A study on Credit Appraisal methods In Pondicherry

State Co-Operative (PSC) Banks

By I. PREM ASHOK KUMAR

INTERNAL GUIDE EXTERNAL GUIDE

MRS. B.SWARNALATHA MR.SADASIVAM
 Objectives of the study

To study the credit policy of the bank

To credit appraisal process in PSC bank.
To study the pattern for primary & collateral security
over available for recovery of such funds.
 Need for study

Credit Appraisal is the process by which a lender

appraises the creditworthiness of the prospective
borrower. It is a very important step in determining
the eligibility of a loan borrower. Creditworthiness of a
customer lies in assessing if that customer is liable to
repay the loan amount in the stipulated time, or not. It
is determined in terms of the norms and standards set
by the banks.
 Research methodology

Primary data
 Informal interviews with Branch Manager and other
staff members at PSC bank.
 E-circulars in PSC bank

Secondary data
 Books and magazines
 Database in PSC bank
 Internal reports of the banks
 Tools used for analysis

 Financial statement analysis

 Ratio analsis
 Credit rating
 Working capital requirement
 Assessment of credit need
 Questionnaires

 1. Which loan u availed from PSC bank?

a) agricultural loan b) personal loan

c)gold loan d) house loan

 2. What is the duration of your loan ?

a) short term ( upto 18 months) b) medium term (19-48

months

c) long term (more than 48 months

 Continued……

3. Have you repaid the loan ?

a) yes b) no c) can’t say

4. If no, means why (obstacles) ?

a) loss in business b) lack of market
c) lack of demand
 Cont……

5. Do you expect any additional benefit from PSC

bank?
a) yes b) no c) cant say

6. If yes, means what type of benefit ?

a) Subsidies (interest) b) additional loan

c) Subsidies (loan)
Thank you