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 & its 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 associated in providing any loans & advances or project finance in future and to overcome the loopholes.

Short write-up on the researcher and reason for taking up the project:
The researcher are MBA 2nd year students, studying in N.R.INSTITUTE OF BUSINESS MANAGEMENT(GLS),AHMEDABAD.

The reason for taking up the project is to know and understand the credit appraisal system in banking sector.

Credit appraisal is the major focus of banking indusjenfkjenkj