Credit Appraisal Process

In: Business and Management

Submitted By praveenamurthy
Words 22326
Pages 90
RESEARCH METHODOLOGY

Introduction to Credit Appraisal:
Credit appraisal means an investigation/assessment done by the bank prior before providing any loans & advances/project finance & also checks the commercial, financial & technical viability of the project proposed its funding pattern & further checks the primary & collateral security cover available for recovery of such funds.
Problem Statement: To study the Credit Appraisal System in SME sector, at State Bank of India (SBI), Uttarsanda.
Objectives:
 To study the Credit Appraisal Methods.
 To understand the commercial, financial & technical viability of the project proposed & it’s funding pattern.
 To understand the pattern for primary & collateral security cover available for recovery of such funds. Research Design:
Analytical in nature
Data Collection:
Primary Data:
• Informal interviews with Branch Manager and other staff members at SBI bank.
• E-circulars of SBI

Secondary Data:
• Books and magazines
• Database at SBI
• Internal reports of the banks
• Library research
• Websites

Expected contribution of the study:
This study will help in understanding the credit appraisal system at SBI & to understand how to reduce various risk parameters, which are broadly categorized into financial risk, business risk, industrial risk & management risk associated in providing any loans or advances or project finance.
Beneficiaries:
Researcher:
This report will help researcher in improving knowledge about the credit appraisal system and to have practical exposure of the credit appraisal scenario in SBI.
Management student:
The project will help the management student to know the patterns of credit appraisal in SBI bank.

SBI Bank:
The project will help bank in reducing the credit risk parameters and to improve its efficiencies. It will also help to reduce risk…...

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