📝 One-liners · 65 cards
Appraisal and assessment of credit facilities
What is credit appraisal in the context of bank lending?
Credit appraisal is the process by which a bank evaluates the creditworthiness, repayment capacity, and viability of a borrower's proposal before sanctioning a loan or credit facility.
What is the purpose of a techno-economic viability study in project appraisal?
To assess technical feasibility and economic sustainability of a project.
What are the five 'C's of credit appraisal used by banks?
The five C's are Character (integrity of borrower), Capacity (ability to repay), Capital (financial strength), Collateral (security offered), and Conditions (economic environment).
What is Net Present Value (NPV) and how is it used in project appraisal?
NPV is present value of future cash flows minus initial investment cost.
🔒
Unlock 65 revision one-liners
Interactive flashcard deck — flip every card to drill questions and answers, mark the ones you got wrong, and revise smarter for Appraisal and assessment of credit facilities.
🪙
Unlock cost
300 coins
30-day access · re-unlocks free for 30 days