The major factors that
interact to loan proposal assessment are mentioned below:
1. Credit-worthiness:
These
will be
treated on
behalf of
applicant’s
credit history, capacity to repay, collateral value as eligibility criteria.
2. Business and Credit history: The eligibility may be judged by business track records and also qualifying for the different
types of credit history like type of
credit facility, credit limit, repayment records, etc.
3. Working capital: The present working capital may be considered that can be thought of as cash at hand and
bank.
4. Collateral: Collateral securities which are assets will be evaluated as secured assets and
pledge or hypothecation of
inventory.
5. Keen money management skills: This includes a solid cash flow, the ability to live, and
skills of keeping accurate and
timely financial records.
6. Earning power: The earnings of borrower to be given out as loan are some of
the
determining factors in granting the loans.
7. Ability to repay: The borrower should have to ability to repay the loans from his
business and
personal income.
8. Experience and character: The borrower should have experience in business to run that should have business skills
and managerial experience.