The document discusses principles of good lending such as safety, purpose of advance, borrower character, security, and liquidity. It also covers analyzing financial statements to evaluate creditworthiness, term lending for fixed assets that is repaid in installments, and appraising term loans based on technical, economic, and financial feasibility. Additionally, it mentions styles of lending like cash credit, overdrafts, and loans as well as modes of creating a charge like lien, pledge, and mortgage.

1. Good lending
Loan and advances by bank

2. Principles of good lending
• Safety
• Purpose of advance
• Borrower character
• Nature of business
• Security
• Location of business
• Liquidity
• Safe margin
• National policy Objectives

3. Analysis of Financial Statements
• An appraisal of credit proposal
• An evaluation on borrower creditworthiness
• An analysis of financial statements

4. Term Lending
• Term loans are given for medium and long
periods, and loans are used for acquiring fixed
assets or for modernisation and expansion of
existing units.
• Term loan are repayable in yearly and half
yearly installments over a period of time.

5. Appraisal of the term loan
• Technical Feasibility
• Economic Feasibility
• Managerial Competence
• Financial Feasibility
Loans may be Secured or un secured loans.

6. Style of Lending
• Cash Credit
• Overdrafts
• Loan System
• Purchase and Discounting of bills

7. Modes of creating Charge
• Lien
• Pledge
• Mortgage