The document discusses credit management, detailing its definition, principles, functions of banks, types of lending, and requirements for lending. It emphasizes the importance of managing credit effectively, highlighting the '6 C's of borrowers' as key factors in evaluation. Additionally, it provides references for further reading on credit risk management and related topics.

1. CREDIT MANAGEMENT
Presented By: Neeraj Garwal

2. CONTENTS
o INTRODUCTION
o PRINCIPLES OF CREDIT MANAGEMENT
o FUNCTION OF BANK
o TYPES OF LENDING
o REQUIREMENT FOR LENDING
o 6 C’s OF BORROWER
o REFERENCES

3. INTRODUCTION
 Credit management is the process of gaining credit. Setting the
term its granted on. Recovering this credit when its due and
ensuring compliance with company credit policy/
 The difference in the rate of interest that a bank charges on the
amount lent and the rate it pays to the depositors is technically
called spread or interest rate spread.
 This spread bank has to use to meet all its overheads and
interest on deposit but also provide for NPA.

4. PRINCIPLES OF CREDIT MANGEMENT
o Liquidity
o Safety
o Diversity
o Stability
o Profitability

5. TYPES OF LENDING
 RETAIL LENDING
 WHOLESALE LENDING
 DIRECTED LENDING
 NORMAL LENDING

6. REQUIREMENTS FOR LENDING
SOURCES
OF FUNDS
EFFICIENT
SYSTEM &
PROCEDURE
S
CREDIT
POLICY
DELEGATION
OF POWER
TRAINED
MANPOWER

7. 6 C’s OF BRROWER
o CHARACTER
o CAPACITY
o CAPITAL
o COLLATERAL
o CONDITIONS
o CREDIT HISTORY

8. REFERENCES
o https://www.tutorialspoint.com/bank_management/bank_management_credit.h
tm
o https://www.youtube.com/watch?v=f3VgVOgAUoE&list=RDCMUCDkoeHf-
HnQlcHg3l6R1oow&start_radio=1&t=1330s
o https://www.researchgate.net/publication/256059312_Credit_Risk_Management
_in_Indian_Banking_System
o https://www.businessmanagementideas.com/