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Credit Delivery Part 1 Ques
What is the primary purpose of credit delivery in banking?
Credit delivery refers to the process by which banks channelize funds to borrowers in a structured, timely, and regulated manner to meet their financial needs while managing credit risk.
What is the Tandon Committee's first method for assessing working capital finance?
Bank finances 75% of current assets minus current liabilities.
What is a working capital loan and how does it differ from a term loan?
A working capital loan is a short-term facility used to finance day-to-day operational needs like inventory and receivables, whereas a term loan is a long-term credit facility used for capital expenditure with a defined repayment schedule.
What is the Tandon Committee's second method for working capital assessment?
Bank finances 75% of net current assets (current assets minus current liabilities).
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