National bank Supervisor: Ms Mehreen [credit officer] Nida Mumtaz MBA Registration No.

003 3rd week

 LOANING; Personal Loaning;Personal loaning is a single individual loaning that where used in order to increase standard of living

Types of personal loaning that where available in NBP ;These are as follow

Advance Salary NBP Rozgar Scheme Agricultural Loan Advance Salary;Advance salary is a service of most of the banks like NBP in which loan where given to those government employees whose salary is being rooted through NBP branch. If salary goes to MCB so no advance salary in NBP .

Requirements for advance salary

Following requirements where necessary Minimum turnover not less than 5 5 years of permanent service Yours end benefits should be enough in order to recover yours loan Valid NIC Pictures posted on NIC Expired ID card not accepted Service card 2 references that are yours colleges Id card of those persons that you use as a reference 5 undated blank cheaques Undertaking Owned demand

 Charge on advance salary ;- Hypothecation charge is created on advance salary .hypothecation is a dual charge on cutomer salary and on customer assets. Procedure of advance salary; - the procedure of advance salary is as follow.

Disbursement authorization certificate

Branch compliance review

Certificate regarding completion of presumption formalities

Certificate from branch manager regarding regularization of account since last six months

Loan application form

Undertaking by the employer

 Request for autorollover

Salary slip

Customer declaration regarding receipt of at least 1 month salary in purpose of borrower account

Demand promissionary note

letter of hypothecation annexure ID

agreement for financing on markup

list of hypothecation duly signed by the customer

undertaking from the borrower

acknowledge from regarding 5 cheques tendered by the borrower

Criteria for assigning limit;Suppose Mr. A has net take income pay = 15000 For sanctioning loan I have to consider Mr. A credit history. For this purpose I will run his ECIB report. According to history in ECIB Mr. A has taken loan from some commercial bank e.g. Car financing for this he has to pay 5000 monthly installment Credit history Limit. O /S amount . Installment .. Detail of maturity .. Whether any default 30 +

,60+ ,90+

if the default is 60+ so loan were not

allowed and if default is 90+ so loan is also not allowed even if the default is in 30 + so loan were also not allowed because that person is defaulter and the bank not allowed loan to defaulter persons. Net take income pay

= 15000 5000 10000

Less car financing installment = Actual net take income pays

As 20 salaries are given in advance so 20 * 10000 = 200000 with 19 % markup rate Installment = 5700 But pre rate installment amount should not be greater than 50 % of actual net take so

200000 is not allowed

May be if it is 100000 or 1700000 so allowed.

Types of charges;There are different types of charges that the bank charges on different types of accounts. These are as follow. Mortgage; - on property mortgage charge were assigned. Plug; - on goods, merchantized, stock etc plug charge were created. Lean; - on accounts lean charge were created. Hypothecation;-on moveable objects hypothecation charge were created.