan (disambiguation)loan is a type of debt. This article focuses exclusively on monetary loans, although, in practice, any material object might be lent. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.

It is commonly believed that the borrower initially receives an amount of money from the lender, to be paid back, usually but not always in regular installments, to the lender. In fact, the lender, whether a bank or credit card company, does not provide any cash to the borrower, but simply extends “credit.” ^[1] The lender does this by making a credit entry into the financial account (e.g. savings or checking) of the borrower; the value of this credit is equal to the amount of the loan. At the same time, the bank, for example, marks the loan as a liability in one part of their accounting system, and an asset in another part. The amount of the asset is equal to the amount of money the borrower promises to pay back, known as the principal.

In this way, the bank or other lending institution creates money, which the borrower is now free to “spend.”

In addition to the principal, the lending institution generally charges the borrower a fee, referred to as interest on the debt, for the privilege of using this newly-created money. Note that the lender acts merely as an intermediary between the borrower and the party providing the goods or services that the borrower obtains with her loan money. The lender is not required to, and typically does not, furnish any tangible assets such as cash money.

In essence, the lending institution creates money out of thin air, by accounting entries, and makes a substantial profit in the process.^[2] For example, if the interest on the loan is 6 percent, to be paid off in 30 years (a typical home mortgage contract), the borrower will end up paying more than double the amount of the loan. If the contract is for a loan of $100,000, the borrower at the end of the contract period will have paid back $ 215,838. The lender’s profit is greater than the original loan amount.

A loan is of the annuity type if the amount paid periodically (for paying off and interest together) is fixed.

A borrower may be subject to certain restrictions known as loan covenants under the terms of the loan.

Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding.

Legally, a loan is a contractual promise between two parties where one party, the creditor, agrees to provide a sum of money to a debtor, who promises to return the money to the creditor either in one lump sum or in parts over a fixed period in time. This agreement may include providing additional payments of rental charges on the funds advanced to the debtor for the time the funds are in the hands of the debtor (interest).

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Loans for Business

Dutch Bangla Bank

Brac Bank Limited (Bangladesh)

SME banking now more popular

Canada Small Business Financing Program (CSBF)Related Sites

Canada Small Business Financing Program

Email your Friends

How Kiva Works

Choose an Entrepreneur, Lend, Get Repaid

What Is Kiva?

We Let You Loan to the Working Poor

Standard Chartered Bank

History

The Chartered Bank

The Standard Bank

HSBC The world's local bank

Who is HSBC?

Business principles and values

Group History

Standard Chartered Bank

Standard Chartered Bank

From Wikipedia, the free encyclopedia

Foreign Banks in Bangladesh

HSBC

From Wikipedia, the free encyclopedia

List of banks in Bangladesh

Contents

How to Get a Business Loan in Five Steps

The Five C's of Credit

The Five C's of Credit

Predicting Expenses

Auto Loan from Standard Chartered

Personal Loan from SCBL

Personal Secured Loan

6 Ways to apply for an ANZ Home Loan

6 Ways to apply for an ANZ Home Loan

Avoid Overstretching Yourself When Applying For Loans By: Joseph Kenny

A start up business loan from a bank

Business Loan overview

Bangladesh Bank in Brief

Bangladesh Bank in Brief

Financial system according to Bangladesh Bank

Small business loans for women

There are many loans are available for women starting small businesses.

Grant Opportunities Available for Women Business Owners

Grant Opportunities Available for Women Business Owners

Business Loans Information

Starting An International Bank

Find the right funding for your business

Everyone dreams of having a car and if you have the funds to do so,

Your Bad Credit Cannot Stop You from Driving Your Own New Car

You Can Get Auto Loans, But Be Realistic About Your Problems With Credit

Why Not Use the Web to Knock Down the Interest Rates on Auto Loans?

Understanding Auto Loans

Tips to Speed up the Approval for Auto Loans

Tips to Drive Away with Low Interest Rate Auto Loans

Tips On Buying A New Car

Tips for First Time Car Buyers to Get Online Auto Loans

Things to Do Before Applying for Auto Loans

The Risks Of Using The Internet To Find Auto Loans

The Reality Behind Zero Interest Auto Loans

The Hidden Truth About Auto Loans

The Best Online Auto Loans Deals

The Best Auto Loans Are Online

Process to apply Small business Loan

How to Apply for a Small Business Loan

Business Bank Loans

What Does it Take to get Good Business Bank Loans?

YOUR CONCERNS ARE THE WORLD BANK'S PRIORITIES

The World Bank is a vital source of financial and technical assistance

Getting a Bank Loan

Getting a Bank Loan

Commercial mortgage

Twelve Tips for Getting Your Bank Loan Approved

Types of loans

Types of loans

[edit] Secured

[edit] Unsecured

[edit] Demand

[edit] Abuses in lending