Abstract:
Main activities of a bank are to give loan and receive deposit. Lending activities are crucial for any bank’s performance and survival. In this report I have worked on the lending activities especially on the working capital financing of the UCBL at Uttara branch.
Working capital is a capital that a company needs to maintain its regular business activities. The bank provides loan to the borrowers and allow them to meet their short-term fund requirements and allow them to run their business smoothly. In the theoretical part I have also shown different sources of working capital financing.
The branch provides working capital loans under corporate and SME banking activities in the form of CC (HYPO), SOD (Secured overdraft) etc. Then, I have shown all the loans that are provided under the corporate and SME loans. I also described the minimum requirements the bank needs to provide loan. Such requirements include minimum income, age, collateral etc. Here I have also mentioned loan size, term of loan and required charges for each loan.
In the next chapter I demonstrated the process for working capital loan approval, required documents and securities used as collateral etc. Before providing loan the branch selects the customer through critical investigation, analyze his financial information and collateral required against the loan and estimate the working capital requirement of the borrower very carefully.
