credit appraisal
CHAPTER 1: INTRODUCTION
This project was undertaken to understand, analyze and review the “CREDIT APPRAISAL SYSTEM” at “HDB Financial Services”.
The project is basically done to analyze the appraisal process and criteria’s set by the institution for obtaining Loan against Property. In addition the project also focused on financial performance of HDBFS.
1.1 Purpose of the Study
The main purpose of study is to know how the loans are granted against property and how the worthiness of the borrower is appraised. The study helps us to know the various procedures, policies, criteria and eligibility required during the sanction of loan. It was also undertaken to analyze the financial performance of HDB Financial Services over the past years.
1.2 Significance of Study
The study was of significance to many financial institutions, organization, Government, and policy makers as it focused on process of credit appraisal while granting loan against property; comparison of HDBFS with its competitor Religare Finvest Ltd.and financial analysis of HDBFS over the past five years.
1.3 Industry Profile
The Credit Appraisal is a holistic exercise which starts from the time a prospective borrower walks into the financial institution and culminates in credit delivery and monitoring with the objective of ensuring and maintaining the quality of lending and managing credit risk.
Credit appraisal means an assessment done by lender before providing any loans and advance to the borrower and also checking the commercial, financial and technical viability of the project proposed. It involves evaluation of customer, measuring of financial condition and ability to pay back the loan.
It is the process of appraising the credit worthiness of the borrower.
The process of Credit Appraisal is multidimensional and includes:
Management Appraisal
Technical Appraisal
Commercial Appraisal
Financial Appraisal
Economic Appraisal
Management Appraisal has received lot of
This project was undertaken to understand, analyze and review the “CREDIT APPRAISAL SYSTEM” at “HDB Financial Services”.
The project is basically done to analyze the appraisal process and criteria’s set by the institution for obtaining Loan against Property. In addition the project also focused on financial performance of HDBFS.
1.1 Purpose of the Study
The main purpose of study is to know how the loans are granted against property and how the worthiness of the borrower is appraised. The study helps us to know the various procedures, policies, criteria and eligibility required during the sanction of loan. It was also undertaken to analyze the financial performance of HDB Financial Services over the past years.
1.2 Significance of Study
The study was of significance to many financial institutions, organization, Government, and policy makers as it focused on process of credit appraisal while granting loan against property; comparison of HDBFS with its competitor Religare Finvest Ltd.and financial analysis of HDBFS over the past five years.
1.3 Industry Profile
The Credit Appraisal is a holistic exercise which starts from the time a prospective borrower walks into the financial institution and culminates in credit delivery and monitoring with the objective of ensuring and maintaining the quality of lending and managing credit risk.
Credit appraisal means an assessment done by lender before providing any loans and advance to the borrower and also checking the commercial, financial and technical viability of the project proposed. It involves evaluation of customer, measuring of financial condition and ability to pay back the loan.
It is the process of appraising the credit worthiness of the borrower.
The process of Credit Appraisal is multidimensional and includes:
Management Appraisal
Technical Appraisal
Commercial Appraisal
Financial Appraisal
Economic Appraisal
Management Appraisal has received lot of