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Case 1: (10 Marks) Mr. Marwan owns Al Huda Private School which is based in Al Seeb. The school has been running well for the

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Case 1: (10 Marks) Mr. Marwan owns Al Huda Private School which is based in Al Seeb. The school has been running well for the last 3 years and is gaining popularity for its quality of education. However, with the current COVID 19 situation, everything being shut and as the school is unable to get the fee payments from the students, Mr. Marwan is facing challenges with managing his working capital. He has managed to pay the salaries for April but needs funds for salaries and other operating expenses for which he needs OMR 200,000. This will help him manage the expenses until September when he hopes to receive the fees that are due. As you are studying Banking and Insurance, Mr. Marwan has approached you for guidance on the best possible ways of getting the finance for his current needs. He is keen to get the loan from Oman Development Bank as he is aware that this bank is focused on supporting the educational sector because of its importance in the development of the nation. You are required to advise Mr. Marwan on the following points: a) Introduction to Oman Development bank and the services it offers. (80 words minimum/2.5 Marks) b) Details of the Product offered by Oman Development Bank which deals with the loans for the school. (70 words minimum/2 Marks) c) What is the maximum amount the client can get from Oman Development Bank for the school which needs OMR 200,000? What would be the rate of interest? What are the other conditions of the loan? (80 words minimum/2.5 Marks) d) Assume that Oman Development Bank has given the loan for this school for an amount of OMR 75,000. Suppose, unfortunately, the school has not been able to continue its operations and had to permanently close down and consequently is unable to repay the loan amount. How will this bad debt be treated in the books of the bank? (120 words minimum/3 Marks) 4 Page

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