Retail banking refers to the division of a bank that deals directly with retail customers.

Also
known as consumer banking or personal banking, retail banking is the visible face of banking to
the general public, with bank branches located in abundance in most major cities. Banks that
focus purely on retail clientele are relatively few, and most retail banking is conducted by
separate divisions of banks, large and small. Customer deposits garnered by retail banking
represent an extremely important source of funding for most banks.
Corporate banking, also known as business banking, refers to the aspect of banking that deals
with corporate customers. The term was originally used in the U.S. to distinguish it from
investment banking, after the /Glass-Steagall Act of 1933 separated the two activities. While the
Act was repealed in the 1990s, corporate banking and investment banking services have been
offered for many years under the same umbrella by most banks in the U.S. and elsewhere.
Corporate banking is a key profit center for most banks; however, as the biggest originator of
customer loans, it is also the source of regular write-downs for loans that have soured.
Products and Services Retail Banking
Retail banking encompasses a wide variety of products and services, including:

Checking and savings accounts customers are generally charged a monthly fee for
checking accounts; savings accounts offer slightly higher interest rates than checking
accounts but generally cannot have checks written on them.

Certificates of Deposit and Guaranteed Investment Certificates (in Canada) these are
the most popular investment products with conservative investors, and an important
funding source for banks since the funds in these products are available to them for
defined periods of time.

Mortgages on residential and investment properties because of their size, mortgages

account for both a substantial part of retail banking profits, as well as the biggest chunk
of a banks exposure to its retail client base.

Automobile financing banks offer loans for new and used vehicles, as well as
refinancing for existing car loans.

Credit cards the high interest rates charged on most credit cards makes this a lucrative
source of interest income and fees for banks.

Lines of credit and personal credit products Home equity lines of credit (HELOC) have
diminished significantly in their importance as a profit center for banks after the housing
collapse in the U.S. and subsequent tightening of mortgage lending standards.

Foreign currency and remittance services the increase in /7cross-border banking

transactions by retail clients, and the higher spreads on currencies paid by them, makes
these services a profitable offering for retail banking.

Retail banking clients may also be offered the following services, generally through another
division or affiliate of the bank:

Stock brokerage (discount and full-service)

Insurance

Wealth management

Private banking

The level of personalized retail banking services offered to a client depends on his or her income
level and the extent of the individuals dealings with the bank. While a client of modest means
would generally be served by a teller or customer service representative, a high net worth
individual who has an extensive relationship with the bank would typically have his or her
banking requirements handled by an account manager or private banker.
Although brick-and-mortar branches are still necessary to convey the sense of solidity and
stability that is crucial to banking, the reality is that retail banking is perhaps one area of banking
that has been most impacted by technology, thanks to the proliferation of ATMs and the
popularity of online and telephone banking.
Products and Services Corporate Banking
The corporate banking segment of banks typically serves a diverse range of clients, ranging from
small to mid-sized local businesses with a few millions in revenues to large conglomerates with
billions in sales and offices across the country. Commercial banks offer the following products
and services to corporations and other financial institutions:

Loans and other credit products this is typically the biggest area of business within
corporate banking, and as noted earlier, one of the biggest sources of profit and risk for a
bank.

Treasury and cash management services used by companies for managing their working
capital and currency conversion requirements.

Equipment lending commercial banks structure customized loans and leases for a range
of equipment used by companies in diverse sectors such as manufacturing, transportation
and information technology.

Commercial real estate services offered by banks in this area include real asset analysis,
portfolio evaluation, debt and equity structuring.

Trade finance involves letters of credit, bill collection, and factoring.

Employer services services such as payroll and group retirement plans are typically
offered by specialized affiliates of a bank.

Through their investment banking arms, commercial banks also offer related services to their
corporate clients, such as asset management and securities underwriters.
Importance to the Economy
Retail and commercial banks are of critical importance to the domestic and global economies.
Retail banking brings in the customer deposits that largely enable banks to make loans to their
retail and business customers. Commercial banks, for their part, make the loans that enable
businesses to grow and hire people, contributing to expansion of the economy.
For proof of the importance of banks to the economy, one needs to look no further than the
global credit crisis of 2007-08. The crisis had its roots in the U.S. housing bubble and the
excessive exposure of banks and financial institutions around the world to derivatives and
securities based on U.S. home prices. As iconic American investment banks and institutions
either declared bankruptcy (Lehman Brothers) or were on the verge of it (Bear Stearns, AIG,
Fannie Mae, Freddie Mac), banks grew increasingly reluctant to lend money, either to their
counterparts or to companies. This resulted in a near-total freeze in the global banking and

lending mechanism, causing the most severe recession worldwide since the 1930s Depression.
This near-death experience for the global economy led to renewed regulatory focus on the largest
banks that are deemed too big to fail because of their importance to the worldwide financial
system.
Biggest Retail and Commercial Banks
The amount of domestic deposits held by a bank is a widely-used measure to gauge the size of its
retail banking operation. According to the Federal Deposit Insurance Corporation (FDIC), some
of the biggest U.S. banks by this measure were:
1. Bank of America
2. Wells Fargo
3. JPMorgan Chase
4. Citigroup
5. U.S. Bancorp
Some biggest U.S. commercial banks, based on Federal Reserve data, were:
1. JPMorgan Chase
2. Bank of America
3. Citigroup
4. Wells Fargo
5. U.S. Bancorp
In Canada, the five biggest commercial and retail banks are:
1. Royal Bank of Canada
2. Toronto-Dominion Bank
3. Scotiabank
4. Bank of Montreal
5. Canadian Imperial Bank of Commerce
The Bottom Line
Retail and commercial banks are essential for the smooth functioning of an economy. Most large
banks have specialized divisions that deal in retail banking and corporate banking; both
businesses are among the largest profit centers for most banks.

Consumer Banking
Understanding trends in consumer product markets, and the financial needs of consumers, SMBL
is now designing Consumer Banking services through a dedicated division. SMBL aims to
aggressively grow its existing product portfolio by introducing products in phases. We provide
services for deposits, consumer loans, credit cards, insurance and asset management through a
customer-focused and competitive approach while closely following technological
developments.With a clearly defined market segment and a solid strategic intent supported by a
modern and reliable infrastructure, Summit Bank is ready to reach new heights in Consumer
Banking services

Retail banking is the direct execution of transactions between a bank and its consumers,
rather than with corporations or other banks. Services offered include savings and transactional

accounts, mortgages, personal loans, debit cards, and credit cards. The term is generally used to
distinguish these banking services from investment banking, commercial banking or wholesale
banking. It may also be used to refer to a division of a bank dealing with retail customers and can
also be termed as Personal Banking services.
In the US the term Commercial bank is used for a normal bank to distinguish it from an
investment bank. After the great depression, through the 2%GlassSteagall Act, the U.S.
Congress required that banks only engage in banking activities, whereas investment banks were
limited to capital markets activities. This separation was repealed in the 1990s. Commercial bank
can also refer to a bank or a division of a bank that mostly deals with deposits and loans from
corporations or large businesses, as opposed to individual members of the public (retail banking).

Products:
Typical products offered by a retail bank include:

Transactional accounts

Checking accounts (American english)

Current accounts (British english)

Savings accounts

Debit cards

ATM cards

Credit cards

Traveler's cheques

Mortgages

Home equity loans

Personal loans

Certificates of deposit/Term deposits

In some countries, such as the US, they may also offer more specialised accounts such as:

Sweep accounts

Money market accounts

Individual Retirement Accounts (IRA's)

Transactional account

A transactional account, known as a current account (British English) chequing account or

checking account or share draft account (American English), is a deposit account held at a
bank or other financial institution, for the purpose of securely and quickly providing frequent
access to funds on demand, through a variety of different channels.
Transactional accounts are meant neither for the purpose of earning interest nor for the purpose
of savings, but for convenience of the business or personal client; hence they tend not to bear

interest. Instead, a customer can deposit or withdraw any amount of money any number of times,
subject to availability of funds

History
In Holland in the early 1500s, Amsterdam was a major trading and shipping city. People who had
acquired large accumulations of cash began to deposit their money with "cashiers" in order to
protect their wealth. These cashiers held the money for a fee. Competition drove cashiers to offer
additional services, including paying out money to any person bearing a written order from a
depositor to do so. They kept the note as proof of payment.
This concept spread to other countries including England and its colonies in North America,
where land owners in Boston in 1681 mortgaged their land to cashiers who provided an account
against which they could write checks.
In the eighteenth century in England, preprinted checks, serial numbers, and the very word
"cheque" appeared. By the late eighteenth century, the difficulty of clearing checks (sending
them from one bank to another for collection) gave rise to the development of clearing houses.

Features and access

All transactional accounts offer itemized lists of all financial transactions, either through a bank
statement or a passbook. A transactional account allows the account holder to make or receive
payments by:

ATM cards (withdraw cash at any Automated Teller Machine)

Debit card (cashless direct payment at a store or merchant)

cash money (coins and banknotes)

cheque and money order (paper instruction to pay)

direct debit (pre-authorized debit)

Electronic funds transfers (transfer funds electronically to another account)

giro (funds transfer, direct deposit)

standing order (automatic funds transfer)

SWIFT: International account to account transfer.

Online banking (transfer funds directly to another person via internet banking facility

Saving Account in Bank

Meaning of Saving Account in Bank

Commercial banks (like ICICI, HDFC, etc.), co-operative banks (like Saraswat, Cosmos, etc.),
public sector banks (like State bank of India, Bank of India, etc.) and postal departments accept
deposits by way of opening saving bank account with them.
The 'saving account' is generally opened in bank by salaried persons or by the persons who have
a fixed regular income. This facility is also given to students, senior citizens, pensioners, and so
on.
Saving accounts are opened to encourage the people to save money and collect their savings.
In India, saving account can be opened by depositing 100 (approx. US $2) to 5000 (approx.
US $100). The saving account holder is allowed to withdraw money from the account as and
when required. The interest which is given on saving accounts is sometime attractive, but often
nominal.
At present, the rate of interest ranges between 4% to 6% per annum in India. The interest rates
vary as per the amount of money deposited (lying) in the saving bank account, scheme opted,
and its maturity range. It is also subject to current trend of banking policies in a country.

Features of Saving Account

The main features of saving account in bank are as follows:

The main objective of saving account is to promote savings.

There is no restriction on the number and amount of deposits. However, in India,

mandatory PAN (Permanent Account Number) details are required to be furnished for
doing cash transactions exceeding 50,000.

Withdrawals are allowed subject to certain restrictions.

The money can be withdrawn either by cheque or withdrawal slip of the respective
bank.

The rate of interest payable is very nominal on saving accounts. At present it is

between 4% to 6% p.a in India.

Saving account is of continuing nature. There is no maximum period of holding.

A minimum amount has to be kept on saving account to keep it functioning.

No loan facility is provided against saving account.

Electronic clearing System (ECS) or E-Banking are available to pay electricity bill,
telephone bill and other routine household expenses.

Generally, equated monthly installments (EMI) for housing loan, personal loan, car
loan, etc., are paid (routed) through saving bank account.

Advantages of Saving Account

The advantages of saving account are as follows:

Saving account encourages savings habit among salary earners and others who have
fixed income.

It enables the depositor to earn income by way of saving bank interest.

Saving account helps the depositor to make payment by way of issuing cheques.

It shows income of a salaried and other person earned during the year.

Saving account passbook acts as an identity and residential proof of the account
holder.

It provides a facility such as Electronic fund transfer (EFT) to other people's

accounts.

It helps to do online shopping via facility like internet banking.

It aids to keep records of all online transactions carried on by the account holder.

It provides immediate funds as and when required through ATM.

The bank offers number of services to the saving account holders

Debit Card
A debit card (also known as a bank card or check card) is a plastic payment card that provides
the cardholder electronic access to their bank account(s) at a financial institution. Some cards
may bear a stored value with which a payment is made, while most relay a message to the
cardholder's bank to withdraw funds from a payer's designated bank account. The card, where
accepted, can be used instead of cash when making purchases. In some cases, the primary
account number is assigned exclusively for use on the Internet and there is no physical card.
In many countries, the use of debit cards has become so widespread that their volume has
overtaken or entirely replaced cheques and, in some instances, cash transactions. The
development of debit cards, unlike credit cards and charge cards, has generally been country
specific resulting in a number of different systems around the world, which were often
incompatible. Since the mid-2000s, a number of initiatives have allowed debit cards issued in
one country to be used in other countries and allowed their use for internet and phone purchases.
Unlike credit and charge cards, payments using a debit card are immediately transferred from the
cardholder's designated bank account, instead of them paying the money back at a later date.
Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for
withdrawing cash. Merchants may also offer cashback facilities to customers, where a customer
can withdraw cash along with their purchase.

Types of debit card systems

There are currently three ways that debit card transactions are processed: EFTPOS (also known
as online debit or PIN debit), offline debit (also known as signature debit) and the Electronic
Purse Card System.1%B%[1] One physical card can include the functions of all three types, so
that it can be used in a number of different circumstances.

ATM card

An ATM card, also known as a bank card, MAC (money access card, client card, key card or
cash card, is any payment card issued by a financial institution that enables a customer to access
an automated teller machine (ATM) in order to perform transactions such as deposits, cash
withdrawals, obtaining account information, etc. Most ATM cards today are bank cards such as
debit or credit cards that have been ATM-enabled, although ATM-only cards such as limited-use
ATM cards continue to be issued. Interbank networks allow the use of ATM cards at ATMs of
financial institutions other than those of the institution that issued the cards.
ATM cards can also be used on improvised ATMs such as "mini ATMs", merchants' card
terminals that deliver ATM features without any cash drawer.1%B%%%%2%B%[1][2] These
terminals can also be used as cashless scrip ATMs by cashing the receipts they issue at the
merchant's point of sale.3%B%[3]
The first ATM cards were issued in 1967 and 1969 by, respectively, Barclays in London and
Chemical Bank in Long Island, New York.

Dimensions
The size of ATM cards is 85.60 53.98 mm (3.370 2.125 in) and rounded corners with a radius
of 2.883.48 mm, in accordance with 11ISO/IEC 7810#ID-1, the same size as other payment
cards, such as credit, debit and other cards

Credit Card
A credit card is a payment card issued to users as a system of payment. It allows the cardholder
to pay for goods and services based on the holder's promise to pay for them.1%B%[1] The issuer
of the card creates a revolving account and grants a line of credit to the consumer (or the user)
from which the user can borrow money for payment to a merchant or as a cash advance to the
user.
A credit card is different from a charge card: a charge card requires the balance to be paid in full
each month.2%B%[2] In contrast, credit cards allow the consumers a continuing balance of debt,
subject to interest being charged. A credit card also differs from a cash card, which can be used
like currency by the owner of the card. A credit card differs from a charge card also in that a
credit card typically involves a third-party entity that pays the seller and is reimbursed by the
buyer, whereas a charge card simply defers payment by the buyer until a later date.
The size of most credit cards is 3 38 2 18 in (85.60 53.98 mm),3%B%[3] conforming to the
ISO/IEC 7810 ID-1 standard. Credit cards have a printed4%B%[4] or embossed bank card
number complying with the ISO/IEC 7812 numbering standard. Both of these standards are
maintained and further developed by 11ISO/IEC JTC 1/SC 17/WG 1. Before magnetic stripe
readers came into widespread use, plastic credit cards issued by many department stores were
produced on stock ("Princess" or "CR-50") slightly longer and narrower than 7810

Credit cards in ATMs

Many credit cards can also be used in an ATM to withdraw money against the credit limit
extended to the card, but many card issuers charge interest on cash advances before they do so on
purchases. The interest on cash advances is commonly charged from the date the withdrawal is
made, rather than the monthly billing date. Many card issuers levy a commission for cash
withdrawals, even if the ATM belongs to the same bank as the card issuer. Merchants do not offer

cashback on credit card transactions because they would pay a percentage commission of the
additional cash amount to their bank or merchant services provider, thereby making it
uneconomical. Discover is a notable exception to the above. A customer with a Discover card
may get up to $50 cash back if the merchant allows it. This amount is simply added to the card
holder's cost of the transaction and no extra fees are charged as the transaction is not considered
a cash advance.
Many credit card companies will also, when applying payments to a card, do so, for the matter at
hand, at the end of a billing cycle, and apply those payments to everything before cash advances.
For this reason, many consumers have large cash balances, which have no grace period and incur
interest at a rate that is (usually) higher than the purchase rate, and will carry those balances for
years, even if they pay off their statement balance each month.

Credit cards as funding for entrepreneurs

Credit cards are a risky way for entrepreneurs to acquire capital for their start ups when more
conventional financing is unavailable. It's widely reported that Len Bosack and Sandy Lerner
used personal credit cards[68] to start Cisco Systems. It is rumoured that Larry Page and Sergey
Brin's start up of Google was financed by credit cards to buy the necessary computers and office
equipment, more specifically "a terabyte of hard disks".[69] Similarly, filmmaker Robert
Townsend financed part of Hollywood Shuffle using credit cards.[70] Director Kevin Smith
funded Clerks in part by maxing out several credit cards. Actor Richard Hatch also financed his
production of Battlestar Galactica: The Second Coming partly through his credit cards. Famed
hedge fund manager Bruce Kovner began his career (and, later on, his firm Caxton Associates) in
financial markets by borrowing from his credit card. UK entrepreneur James Caan (as seen on
Dragons' Den) financed his first business using several credit cards.

Traveler's cheque
A traveler's cheque1%5[a] is a preprinted, fixed-amount cheque designed to allow the person
signing it to make an unconditional payment to someone else as a result of having paid the issuer
for that privilege.
They were generally used by people on vacation instead of cash, as many businesses used to
accept traveler's cheques as currency. Merchants and other parties would accept them as if they
were currency because, as long as the original signature (which the buyer is supposed to place on
the check in ink as soon as they receive the cheque) and the signature made at the time the check
is used is the same, the traveler's check issuer will unconditionally guarantee payment of the face
amount even if the check is fraudulently issued, was stolen or lost. In short, a traveler's check can
never 'bounce' unless the issuer goes bankrupt and out of business. If a traveler's cheque were
lost or stolen, it could be replaced by the issuing financial institution.
Their use has been in decline since the 1990s as alternatives, such as credit cards, debit cards,
and automated teller machines became more widely available and were easier and more
convenient for travelers. Travelers cheques are no longer widely accepted and cannot easily be
cashed, even at the banks that issue the cheques.

History
Traveler's cheques were first issued on 1 January 1772 by the 1London Credit Exchange
Company for use in ninety European cities,2%B%[1] and in 1874, Thomas Cook was issuing
'circular notes' that operated in the manner of traveler's cheques.3%B%[2]
American Express was the first company to develop a large-scale traveller's cheque system in
1891,4%B%[3] and is still the largest issuer of traveler's cheques today by volume. American
Express's introduction of traveler's cheques is traditionally attributed to employee Marcellus
Flemming Berry, after company president J.C. Fargo had problems in smaller European cities
obtaining funds with a letter of credit.
Between the 1950s and the 1990s, travelers cheques became one of the main ways that people
took money on vacation for use in foreign countries without the risks associated with carrying
large amounts of cash.
Several brands of travelers cheques have been marketed; the most familiar of those were Thomas
Cook Group, Bank of America and American Express.

Parties to traveler's cheque

Legal terms for the parties to a traveler's cheque are the obligor or issuer, the organization that
produces it; the agent, the bank or other place that sells it; the purchaser, the natural person who
buys it, and the payee, the entity to whom the purchaser writes the cheque for goods and/or
services. For purposes of clearance, the obligor is both maker and drawee

Mortgage loan
A mortgage loan, also referred to as a mortgage, is used by purchasers of real property to raise
money to buy the property to be purchased or by existing property owners to raise funds for any
purpose. The loan is "secured" on the borrower's property. This means that a legal mechanism is
put in place which allows the lender to take possession and sell the secured property
("foreclosure" or "repossession") to pay off the loan in the event that the borrower defaults on the
loan or otherwise fails to abide by its terms. The word mortgage is derived from a "law French"
term used by English lawyers in the Middle Ages meaning "death pledge", and refers to the
pledge ending (dying) when either the obligation is fulfilled or the property is taken through
foreclosure.1%B%[1] Mortgage can also be described as "a borrower giving consideration in the
form of a collateral for a benefit (loan).
Mortgage borrowers can be individuals mortgaging their home or they can be businesses
mortgaging commercial property (for example, their own business premises, residential property
let to tenants or an investment portfolio). The lender will typically be a financial institution, such
as a bank, credit union or building society, depending on the country concerned, and the loan
arrangements can be made either directly or indirectly through intermediaries. Features of
mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying
off the loan, and other characteristics can vary considerably. The lender's rights over the secured
property take priority over the borrower's other creditors which means that if the borrower
becomes bankrupt or insolvent, the other creditors will only be repaid the debts owed to them
from a sale of the secured property if the mortgage lender is repaid in full first.
In many jurisdictions, though not all (Bali, Indonesia being one exception2%B%[2]), it is normal
for home purchases to be funded by a mortgage loan. Few individuals have enough savings or

liquid funds to enable them to purchase property outright. In countries where the demand for
home ownership is highest, strong domestic markets for mortgages have developed.

Personal Loan
MCB Personal Loan Calculator
MCB Personal Loan is a Fast, Affordable and Easy option to meet your immediate financing
needs.

Key Features

Minimum Loan Amount: PKR 50,000

Maximum Loan Amount: Up to PKR 2 Million

Tenure: 1 year to 5 years

No securities or collateral required

Approved Cities: Karachi, Lahore, Rawalpindi, Islamabad, Faisalabad, Hyderabad,

Multan, Gujranwala, and Peshawar.

Eligibility
Clean Credit History Based Criteria:

1) You must have a credit card, a personal loan or an OD facility from any bank with two
years history,

2) You must have a clean/ timely repayment history with your bank and should not have a
default on any loan in the last 5 years,

3) Minimum Net monthly Salary

i. Salaried Customers: PKR 40,000/-

ii. Govt. Officers/ Armed Forces : PKR 30,000

iii. For Self-Employed customers, PKR 100,000/- **

a) If you are a salaried Individual having your salary account with MCB for two years. **

c) If you are maintaining an average balance of PKR 1.5 Million in any bank for a
minimum of 6 months.

No History Criteria:
a) If you are a salaried Individual having your salary account with MCB for two years. **
b) If you have a Monthly Gross Salary of over PKR 500,000**
c) If you are maintaining an average balance of PKR 1.5 Million in any bank for a
minimum of 6 months.

Initial Documents:

Copy of Salary slip/ Proof of income

Copy of Valid CNIC

Rates
These are promotional rates and are valid till 31st March, 2015.
Customers with
Qualifying
Credit History

Customers
with nonQualifying
Credit History

Tenure

1 to 3 years

45 year tenure

1 to 3 years

45 year tenure

Salaried
Govt/Armed Forces

22%

24%

24%

26%

Self Employed

24%

26%

26%

28%

*Subject to terms & conditions

**The approval eligibility criteria have been broadly defined. Bank reserves the right to accept
or reject any proposal without assigning any reason.
For further information, please call MCB Phone Banking at 111-000-622 (MCB) or visit your
nearest MCB branch.

Home equity loan

A home equity loan is a type of loan in which the borrower uses the equity of his or her home as
collateral. Home equity loans are often used to finance major expenses such as home repairs,
medical bills, or college education. A home equity loan creates a lien against the borrower's
house and reduces actual home equity.1%B%[1]
Most home equity loans require good to excellent credit history, reasonable loan-to-value and
combined loan-to-value ratios. Home equity loans come in two types: closed end (traditionally
just called a home-equity loan) and open end (aka a home-equity line of credit). Both are usually
referred to as second mortgages, because they are secured against the value of the property, just
like a traditional mortgage. Home equity loans and lines of credit are usually, but not always, for
a shorter term than first mortgages. Home equity loan can be used as a person's main mortgage in
place of a traditional mortgage. However, one can not purchase a home using a home equity
loan, one can only use a home equity loan to refinance. In the United States, in most cases it is
possible to deduct home equity loan interest on one's personal income taxes.
There is a specific difference between a home equity loan and a home equity line of credit
(HELOC). A HELOC is a line of revolving credit with an adjustable interest rate whereas a home
equity loan is a one time lump-sum loan, often with a fixed interest rate. With a HELOC the
borrower can choose when and how often to borrow against the equity in the property, with the
lender setting an initial limit to the credit line based on criteria similar to those used for closedend loans. Like the closed-end loan, it may be possible to borrow up to an amount equal to the
value of the home, minus any liens. These lines of credit are available up to 30 years, usually at a
variable interest rate. The minimum monthly payment can be as low as only the interest that is
due. Typically, the interest rate is based on the prime rate plus a margin

Fees
A brief list of fees that may apply for home equity loans:

Appraisal fees

Originator fees

Title fees

Stamp duties

Arrangement fees

Closing fees

Early pay-off fee

Surveyor and conveyor or valuation fees may also apply to loans but some may be waived. The
survey or conveyor and valuation costs can often be reduced, provided you find your own
licensed surveyor to inspect the property considered for purchase. The title charges in secondary
mortgages or equity loans are often fees for renewing the title information. Most loans will have
fees of some sort, so make sure you read and ask several questions about the fees that are
charged.

home equity line of credit

A home equity line of credit (often called HELOC and pronounced Hee-lock) is a loan in
which the lender agrees to lend a maximum amount within an agreed period (called a term),
where the collateral is the borrower's equity in his/her house (akin to a second mortgage).
Because a home often is a consumer's most valuable asset, many homeowners use home equity
credit lines only for major items, such as education, home improvements, or medical bills, and
choose not to use them for day-to-day expenses.1%B%[1] HELOC abuse is often cited as one
cause of the subprime mortgage crisis.

Term Deposit
A deposit held at a financial institution that has a fixed term. These are generally short-term with
maturities ranging anywhere from a month to a few years. When a term deposit is purchased, the
lender (the customer) understands that the money can only be withdrawn after the term has
ended or by giving a predetermined number of days notice.
Term deposits are an extremely safe investment and are therefore very appealing to conservative,
low-risk investors. By having the money tied up you'll generally get a higher rate with a term
deposit compared with a demand deposit

Falah Term Deposit Certificatess

It is a profit bearing fixed deposit account designed on the foundation of Mudarabah, where
Bank is the Mudarib (manager of the funds) and you, the customer is the Rabb-ul-Maal
(owner of funds). Bank at its discretion, use or employ your deposited funds in Shariah
compliant modes such as Ijarah, Murabaha and Musharakah.

Bank Alfalah Islamic Banking will share the profit on the basis of predetermined profit sharing
ratio. The rate of return on your deposit will be determined through a Shariah approved
mechanism called weightages, which are announced before the beginning of each calendar
month and shall remain applicable for upcoming month. In the event of loss, all depositors will
share such loss proportionate to their investment.
You can place funds in this product if you are an individual or a business entity.

Features

Invest with a minimum deposit of Rs. 100,000 only

Available for 1 month, 3 months, 6 months, 1 year, 2 Year, 3 Year and 5 Year terms

No maximum deposit limit.

Profit is paid on maturity.

Rollover option available upon written intimation.

Multiple tiers