Considering Factors / Features / Elements of Good Security.

The  immovable & chattel assets that are received by bank as certainty is called Security of Credit.

Considering Factors / Features / Elements of Good Security of credit are given below with two senses  :

1. Qualities of Personal Security.

2. Non - Personal Security.

1. Qualities of Personal Security :

Bank considers which Qualities of Personal Security are ad follows -

a) Financial solvency :

It means financial capabilities of clients. If the financial capability of personal guarantor is better then loan can be easily got. So, bank also considers the financial condition or solvency of personal guarantor.

b) Ability of credit using :

Bank considers whether the person may take loan is certainly capable to use that possible credit in profitable & developed sectors or not. Bank also gives credits to the person who has highly capabilities of credit using .

c) Social Status :

A personal  security Provider is to be a social recognized & prestigious person. Because, against personal security bank only provides credits to the person who has a great status & recognition.

d) Good Relation :

Bank feels comfort to provides loan against personal security only to such persons who have more excellent & better relation to bank.

e) Honesty :

All persons in this society like an honest individual. The persons who can prove honesty in financial translations are highly acceptable to bank as personal security.

2. Non - Personal Security :

Bank also considers which qualities as non-personal security are given below with described form.

a) Liquidity :

Deposits  are the life blood of a bank. Investors are repayable on interest or after expiry of a certain period. Everyday  investors either store or withdraw money. To fulfill the demand for cash, all banks need to keep certain measure of trade in for spendable dough their custody. This is why, bank receives such wealth as security which have highly Converted power to liquidity.

b) Acceptability :

Bank will consider whether the assets are kept as security is legally acceptable or not.

c) Ownership :

Bank is to think whether the loan receiver has complete ownership on the  immovable & chattel assets that are received by bank as certainty or not.

d) Price of Assets : 

Bank is to be conscious to the value of assets. The value of assets must be higher then the loan amount.

e) Marketability :

It is favourable for bank if the asset will be kept to bank as mortgage is convertible in cash after easily selling. So, bank considers that asset is better which has easy selling power.

f) Liability free:

The mortgage property must be free from liability. So, bank will consider as though the security may not be liable to any people or organization.

g) Price stability :

The price of which security assets is not highly unstable may be considered by bank as perfect or better security.

h) Possession :

Bank should considered who is the possessor of the assets will be kept to bank as security.

I) Transferability :

The  security asset is easily transferable will be better for bank to keep it as security.

j) Determinability of price :

The price of which security assets is easily determined should be considered by bank as better security.

k) Easy Store ability :

Bank likes those products which have easy store ability.

l) maintenance cost :

Bank considers that assets as perfect security of which maintenance costs is less and bank should receive that assets as security or mortgage.

At last it is said that, bank also try to receive mortgage which is more secured & favourable for itself by following a few facts beside the above described facts.