Tuesday 6 December 2011

Major forms of loans and advances as per latest BRPD Circular:



a.       Continuous Loan: The loan which is sanctioned without specific repayment schedule but there is a specific expiry date. Example: OD, CC, PC, LIM, LTR etc.
b.      Demand Loan: When loan is sanctioned on the basis of repayment depends upon the demand of the bank than it can be treated as demand loan. Contingent or other liabilities which are converted into forced loan (for which there is no previous formal approval as regular credit) are also to be treated as demand loan. Example: LIM, PAD, FBP, IBP etc.
c.       Term Loan: The loans which have specific expiry dates for repayment and for which repayment is scheduled through specific repayment schedule are treated as fixed term loan. Example: Project Finance, Industrial Finance etc.
d.      Short Term Agricultural Credit and Micro-Credit: Short Term Agricultural Credit and Micro-Credit means the credit which are enlisted as short term credit under the Annual Credit Program announced by Agricultural Credit Department of Bangladesh Bank. Credit in agricultural sector repayable within 12 months is also included in this category. Short Term Micro-Credit means the credit which have loan limit less than Tk. 25000.00 and repayable within 12 months. Micro credit may be even non-farm credit, self employment credit, loom-loan or any forms of credit under the own credit program of the banks.

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