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Appraisal Process and Note

The document outlines the credit appraisal process for potential clients, including steps like scouting for potential clients, analyzing client requirements and information, conducting risk management and compliance reviews, approving and documenting loans, and ongoing monitoring.

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PRANSHU VERMA
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7 views3 pages

Appraisal Process and Note

The document outlines the credit appraisal process for potential clients, including steps like scouting for potential clients, analyzing client requirements and information, conducting risk management and compliance reviews, approving and documenting loans, and ongoing monitoring.

Uploaded by

PRANSHU VERMA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CREDIT APPRAISAL PROCESS

FRAMEWORK
Scouting/ Market Scoping
1 Find Potential Clients

CLIENT REQUIREMENTS AND INFORMATION


2 WHAT THE CLIENT NEEDS?
POTENTIAL CLIENTS
INFORMATION ABOUT
THE COMPANY
Ask the client
Company Itself (Subsidiary or Parent) Websites
Key Personnel Credit Rating
Employees Contacts
Annual Report
Investor Presentation
Press Releases
MCA Website
Promoters

ANALYSIS
3 Company Profile
Proposal
Financial Analysis
Terms and Conditions
Conduct of Borrower
Banking Arrangement of Borrower
Security

4
RISK MANAGEMENT
COMPLIANCE
PRODUCT OFFERING

5 APPROVAL SANCTION DOCUMENTATION

LIMIT SETUP

6 DISBURSEMENT MONITORING AND REVIEW


NOTE

1 NAME
RATING
EXISTING/NEW CLIENT
INTERNAL/EXTERNAL
LEI
DATE OF INCORPORATION

ASSISTANCE DETAILS
2
CONDUCT OF ACCOUNT
WHAT ARE WE OFFERING?
TYPE
3 Default/Reporting

NAME
TENURE -Past Default
SECURITY/COVER -Current Default
PRICING
-Default by -Company
-Directors
-Promoters

4 EXPOSURE
5 CREDIT INCOME OF
THE BANK

Past Projected
Group (If applicable)- Basic Info. and Default

6 COMPANY PROFILE
ABOUT COMPANY
ABOUT BUSINESS
ABOUT PROMOTERS/DIRECTORS
ANY NEW DEVELOPMENTS
NOTE

7 OPERATIONAL PERFORMANCE

FINANCIAL PERFORMANCE

8 -PAST 3-5 YEARS


-PROJECTION 5-10 YEARS-
-CURRENT YEAR Q1/H1/9M
-PARAMETERS (CURRENT AND PROJECTIONS)
REVENUE
OPERATING INCOME
PAT
DEBT SERVICABILITY (DSCR)
WORKING CAPITAL

9
TERMS AND CONDITIONS
-SPECIFIC
-OPERATIONAL

10
COMMUNICATION TO BORROWER
AMOUNT PENALTIES
TENURE VALIDITY
PRICING DOCUMENTS
ADDITIONAL CHARGES

11 12
SECURITY BANKING DETAILS
-ACTUAL SECURITY
-VALUE
-OUR COVER

13
FACILTY
COVENANT
ASSESSMENT

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