Banking Exam Question - What are the Major Principles of Loan Investment? Explain in Details

Introduction - Loan Investment Principles

The amount provided for the purpose of getting a certain interest and return is called debt. The loan is provided for a fixed period of time. Successful investment policy aims to protect the rights of depositors. Which ensures the profits of the investor. When the investment amount is operated, the retention of Portfolio Management is emphasized as "Do not put all the eggs in one basket." It is popular to say. It also helps to select various appropriate titles and to reduce risk and reduce risk.

1) Principles of Liquidity

• Bank and financial institutions should decide the investment policy in which the deposit amount can be refunded when the depositor wants it.
• And this principle emphasizes the belief that the policy of liquidity for the system should be fixed and the investment policy should be fixed.

2) Principles of Safety

• Provides a special emphasis on the protection and protection of the depositor.
• The investment amount should be available when required.
• This principle emphasizes the investment in producing productivity in the region.
• This principle is based on the belief that debt should not be in debt and debt should be exhausted.
• Poultry interest should be done easily.

3) Principles of Profitability

• The main goal of bank and financial institutions is to earn profits.
• This theory emphasizes the investment of non-profit, production sector.

4) Principles of Diversification

• Investment should be done in different areas in different areas.
• Investment in one area is risky. It can not be minimized.
• The principle of diversification diminishes and reduces the risk.

5) Principles of Corporate Social Responsibility of Social Responsibility and National Interest

• It is believed that poor people know the poor policy etc. and for the rights of backward class, government policy and programs should be set up prioritizing investment policy.
• Such as loans, investments, priority sectors, households, widespread squares, loans, floods, youth employment, target of earthquake etc.