8/2/2019 Consumer Banking Assignment 2

1/4

Sameer ali l1f07bbam2152

Amna sheikh l1f07bbam2156

Muhammad Imran L1F07BBam0143

MUHAMMAD HARIS CHAUDHRY

8/2/2019 Consumer Banking Assignment 2

2/4

Q: Dig the asset and liability products, offering by any financial institutions to its

customers under the umbrella of consumer services.

These product sare of allied and bank al falah

Asset products

Asset products are another service that commercial banks and other financial institutions

provide. They are called asset products because they represent the primary assets of the

banks, these products normally take the form of personal and business loans, mortgages, auto

loans credit cards, etc. Asset products also have a variety or rates and terms, and the interest

revenue in them is the main way that commercial banks earn profits.

(1). Personal Loans

8/2/2019 Consumer Banking Assignment 2

3/4

Facility of personal loan is provided by many banks now these days in all over the world.

something very urgently and we dont have enough money for that time we can avail facility of

personal loans which is offered by banks on special requirements. Range of these personal

loans also depends on credit ranking of any one or in other words we can say even bank

statement of anyone, this plays very important role in approval of personal loan..

(2). Mortgages Loans

A mortgage is a type of loan which is used to finance the purchase of a property, dwelling or any

other type real estate. These loans are taken against the collateral which is the applicant's

property, for instance, a house.. There are number of options of the type of mortgage you can

get:

(3). Auto Loans

The funds borrowed in order to buy a new car or a used car is known as auto loan. Many banks

and other financial institutions are providing this facility. An auto loan is generally provided by an

individual lender or a financial organization. Nowadays, the auto loan or car loan can also be

applied on the Internet.

(4). Credit Cards

A card issued by a financial company giving the holder an option to borrow funds, usually at

point of sale. Credit cards charge interest and are primarily used for short-term financing.

Interest usually begins one month after a purchase is made and borrowing limits are pre-set

according to the individual's credit rating.

(5). Education Loans

Student loan scheme has been launched by NBP (National Bank Of Pakistan) in collaboration

with other major banks in Pakistan. All of these loans will be interest free which makes this

scheme more attractive..

Liability Products

Liability products are one category of products that commercial banks and other financial

institution provide. So named because they represent liabilities of the bank, these products

8/2/2019 Consumer Banking Assignment 2

4/4

include checking and savings accounts, certificates of deposit and other types of deposit

products. Except for checking accounts, liability products normally earn interest for the

depositor, which varies according to the type and term of the deposit.

(1). Fixed Deposit

Fixed deposit refers to a type of deposit which can be drawn on the expiry of a specific period.This type of deposits is paid at a higher rate of interest. A Fixed Deposit will often be used by

individuals, businesses and financial institutions around the world as a means of storing their

liquid funds for a fixed period of time for future use.

(2).Current deposit

Current deposit refers to a type of deposit which can be drawn at any time and in any amount.

Generally current deposits are not paid any rate of interest. However, a very low rate of interest

is paid if there is a condition that deposit amount will never fall a certain limit.

(3).Savings Bank deposit

A deposit account held at a bank or other financial institution that provides principal security and

a modest interest rate. Depending on the specific type of savings account, the account holder

may not be able to write checks from the account (without incurring extra fees or expenses) and

the account is likely to have a limited number of free transfers/transactions.

(4). Debentures

A type of debt instrument that is not secured by physical asset or collateral. Debentures are

backed only by the general creditworthiness and reputation of the issuer. Both corporations and

governments frequently issue this type of bond in order to secure capital. Like other types of

bonds, debentures are documented in an indenture.

E.g.: notes payable and commercial paper

(5). Demand Deposits

An account from which deposited funds can be withdrawn at any time without any notice to the

depository institution. This account allows you to "demand" your money at any time, unlike a

term deposit, which cannot be accessed for a predetermined period (the loan's term)