Loans and Advances

of
Sonali Bank LTD.
A Presentation
by
Md. Refat Islam
ID:171-11-5410
 Objectives of the Study

 To analyze different types of loans and

advances offered by “Sonali Bank Limited.”
 To provide recommendations for improving
loans and advances procedures of the bank.
 Methodology of the Report

Secondary Sources

Lecture materials from Sonali Bank Staff

The Internet is also used as a source of information

Websites and newspaper can also be used as mainstays

Annual Report of Sonali Bank.(Year 2014-2018)

 Categories of Loan
On the Types of Security
a) Secured Loan
A secured loan is a loan backed by collateral-
financial assets you own, like a home or a car-
that can be used as payment to the lender if you
don't pay back the loan
b) Unsecured Loan
An unsecured loan is one that doesn't need
collateral or a security deposit to receive
 Categories of Loan
 On the types of Repayment
I. Demand Loan
II. Time Loan
III. Instalment Loan
 Categories of Loan
a)Demand Loan

A demand loan is a loan that a lender can require to be repaid in full at any time.

This condition is understood by the lender and the borrower from the outset

b)Time Loan

Time loans are commonly used to finance revenue generating assets (such as

inventory) which provide the funds to pay back the loan.

c)Instalment Loan

An instalment loan is a way to borrow money, typically for a single large

purchase such as a car, house or college education.

 Categories of Loan
 On the types of Purpose
a) Home Loan
b) Car Loan
c) Education Loan
d) Commercial Loan
e) Industrial Loan
 Forms of Advances
 Short Term Loans
 Overdraft
 Cash Credit
 Bills Purchased
 Mid Term Loan
 Small Loan
 Transport Loan
 Personal Loan
 Staff Loan
 Findings of the Study

There are some irregularities in sanctioning loans and advances to the

customers. The concerned bankers are involved in such irregularities for their

personal benefits and interest

Loan recovery percentage is poor and Classified loan is increasing.

Lack of proper supervision of loan disbursement.

Influence of political leader to sanction a loan.

Branches have no effective initiatives for relationship banking concepts.

 Recommendations
 Need to monitor the loan recovery system
rigorously.
 Need to assess the loan disbursement procedures
properly t o reduce classified loans.
 Need to focus on collecting the existing classified
loans.
THANK YOU