Blog Details

Credit Appraisal

Modalities

Credit Appraisal is a process that lenders such as banks and financial institutions use to evaluate a borrower's credit-worthiness. Its goal is to assess the risk involved in lending money and to determine whether the borrower will repay the loan. Key components of Credit Appraisals

(1) Credit history

(2) Employment and stability

(3) Financial statements

(4) Purpose and amount of the loan

(5) Fixed Obligation to Income Ratio (FOIR)

(6) Security offered

(7) Credit policy of the lender