credit appraisal
INTRODUCTION OF THE PROJECT
This project is done to understand, analyze and review the “CREDIT APPRAISAL SYSTEM” at “INDIAN BANK”.
The project is basically done to analyze the appraisal process carried out in the bank and the criteria’s set by the bank for obtaining loan. As part of the project, a proposal has been selected and studied fully whether it satisfies all the criteria’s of the bank and suggested whether the proposal can be selected or not by the bank. It has been done by using appropriate “FINANCIAL TOOLS”.
STATEMENT OF THE PROBLEM
Verifying whether all the criteria’s of the bank has been satisfied by the company for obtaining the loan from bank and identifying the constraints if any.
MEANING OF CREDIT APPRAISAL
Credit appraisal is an investigation/assessment done by the bank prior before providing any loans & advances/project finance and also checks the commercial, financial and technical viability of the project proposed.
It is the process of appraising the credit worthiness of a loan applicant. Factors like age, income, number of dependents, nature of employment, continuity of employment, repayment capacity, previous loans, credit cards, etc. are taken into account while appraising the credit worthiness of a person. Every bank or lending institution has its own panel of officials for this purpose.
CREDITWORTHINESS OF BORROWERS The business of sanctioning unsecured loans & advances is comparatively more risky & needs special care & attention on the part of the banker. The ‘Creditworthiness’ of a person means that he deserves a certain amount of credit, which may safely be granted to him Such creditworthiness is judged by the banker on the basis of his character, Capacity & Capital(3C’s):-
1) CHARACTER:-
In assessing the creditworthiness of a person, the first consideration is
‘Character’ of the person concerned. The word ‘Character’ implies & includes a number o personal characteristics of a person, e.g.
This project is done to understand, analyze and review the “CREDIT APPRAISAL SYSTEM” at “INDIAN BANK”.
The project is basically done to analyze the appraisal process carried out in the bank and the criteria’s set by the bank for obtaining loan. As part of the project, a proposal has been selected and studied fully whether it satisfies all the criteria’s of the bank and suggested whether the proposal can be selected or not by the bank. It has been done by using appropriate “FINANCIAL TOOLS”.
STATEMENT OF THE PROBLEM
Verifying whether all the criteria’s of the bank has been satisfied by the company for obtaining the loan from bank and identifying the constraints if any.
MEANING OF CREDIT APPRAISAL
Credit appraisal is an investigation/assessment done by the bank prior before providing any loans & advances/project finance and also checks the commercial, financial and technical viability of the project proposed.
It is the process of appraising the credit worthiness of a loan applicant. Factors like age, income, number of dependents, nature of employment, continuity of employment, repayment capacity, previous loans, credit cards, etc. are taken into account while appraising the credit worthiness of a person. Every bank or lending institution has its own panel of officials for this purpose.
CREDITWORTHINESS OF BORROWERS The business of sanctioning unsecured loans & advances is comparatively more risky & needs special care & attention on the part of the banker. The ‘Creditworthiness’ of a person means that he deserves a certain amount of credit, which may safely be granted to him Such creditworthiness is judged by the banker on the basis of his character, Capacity & Capital(3C’s):-
1) CHARACTER:-
In assessing the creditworthiness of a person, the first consideration is
‘Character’ of the person concerned. The word ‘Character’ implies & includes a number o personal characteristics of a person, e.g.