A Study on Credit Appraisal of Home Loans at Sundaram BNP Paribas Home Finance Ltd, Bengaluru.

Abstract

The Credit Appraisal is an objective of ensuring and maintaining the quality of lending and managing the credit risk. The process of Credit Appraisal is multidimensional and includes - Management appraisal, Financial appraisal, Commercial appraisal, Economic appraisal and Technical appraisal. The study explains appraisal is done to ensure the recovery of the credit along with good supervision, Monitoring and Relationship. Credit appraisal is a process in which a lender appraises the creditworthiness of prospective borrower. This normally involves appraising the Borrowers payment history and establishing the quality and sustainability of his income. The lender satisfies himself of the good intensions of the borrower usually through an interview or personal discussions. The study also speaks related to the NHB guidelines that are supposed to be followed by all the companies which comes under the NBFC’s. The company norms and Criteria are also briefly mentioned for different category of customers. In the support of the study data for the time of 5 years has been collected and calculated to examination. The study briefly explains how the company is performing from 2012 to 2016 through referring company’s annual reports and financial statements. It clearly explains the importance of credit appraising in any company coming under the NBFC.