execution of security documents, monitoring recovery, timely renewal, and audit

objective is important and necessary to ensure that the message is issued.

5.6.6 Security Documentation:
After approval of the loan before payment, Credit Administration Department
documents charge credit facility, the credit terms and approved in accordance with the
nature of the type of security from the borrower are required to ensure that . Charging
documents properly designated officer and where customers need and signed by two
witnesses, must be filled. Mortgage registration is effected by the Registrar Supply is
assured before. In the case of a limited company, the charge within 21 days of the
assets of the company with the Securities and Exchange Commission has created. In
case of partnership firm, the firm's borrowing authority as officers in their official
documents and affix their stamp required. Terms and conditions of the loan to get the
approval of the facility which are notified in the letter is issued.
5.6.7 Disbursement:
Disbursement of the credit facility is made through either of the following method i.e.
Running finance/Cash finance/Term finance.
5.6.8 Monitoring and Periodic Evaluation:
The credit administration department is responsible to ensure that the borrowing
customers:
Maintain their accounts regularly with the bank and pay amounts due in time.
Pay the mark up accrued on their accounts within a reasonable period.
Pay installments on due date.
Adjust their liability accounts as per stipulation of the loan agreement.
5.6.9 Recovery and Follow Up of Advances
This credit is the most important activity of the Department of Administration. Fixed-
term contract for default are not only an embarrassing situation as it funds a bank has,
but in most cases the high cost of litigation winding entailing. The recovery process
includes the following steps:
 Verbal and written reminders to the customer for the payment of overdue
amounts.
 To serve of legal notice, in case of ignoring reminders issued.
 Making preparations for taking legal action.
 Filing of recovery suit and follow up of legal process.

Internship Report on Bank Of Khyber Page 40