Analysis of Disbursement of Loans and Advances: A Study on Uttarakhand Gramin Bank.

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Chandra Dev Bhatt, Jai Jayant


Loans and Advances is a separate section or department in a bank which is given a responsibility to sanction short , medium and long term loans after fulfilling required documentation to willing customers whether individuals or organizations.  This section is regarded as a backbone of a bank and contributes a major role in smooth and continuous functioning of the bank. The department is known as a revenue generator for a bank.  The main function of a commercial bank is to accept deposits from its customers  and lend it to needy persons, individuals or organizations after fulfilling the required documentation and other formalities  by borrowers.   The deposits are accepted mainly by opening Saving Bank Accounts, Current Bank Accounts Recurring Deposit Accounts and Term Deposit Accounts at some prescribed rate of interest for prescribed time period.  The major part of these deposits is lend by bankers to needy individuals and organizations at higher rate of interest. The interest rates charged on loans or given on deposits by banks are depending on the repo rate and regulations of Reserve Bank of India. Loans and advances department or section of a bank helps in generating profits for itself and generates self employment in an economy.  It contributes in capital formation and accelerates per capita income of a country. This department is continuously working for formation of strategy in disbursement and recovery of loans and advances for a bank. The present study aims to analyze the development of priority Sector (Agriculture and Industries) in Uttarakhand State on disbursement of Loans and Advances by Uttarakhand Gramin Banks .

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