a. b. c. d. e. f. g. h. i. j. k. 1.
DP Note signed on revenue stamp (Annexure-4). Letter of arrangement. (Annexure-5). Letter of disbursement. Letter of partnership (partnership farm) or Board of resolution (limited companies). Letter of pledge. Letter of hypothecation. Letter of lien and ownership / share transfer Letter of lien for packing credit. Letter of lien (in case of advance against FDR) Letter of lien and transfer authority. (in case of advance against P S P, B S Legal documents for mortgage of property (As draft by legal adviser) Copy of sanction letter mentioning details of terms and condition duly acknowledge by the borrower.
CREDIT MONITORING, SUPERVISION & CONTROL 3.15.1 Supervision: Supervision keeps track on proper utilization of fund lent. It includes adequate arrangements by Bank for maintain close contact with the borrower in order to remain well informed about the position and progress of the purpose financed to offer appropriate guideline to the borrower Monitoring: It involves timely collection and analysis of data and information on the progress of the lending activities with the aim of identifying constrains which impede successful implementation of the credit scheme. Follow-up: It includes efforts to ensure that the terms and conditions of the advance at pre-disbursement, disbursement, post disbursement and recovery stages are complied with and money lent is repaid as per schedule of repayment. Recovery of loans largely depends on the effective follow-up. LOAN CLASSIFICATION Loan classification is a process by which the risk or loss potential associated with the loan accounts of a bank on a particular date is identified and quantified to measure accurately the level of reserves to be maintained by the bank to provide for the probable loss on account those risky loan. All types of loans of a bank are fall into following four scales: a) Unclassified: Repayment is regular. b) Substandard: Repayment is stopped or irregular but has reasonable prospect of improvement. c) Doubtful debt: Unlikely to be repaid but special collection efforts may result in partial recovery. d) Bad / Loss: Very little chance of recovery.