3. Declaration of borrower containing the detail description of the borrower and his business. 4. Declaration of grantor containing the detail description of' tfic grantor same as borrower 5. Credit reports on the borrower- & also on the grantor. 6. Physical verification report by the authority of AGRANI BANK regarding the goods or raw materials to be hypothecated. 7. Legal opinion of the legal adviser of the bank. 8. Sanction advice III duplicate along with photograph of the borrower, 9. Statement of account. 10. Letter of identification of grantor along with photograph. 11. Copy of' letter of Consent. • • •
Advance Section sends the CLP to the head office, Credit Division for necessary action. Head Office, Credit Division examines the proposal and if finds it viable then sanctions it and sends it to the branch. Credit Division may instruct to submit additional documents. After that the branch issues two copies of "Sanction Advice", one for its own record and the other for the party to keep.
4.8 ADVANCES (LOANS): Loan is a kind of advance. In case of loan the bankers advances a lump sum for a certain period at an agreed rate of interest. The interest is charged for the amount the customer withdraws from his account. The banker considers the following 5 Cs before sanctioning the loan. • Character: The most valuable asset of a person, which is based on the integrity and reliability of the borrower. • Capacity: This indicates the borrower's ability to employ the funds profitably and repay the advance. • Capital: It refers to the borrower’s own funds invested in, the business. • Collateral: It indicates the security offered by the borrower. • Condition: It refers to external a factor that is Business Climate. 4.8.1 Required Information for Loan Sanction: Investigation will have to be made about his business, trade experience, dealings, assets & liabilities etc. from various sources. His account statement with other banks will also be included in this investigation. His financial statements and income tax returns will have to be seen. Personal interview will have to be taken. So, before sanctioning a loan a banker should consider the fo1lowing points.
Loan Application Trade License, partnership deed, Memorandum of Association Market Report Study of Accounts Financial statement Personal 1riterview Other bank's confidential opinion CIB report of Bangladesh Bank