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Credit Appraisal

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Grammar
Grammar
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Plagiarism
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Writing
Score
Score
Credit Appraisal
Loan Origination
&

Appraisal Techniques
Mathew Joseph
Senior General Manager
Housing Development Finance Corporation Limited - India confidential AUHF - 2007 AGM & Conference Program, Ghana - September 2007

Why do we appraise?
Is a Selection Tool Quantifies Risk confidential Aids Decision Making Ensure Good Quality business with excellent creditworthiness

What is Credit Appraisal?

ABILITY confidential INCLINATION

OBJECTIVE

SUBJECTIVE

KNOWLEDGE

EXPERIENCE

What are we Appraising?
PERSON: Capacity - The ability to service the loan by financial resources/ income streams. Inclination - Willingness to pay. PROPERTY: To check documents for creation of security. To ensure end use. confidential Basis of Appraisal

Security Based or Repayment Capacity Based confidential Appraisal Process
Involves Risks:
Identification # Information Acquisition # Documentation # Customer Interface Techniques Assessment # Identifying key risks # Identifying Mitigating mechanisms # Integration , Collation of data along with information gathered at the personal interview confidential Appraisal Process

Controls/ Risk Mitigants # Policy related # System related # Level/ Limit related Case Representation # Culmination of the appraisal process confidential Identification
Information Acquisition Stage # Carefully designed Application Form # Standard Document List # Credit Bureau Report # Customer Credit Verification Reports Documentation # Standard Check-lists # Standard Approach to Scrutiny, Perusal Customer Interface Stage # Rapport Building # Probing Techniques confidential Assessment
Involves Extensive Evaluation of the following parameters 1] Current Financial Condition & Paying capacity # Income Source # Income Frequency # Income Consistency # Income Continuity 2] Inclination to repay # Family Background # Savings History # Repayment trend on other liabilities # End use of property # Authenticity of information &
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