How credit granting decision is taken? what are the points that are considered before granting credit to individuals by banks or the buyer by seller. In the second page there is the picture of this person form golmal who suffered a lot by not assessing the credibility of the borrower and had lot of problems collecting the same. Both the seller and bank consider various factors to decide the credibility. the data is collected from trusted sources like investopedia and ICICIBANK.

1. ADVANCE
CORPORATE FINANCE

2. Recognize This Person?

3. CREDIT GRANTING DECISION
What is credit granting decision?
A process where credit managers gather information about the
demographics of individuals, their current financial situation and previous
credit history and use this to make predictions about future repayment
behavior.

4. In case of Purchase(Credit purchase)
In case of Individuals expecting loans
Who Needs Credit?

5. Procedure of Credit Purchase
 Receive sales order
 Issue credit application
 Collect and review credit application
 Assign credit level.
 Hold order

6.  Obtain credit insurance
 Verify remaining credit
 Approve sales order
 File credit documentation

7. Loans By Banks
Banks are generally on the conservative end of the lending
spectrum.
Clients deposit funds into banks for safekeeping, to transact
business, and earn a reasonable rate of interest on their funds.
Since Banks are lending client funds, they require reasonable
assurance that borrowing clients can repay their loans.

8. Five C’s of Credit
• Character
• Capacity to Repay
• Collateral
• Capital
• Conditions

9. THANK YOU