Solution Against Disadvantage of Using Internet

Topics: Bank, Loan, Mortgage loan Pages: 38 (9671 words) Published: November 23, 2011
Executive Summary
Banking sector is one of the constant financial institutions of a country. Due to globalization and technological changes, the give effective real time service to their customers. A country is financially rice when it has modern financial institutions of its own. These institutions play a vital role in the field of financial stability of a country. The internship report titled “The Loan operation systems of National Bank Limited. The main objective is to make a comparison between the products of Loan Operations System offered by National Bank Limited and the products of Loan Operations System offered by other Banks National Bank tries to establish the concept of “Relationship Banking”. It treats clients as its “financial Partner” and always intends to be a friend of rainy days by means of proving financial assistance in those days.The interest rate is 15% for the all products. And National Bank charges 1% service charge and 1% risk fund for all products other than for Car loan, Doctor’s loan, Advance against salary and CNG Conversion loan. The products of National Bank with their financing items under LOS loan are Household Durable Loan, Car Loan, Doctors Loan, Advance against Salary, Education Loan, Travel Loan, Wedding loan, CNG Conversion Loan, Any Purpose Loan, Hospitalization loan. Under LOS program of National Bank Limited a borrower can get maximum of taka 4,000,000 and minimum taka 20,000.The down payment is 10% of the loan for each products. National Bank uses the most common loan amortization method that is “Capital Recovery Method”. Under this method constant monthly payment is calculated on an original loan amount at affixed interest for a given term. Customer can repay the loan before the maturity of the loan. National usually welcomes the early payment of loan and no prepayment penalty is to be charged. National Bank always try to avoid classified loan even at a cost of losing profit and receiving risk just to maintain its credit history and good CAMEL rating. The LOS program is very much popular for its easy accessibility. Customer can also obtain the loan with fewer times and also repay the loan by quicker installments. On the other hand, Bank also favors this sort of loan for its easy recoverability. National Bank is one of the leading Private commercial bank offering Loan Operations System. National Bank offer most innovative products under LOS program to facilitate middle class income group to increase their living standard

Background of the Report:

This internship is a part of the Bachelor of Business Administration (BBA) degree that provides an on the job experience to students. I was placed at National Bank Limited, Dhanmondi Branch as an internee for three months duration. This internship program was my very first on-the-job exposure and provides me with learning experience and knowledge in several areas. The Loan operation systems of National Bank Limited. During the first few week of my internship period, I was able to get accustomed to the working environment of National Bank Limited. As the internship continued, I not only learned about the activities and operation of correspondent Bank, but I also gathered some knowledge about the basic business activities of banking in first one-month of my internship period.

This has been prepared through extensive discussion with bank employees and with the customer. While preparing this report, I had a great opportunity to have an in depth knowledge of all the banking activities practices by the “National Bank Ltd”. It also helps me to acquire a first hand perspective of a leading private banking in Bangladesh.

Generally, by the word “Bank” we can easily understand that the financial institution deals with money. But there are different types of banks such as; Central Banks, Commercial Banks, Saving Banks, Investment Banks, Industrial Banks, Cooperative Banks etc. But we are use the term “Bank” without any prefix, or...
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