Banking

Banking — No Comments
28
Apr 12

What is PLR

Prime lending rate or PLR refers to that interest rate which banks or financial institutions charge from their customers who are at the top end when it comes to creditworthiness. All customers of the bank are not same, while with some customers there is a risk that they might default while with others that risk is minimal. PLR is the lowest interest rate for the loans given by the bank, so customers who are get loans at PLR are considered to be the cream customers of bank because for all others the rate of interest on loans is higher than PLR. For example if PLR rate of SBI is 12 percent for loans than it will charge more than 12 percent from other customers who are at risk of defaulting.

There are many rules and yardsticks in order to qualify for prime lending rates and that is the reason why not many people get loans on PLR rate. In order to understand it better consider a case where you want to join best university of your state for a post graduate course than before applying in that university for a degree you need to have excellent percentage in your graduation, in the same way PLR is given to those companies or individuals have excellent credit history and rating.

Banking — No Comments
11
Feb 12

What is Cross Selling

Cross selling is the term which is often used in the context of banking; under it the employees of the bank cross sell various products apart from normal banking products to their customers. Those products may be insurance, mutual fund, gold coins and so on. In simple words cross selling is a form of marketing where the potential customers and existing customers are same. The biggest advantage of it is that one does not have to search for new customers for products rather one can sell it to its existing customers who are more likely to buy the product as compared to new customers.

It can be used anywhere apart from financial industry, however too much of it can lead to your existing customer getting irritated which in turn will result in company losing that customer also. Hence the company should take care that they offer only those products which are of their interest and can genuinely benefit their existing consumer.

Banking — No Comments
24
Jan 12

Bridge Loan Meaning

Bridge loan as the name suggests is a type of loan which bridges the gap for a borrower and gives him or her more time to arrange for the cash in order to repay the loan or meet his or her current obligations. It can be better understood with the help of an example suppose you are in a college and its 25th of a month, now you need urgently $200 but your pocket money will come only on 1st of next month, than in that case you would borrow $200 from your friend and repay it next month when you receive your pocket money.

Big companies and individuals in real life do the same as in the above example, the only difference being they take it from the banks or financial institutions which charges interest on such loans and the amount is quite large and not as small as in the above example.

 

Banking — No Comments
4
Dec 11

How to Deposit a Cheque

Depositing a cheque can be a problem if one does not have any idea how to deposit a cheque in the bank. It is simple to deposit a cheque in the bank, one has to fill up pay in slip in which details of cheque such as name of the account holder, name of the branch, cheque number, date of the cheque, amount etc are to be filled up. Once you have filled all the details than you can deposit a cheque in the bank.  There are 4 ways of depositing a cheque -

  1. One can personally deposit the cheque on banks counter and obtain receipt on counterfoil of pay in slip.
  2. The cheque can be dropped in the drop box which is available at all branches at the entrance of branch of bank.
  3. Cheque can also be deposited in ATM of the concerned bank where also drop box facility is available.
  4. One can send the cheque through post to concerned bank also.
Banking — No Comments
19
Nov 11

Advantages of Online Banking

Online banking is the result of tremendous development which has taken place in the field of technology in the past few decades. Now almost every bank provides the facility of online banking to its customers. Given below are some of the advantages of online banking –

  1. The first and foremost advantage of it is the ease and convince which it gives to the customers, one can transect from anywhere in the world without visiting the bank premises.
  2. In this age where everyone is in a hurry it has become a necessity rather than a luxury because no one wants to waste his or her time standing in a queue to pay bills or deposit cash into the bank.
  3. It is more cost efficient for both bank as well as customers, because banks have to deploy less staff and customers also get this facility without any extra charge.
  4. One can check his or her account statement anytime which helps the customers in knowing the exact amount of money which he or she has in account and therefore can plan their expenses accordingly.
  5. One can keep watch himself or herself on the account and therefore one can keep a close watch over the transactions which in turn can help in averting any fraud which is not possible in case of normal banking where if you have to see transactions you have to go to bank which can be a cumbersome task.
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