As part of a lending program, there are several charges that will be required to be computed. For example a Mortgage facility requires the following charges to be computed on the sanctioned amount.
Looking at these charges we can notice that
The dramatic meltdown of some of the leading financial institutions in the country in the last few years has been because of the steady decline in the quality of their corporate loan portfolio. This has been attributed to some sections of the industry having seen adverse performance which in turn affected their ability to keep up their promises to pay. Following this was the Bank's inability to dispose off the collaterals associated with the loan.