What is a fund based services?

Fund Based Services – It refers to services that are used to acquire assets or funds for a customer. It consists of – – Primary market activities. – Secondary market activities. – Foreign exchange activities.

What are fund based services examples?

Important fund based services include: Mutual funds. Bill discounting. Credit Financing. Housing Finance.

What is the meaning of fund based?

A fund based financial service involves credit offered by banks in the form of loans, overdrafts and other cash transactions. In a non-fund based financial service the bank does not deal with funds or cash transactions. Some examples of this type of service are bonds, letters of guarantee and letters of credit.

What are fund based and fee based services?

— A bank or NBFC offers two types of products: fee-based and fund-based. The proportion between the two impacts the amount of capital needed and income earned. — Loans are fund-based products. To make a loan, a bank or NBFC has to borrow money and ensure that the cost of borrowing is less than the cost of lending.

What is fund based and non fund based?

based facilities are those, at the time of sanction which do not involve such outflow of the bank’s funds. Typical examples of fund based facilities are term loan, cash credit and overdraft and that of non-fund based facilities are letters of credit, bank guarantees, letter of comfort, etc.

What are the services included under fund based facilities?

The fund based finance in banks is in different forms. The facilities like Overdrafts,Cash Credit A/c, Bills Finance, Demand Loans, Term Loans etc, wherein immediate flow of funds available to borrowers, are called funds based facility.

Is housing finance a fund based service?

The financial companies act as bill brokers between the banks and business houses. . It emerged as a fund based financial service in the country with the setting up of National Housing Bank [NBH] by RBI in 1988.

What are fund based and non fund based?

What is the difference between fund based accounting and non fund based accounting?

1. Each fund is treated as a separate fiscal and financial accounting entity. 2. Specific Funds can be used for the purposes for which those funds were obtained; however, the General Fund can be used for meeting general and administrative expenses.

What is fund based lending?

The Fund based lending is direct form of loans on which actual cash is given to the borrower by the bank. Such loan is backed by primary and / or a collateral security.

What is fund based accounting?

The concept of Fund Based Accounting refers to the accounting whereby receipts and incomes relating to a particular fund is credited to that particular fund and payments and expenses are debited to it. Such funds are created for specific purposes such as Building Fund, Library Fund, Sports Fund and Prize Fund etc.

Are fund based financial services provide resources?

It is a fund based financial service provides resources to finance receivables as well facilitates the collection of receivables. It is another method of raising short term finance through account receivable credit offered by commercial banks and factors.

What is the difference between fund based and non fund based financial services?

Some financial services are focused on funds and others are based on non-funds. The Difference between fund based and non fund based financial services are tabulated below. A financial service focused on a fund includes loans that banks provide in the form of loans, overdrafts as well as other money transfers.

What is fund based finance (FBF)?

4.  Fund Based Finance is a specialized method of providing structured working capital and term loans that are secured by account receivables, inventory, machinery, equipment, and real estate.  Fund Based Financial Services (FBFS) are financing method that is driven by the assets of companies.

What are fee based services in finance?

Fee based services – When financial institutions operate in specialised fields to earn income in form of fees, commission, brokerage or dividends it is called a Fee based Service. They include – Underwriting or investment in shares, debentures, bonds, etc. of new issues (Primary Market Activities)

What are the different types of financial services offered by FBR?

Financial Services offered are mainly 2 types – -Fee based merchant banking, broking services, credit rating, portfolio management services, underwriting, etc. -Fund based factoring, leasing, hire purchases, housing finance, bill discounting, Venture Capital, etc. Types of Financial Services.

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