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Demand finances are those advances which are allowed in lump sum for fixed period and repayable lump sum or gradually in instalments. Demand finance is generally sanctioned for a period of 1,3,5 or 10 years secured against charge on fixed assets of the borrowing company or mortgage of different properties as acceptable for the bank.

CLASSIFICATION OF DF

a. Demand Finance (packing credit)

Scheme introduced by SBP for exporter of carpets, surgical instruments, at zero percent rate of interest. While banks provides at confessional rate of interest.

b. Ordinary Loan

Qurz-e-Hasana scheme loans are allowed to the student, teachers, without any interest or mark up with the recommendation of the MPA or MNA.

c. Loan for Staff

Loans are offered to be the staff of the following four categories

House building loans against mortgage of property

Loans for purchasing vehicles

Loans equivalent to months salary

4. Bridge Finance

Bridge finance is a short term loan granted to meet a customer's immediate need pending arrangement of permanent funds with the bank. It may also be a loan sanctioned to finance the purchase of one asset on the evidence that a contract for the sale of other assets has been concluded and the sale proceeds are assured to be remitted to the lending agency.

5. Small loans

Loans are allowed to contractor's cleaning agents.

6. Finance against the foreign bills (FAFB)

This facilitates is available to both local and foreign bills.

A. FAFB (local) advance against Railway and truck receipt, a company with bills of exchange and invoices, are given under this head.

b. FAFB (foreign) advances against foreign bill covering bills of exchange, bills of lading airway bills of exchange etc.

7. AGRICULTURE LOANS

Loans to the farmers with holding up to 25 acres for meeting their short term, medium and long term agriculture production requirement such as:

Agriculture inputs

Tube wells

Livestock forming

Land improvements

INDUSTRIAL LOANS

Besides the short term loans play a part in working capital medium and long term loans are also given to industrial sector for purchases of machinery and other capital nature goods.

SECURITIES

To secure the above financing products, different kinds of securities are obtained from customers as per requirements/acceptability of the approving authority of the bank, the most common type of which have been discussed below.

i. Hypothecation

In this mode of securities, possession of stock remains with the borrower and sales proceeds of these stocks are deposited with the bank for adjustment of finance availed. It would, therefore be difficult for a bank to sell hypothecated property without going to court and seeking a court attachment. However本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。