个人信贷HND考试.doc

个人信贷1. The principles of lendingPARSERS 1) Personal aspectsCharacterthere is an interview between borrower and lender, the lender will ask some question to confirm the honest and reliability of the borrower.Capitalthe amount of capital or finance provided by the borrower that may suggest the level of the owners commitment to the purpose of the loan.2) Amount and Purpose of loan The lender must ensure that the propose of the loan is acceptable. 3) Repayment method and timingIt should be ensure the borrower use what methods and the time of paying the interest and capital repayment. 4) Safety margin and securityAll lending carries an element of risk because repayment is in the future and no one can be certain of the future. The ultimate risk to be guarded against is the borrowers bankruptcy and, should the advance be for more than the unsupported credit justifies security should be taken. 5) Expediency Specific circumstance must be concrete analysis. 6) Remunerationinterest, Fees and Commissions Lending is the most profitable part of a bank and building societys business. The lender profits from loans through the interest which the majority of the earnings will normally come from the interest earned on the overdraft or loan, and commission which may be possible to generate one-off payments via facility frees. 7) ServicesMost institution target employees in relation to the selling of other non-lending product. These will often be life insurance products that can generate a fee related to the premium. 2. Personal lending products Personal loan (P:78)Person loan is kind of medium-term borrowing.Advantagel Personal loan usually available for sum of 500 to 2500, and it can be arranged for six months to ten years. l Personal loans are always unsecured.l Personal loan can be arranged to cover most purpose such as car purchase. l The interest rate of the personal loan is fixed at the start of loan period. l The interest of loan is higher. 3. 房屋抵押：第一步：评估房子，由第三方来评估（P:45）Firstly, the property should be valued its market value, and the lender will require a reinstatement value of the property. All the process of value the property should be completed by third part. 第二步：确认房子的所有权Secondly check the ownership of the house. It is very important because if the borrower cannot pay the mortgage, the lender will confiscate the property as punishment. At the end of loan, the title to the property will be return to the borrower. 第三步：完成标准抵押（completing the security P:46）Thirdly, a lender will need to instruct solicitors to act in the preparation and completion of the security. 第四步：去管理局注册Finally, go to the related authority register and the bank will bank will become the first right to dispose of the house.4. 计算题1) Current ratio2) Quick ratio3) Net profit ratio4) Gross profit ratio5) Gearing 6) Debtor ratio 5. SecurityThe standard security (P:39)A standard security is the method used to secure any asst that is classed as a heritable security. Advantagel Property price increase is stable, bank are willing to take in the property as security.l The title of the property is clearly, the potential problem is small. Disadvantagel It is hard to sell the property, so the cashability is low. l There are substantial costs involved in taking these securities and these cost have to be passed in to borrower. Stock and shares (P:65)Most shares that are used as security are quoted on the London Stock Exchange. Advantage l The cashability of the stock and share are strong. It is easy to sell the shares and stocks l It is easy to transfer the title of stock and shares. Disadvantage l Value of the stock and shares are fluctuating. l There may be restrictions by private companies on whom shares can sold to, and at what price. 6. Warning signsl There is an unexpectedly increase of the turnover on the account, it means this could suggest overtrading.l There is a decrease of the turnover on the account; it could suggest a downturn in trading. l The direct debts an new standing orders being issued by the borrower, it may suggest additional borrowing facilities are being obtained from other lendersl If the company