• Credit Appraisal

    Banks use the credit appraisal services for themselves before providing loan to a borrower. The Credit Appraisal process is based on careful analysis of various facts and data provided by the borrower to the bank. After the proper credit appraisal process, banks takes a decision to either fund the project or reject the proposal.  This in-depth study is called the pre-sanction credit appraisal which helps the approver to sanction the loan to the borrower.

    Credit appraisal takes care of

    • Borrower’s ability to complete the project and its intention to re-pay the loan after commissioning of the project
    • All the technical details related to the project like project requirement, end product, maintenance, project specifications, quality etc.
    • All the financial details related to the project like Cash Inflow, Cash Outflow, NPV, Break Even period, growth opportunity etc.
    • Financial appraisal to determine whether the company will be able to repay the loan from incremental cash flows or not.
    • Market Appraisal to determine whether the project is viable or not and what are chances of being successful

    Advantages

    • Reduces risk involved in the loans provided for a project
    • Increase confidence among the corporate bankers and improved sales decision
    • Reduces NPA (Non-Performing Assets) and possibility of financial loss
    • Proper assessment is done with different options
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