Credit operational process of United Finance Limited

Abstract

The non‐bank financial institutions (NBFIs) constitute a rapidly growing segment of the financial system in Bangladesh. The NBFIs have been contributing toward increasing both the quality and quantity of financial services and thus mitigating the lapses of existing financial intermediation to meet the growing needs of different types of investment in the country. Today all NBFIs are playing a vital role for the growth of the nation’s economy with the best of their ability. During the world recession period NBFIs in Bangladesh act in a stringent manner so that their financial systems as well as the economy do not collapse. 30 NBFIs are now contributing to the growth of national economy. UF Limited as a leading and pioneer NBFI started their operation in 1989 and still they are dominating the NBFI sector as well as contributing to the prosper of economic development. Their success in this industry has inspired others to invest their capital in a profitable way. The report represents the three months working experience in the United Finance Company Limited (UF). I was assigned to the Head Office at Camellia. This report will present a study of the credit operational process of UF and how does the structure of credit plays an important role in the process. The focal point of the study is to give a clear idea of how UF manages the credit, to analyze the processes being followed in their credit operation. I have used the available data and gathered the knowledge particularly on the credit operation structure of the Credit Administration Department where I worked as an intern. During the short span of its operation, the company has successfully positioned itself in business community, from small businessmen or entrepreneurs to large traders and industrial conglomerates, including the top rated corporate borrowers for forward looking business outlook and innovative financing solutions. After that the products and SWOT analysis of UF is also presented. From SWOT analysis it is found that UF has huge opportunity in the nonbanking sector to shine and can establish a strong pillar in the market.