20 November 2010
1. What is corpus fund, i mean which type of organization can applicable for this type of fund. 2. what is secured and unsecured loans. define the categories comes under secured and unsecured loan. 3. what is drawings, which types of drawings are called personal.
20 November 2010
The term ‘corpus’ is often confused and misunderstood. The literal meaning of the term ‘corpus’ is the main part/organ of a body. The term ‘corpus’ also denotes the sum and substance of an issue/entity. From a layman’s point of view a corpus fund should be understood as the capital of the organisation ; the funds generated and kept for the existence and sustenance of the organisation. For a charitable organisation corpus fund are of paramount importance. Normally a corpus fund denotes a permanent fund kept for the basic expenditures needed for the administration and survival of the organisation. The corpus fund is generally not allowed to be utilised for the attainment of the purposes, but the interest/dividend accrued on such fund can be utilised as well as accumulated.
20 November 2010
If a loan is ‘secured’, it means it is secured against something you own (an ‘asset’) – and failing to repay the loan could result in the lender taking possession of that asset, and selling it to cover their losses.
An unsecured loan does not require you to secure anything against the loan – the lender relies on your contractual obligation to pay it back.
Because there is no security and the risk they are taking is therefore greater, the amount you can borrow tends to be less, and the repayment period is usually shorter.
The lending criteria also tend to be tighter: lenders generally charge a higher interest rate which is determined mainly by your credit history and level of income.
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