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    Credit Appraial

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    Rishi Ojha
    Credit appraisal is the process a bank uses to investigate and assess the commercial, financial, and technical viability of a loan or project before providing funding. It involves analyzing factors like the applicant's age, income, dependents, employment history, repayment capacity, and credit risk based on financial strength, performance indicators, and risk categories. The credit appraisal process includes receiving the loan application and documents, conducting a pre-sanction site visit, and checking defaulters and caution lists to make a decision on whether to approve the loan.

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    Credit Appraial

    Uploaded by

    Rishi Ojha
    8 views6 pages
    Credit appraisal is the process a bank uses to investigate and assess the commercial, financial, and technical viability of a loan or project before providing funding. It involves analyzing factors like the applicant's age, income, dependents, employment history, repayment capacity, and credit risk based on financial strength, performance indicators, and risk categories. The credit appraisal process includes receiving the loan application and documents, conducting a pre-sanction site visit, and checking defaulters and caution lists to make a decision on whether to approve the loan.

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    cibil data and about credit appraisal for retail loan

    Original Title

    credit appraial

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    Credit appraisal is the process a bank uses to investigate and assess the commercial, financial, and technical viability of a loan or project before providing funding. It involves analyzing factors like the applicant's age, income, dependents, employment history, repayment capacity, and credit risk based on financial strength, performance indicators, and risk categories. The credit appraisal process includes receiving the loan application and documents, conducting a pre-sanction site visit, and checking defaulters and caution lists to make a decision on whether to approve the loan.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    8 views6 pages

    Credit Appraial

    Uploaded by

    Rishi Ojha
    Credit appraisal is the process a bank uses to investigate and assess the commercial, financial, and technical viability of a loan or project before providing funding. It involves analyzing factors like the applicant's age, income, dependents, employment history, repayment capacity, and credit risk based on financial strength, performance indicators, and risk categories. The credit appraisal process includes receiving the loan application and documents, conducting a pre-sanction site visit, and checking defaulters and caution lists to make a decision on whether to approve the loan.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    WHAT IS CREDIT APPRAISAL?

    Credit appraisal means an investigation/assessment


    done by the bank prior before providing any loans &
    advances/project finance & also checks the
    commercial, financial & technical viability of the
    project proposed.

    Credit appraisal is the process of appraising the


    credit worthiness of the loan applicant
    WHAT IS CREDIT APPRAISAL? (CONT’D)

    Factors like:-

    » Age
    » Income
    » Number of dependents
    » Nature of employment
    » Continuity of employment
    » Repayment capacity
    CREDIT RISK ASSESSMENT (CRA)
     The CRA models adopted by the Bank take into
    account all possible factors into appraising the
    risks, associated with a loan.
     These have been categorized broadly into
    financial, business, industrial & management
    risks are rated separately.
     These factors duly weighted are aggregated to
    arrive at a credit decision whether loan should be
    given or not
    Financial parameters:
    The assessment of financial risk involves
    appraisal of the financial strength of the borrower
    based on performance & financial indicators.
    which assessed in terms of static ratios, future
    CREDIT APPRAISAL
    PROCESS

    Receipt of application from applicant

    Receipt of documents
    (Balance sheet, KYC papers, Different govt. registration no. and
    Properties documents)

    Pre-sanction visit by bank officers

    Check for RBI defaulters list, willful defaulters list, CIBIL data,
    caution list, etc.
    CONCLUSION
    Credit is the core activity of the banks &
    important source of their earnings which go to pay
    interest to depositors, salaries to employees &
    dividend to shareholders
    Credit & risk go hand in hand
    Bank’s main function is to lend funds/ provide
    finance but it appears that norms are taken as
    guidelines not as a decision making
    A banker’s task is to indentify/assess the risk
    factors/parameters & manage/mitigate them on
    continuous basis
    Thank ou…..

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