Remuneration:

Pricing the loan according to the risk undertaken and the ancillary business income
committed is very important in order to ensure that optimum revenue is generated
from the advances.
Suitability:
Purpose for which credit is extended should be lawful, and conform to the policies
and imperatives of the bank, as outlined in its credit policy guidelines.
The 5c’s that are must to be assessed before considering a customer are explained as
follows:
1. CHARACTER
The loan officer must be convinced that the customer has a well defined purpose for
requesting the bank credit, and has a serious intention to repay.
The integrity of the banker customer loans, customer obey the law, credit rating,
loyalty to the people, their environment, and intended to pay the customer's personal
habits, the ethics code of the customer's business, keep these words looks for the
cause. The loan officer is satisfied with the above conditions, giving due consideration
to the other factors addressed in the following recommended credit.
2. CAPACITY
Customer credit application loan officer to sign a binding agreement on the legal
status of a debt and the right to request that it should be ensured. Customer
characteristic ability to borrow money (Authority) as known. Customer's past
payment record of the banker, the customer's experience with other lenders, credit,
and customer track record in predicting, credit rating, the purpose of the proposed
loan guarantor consignors or check.
3. CAPITAL
Borrower sufficient available cash to pay the debt (capital) is Loan officer loan
applicant's past income, profits and sales records, expected cash flow adequacy,
availability of liquid reserves, payables, receivables and inventory, capital structure
and leverage, cost control, coverage ratio, current business pamper yourself in the
borrower's stock and the P / E ratio, quality management, auditor's report and the
content of the footnotes, the performance of recent accounting changes
4. COLLATERAL
Suicide factor in determining the loan application, the loan officer should ask about
the ownership of assets, assets, age, obsolescence, liquidation value of assets, the
Internship Report on Bank Of Khyber Page 30