MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Earn 100

A firm has been sanctioned a cash credit limit of Rs.4 lac. It submits stock statement for stock value of Rs.6 lac. The margin on the security is 25%. What is the amount of drawing power in the account?

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Important Questions on Loan Policy and Loan Documentation

MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 8
Model Bank had granted a cash credit limit of Rs. 12 lac to M/s Banwari Traders against the stocks in trade with 25% margin. What should be value of stocks that the firm should have with them, if they want to avail the sanctioned limit fully. It may be noted that the firm avails regular credit from market against stocks to the extent of Rs. 6 lac:
HARD
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 9
Your branch has sanctioned a cash credit limit of Rs.12 lakh to M/s United Pharmacy. At the closing of July 31, it had stocks worth Rs.9 lakh, sundry creditors of Rs.3 lakh and book debts of Rs 6 lakh. Bank prescribed a margin of 25% on stocks and 30% on book debts. What is the maximum amount that can be withdrawn from the cash credit limit?
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 1
Which among the following are parties to a contract of guarantee under the provisions of Indian Contract Act 1872?
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 2
A term loan of Rs.2 lac is advanced to Mr X by Model Bank which is guaranteed by Mr Z. What is the consideration for the guarantor to give guarantee?
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 3
Liability of the guarantor in a contract of guarantee, as per Section 128, is:
MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 4
Model Bank sanctioned working capital limits of Rs.30 lac to M/s Janardhan & Cu. for which a guarantee was given by Mr Satyanarayana, who gave notice to the bank withdrawing his guarantee when the balance in the account was Rs.27.60 lac. The guarantee bond provides for a notice of withdrawal of 2 months:
MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 5
Your branch has served a notice of recall of a loan, on the borrower as well as the guarantor. On which among the following, the right of set-off can be exercised:
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 6
A bank branch allows an advance to M/s Deena Nath & Co which is secured by guarantee of one Sh. Mahesh Chander. The guarantee extends to a series of transactions. Such guarantee is called: