IMPORTANT RETAIL ASSET PRODUCTS
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is a Home Loan in the context of retail banking?
A Home Loan is a secured credit facility extended by banks to individuals for purchase, construction, repair, or renovation of residential property, with the property itself serving as collateral.
What is the maximum repayment period allowed for education loans under IBA Model Loan Scheme?
15 years after the moratorium period ends.
What is the maximum Loan-to-Value (LTV) ratio permitted by RBI for home loans up to Rs. 30 lakh?
RBI permits a maximum LTV ratio of 90% for home loans up to Rs. 30 lakh, meaning the borrower must contribute at least 10% as a down payment.
What is the minimum CIBIL score generally required for approval of a personal loan?
Typically 700 or above is preferred by lenders.
What is a Reverse Mortgage Loan and who is eligible for it?
A Reverse Mortgage Loan allows senior citizens (aged 60 years and above) who own a residential property to avail periodic payments from the bank by mortgaging their house, without having to repay during their lifetime.
What is the maximum loan amount permissible under the Pradhan Mantri Mudra Yojana for the Tarun category?
Up to Rs. 10 lakh under Tarun category.
What is the purpose of a Vehicle Loan in retail banking?
A Vehicle Loan is a secured term loan provided by banks to individuals for the purchase of new or used cars, two-wheelers, or commercial vehicles, with the vehicle hypothecated to the bank as security.
What type of charge is created on movable assets like vehicles in retail auto loans?
Hypothecation charge is created on the vehicle.
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