PERSONAL FINANCE
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is personal finance in the context of banking?
Personal finance refers to the management of an individual's financial resources including income, expenses, savings, investments, and borrowing to meet personal financial goals.
What is a consumer durable loan and what assets are typically financed under it?
Loan for electronics, appliances, and household durables financed by banks.
Which RBI guidelines govern personal loans offered by banks in India?
Personal loans are governed by RBI's Fair Practices Code, KYC/AML guidelines, and individual bank credit policies under the overall supervisory framework of the Banking Regulation Act, 1949.
What is a moratorium period in the context of personal loans?
Grace period during which no EMI repayment is required by borrower.
What is the difference between a secured and unsecured personal loan?
A secured personal loan is backed by collateral such as property or fixed deposits, while an unsecured personal loan is granted solely on the borrower's creditworthiness without any security.
What is a co-applicant in a personal loan or home loan arrangement?
Additional borrower who shares loan liability and improves loan eligibility.
What does CIBIL score signify in personal finance?
CIBIL score is a three-digit credit score ranging from 300 to 900 that reflects an individual's credit history and repayment behaviour; a score above 750 is generally considered good by banks for loan eligibility.
What is a guarantor and what is his liability in a personal loan?
Third party who undertakes repayment if primary borrower defaults on loan.
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