business.

BOK also like to help in the development of the economy, is very active in advancing
loans to customers. Finance offers the following:
5.4.1 RUNNING FINANCE
The financial needs of the business day on the day of the meeting, which is a kind of treasure.
The amount transferred to the account of the debtor is current and can be withdrawn by check.
Range for this type of finance is Rs. This extension, which is 35,000 more than one year, and
may be renewed by the new approval. Return for a lump sum or in periodic installments to be
paid at the discretion of the customer's.
5.4.2 SECURED RUNNING FINANCE
It is also called overdraft. In such type of finance a customer is authorized to borrow up to an
agreed amount in excess of his bank balance. The BOK usually provides this facility to its
customers. The time period for this type of finance is less than one year. The mark up is paid on
monthly basis and the principal amount is repaid at an agreed date(s).
5.4.3 CASH FINANCE
Cash working capital finance is finance. This is a short-term credit facility. For customers in the
banking sector, the most popular form of funds or cash finance system is known as the traditional
cash credit. In it, solid security against bank lends the money to the borrower. Granted, the total
amount of the loan is not paid in one installment. Have to pay mark-up on the loan amount
borrowed.
a. Hypothecation of stock: When goods are not physically handed over to the bank as security for
loan advanced, but the bank has a lien over the goods through the letter of hypothecation.
b. Pledge: When goods are physically handed over to the bank as security for loan advanced.
Borrowers prefer this type of facility because they have to pay on amounts actually utilized. The
time period for this type of finance is normally one year but also depends on the manufacturing
cycle of the organization.
5.4.4 DOCUMENTS REQUIRED UNDER CASH FINANCE
Against Pledge
Application/agreement with the customer for opening cash finance account.
· IB 6 (revised)
· IB 26
· IB 12 (Appendix)

Internship Report on Bank Of Khyber Page 32