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Case NF Exercise-X Answers

The document discusses the appraisal of a non-farm loan for Mr. Vikas, highlighting its potential to improve his livelihood through increased business income. It outlines key features of the loan, such as no collateral and low interest rates, and details the appraisal steps taken by Mr. Shubham, including assessing Mr. Vikas' character and capacity. Additionally, it calculates the required working capital limits based on projected turnover.

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6 views1 page

Case NF Exercise-X Answers

The document discusses the appraisal of a non-farm loan for Mr. Vikas, highlighting its potential to improve his livelihood through increased business income. It outlines key features of the loan, such as no collateral and low interest rates, and details the appraisal steps taken by Mr. Shubham, including assessing Mr. Vikas' character and capacity. Additionally, it calculates the required working capital limits based on projected turnover.

Uploaded by

dharamulva
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Name: Roll Number:

RF Exercise: Appraising Non-Farm (NF) Loan of Retail Trade (5%)

1. Give one reason as to why the NF loan may be of help to Mr. Vikas? (1)

- To improve his livelihood through increase in his business and income

2. Identify any two design features of NF loan of UBI useful for borrowers like Vikas? (1)

No Collateral,
-No Margin
-Extended repayment
-Relatilvey low interest

3. Identify any one key step used by Mr. Shubham to appraise Mr. Vikas' loan? (1)

Appraise the character and ability


Aprraise the sales turun over ratio
Appraise the potential of trade and feasibility

4. If you were to sanction loan to Mr. Vikas, identify any 2C of the 3C satisfied? (1)

Character: Mr Vikas had good past items repayment, experience and sincerity
Capacity: His trade has the potential to pay back given the demand; with scope of a
guarnator

5. If the turnover increases to Rs. 12,00,000 under projection II, work out the minimum and
maximum working capital limit required for Mr. Vikas’ business. (2)

Min: 1200000/8 = 150000


Maximum: 25% of sales 0.25x1200000=300000

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