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LENDER APPRAISAL PROCEDURE
What is lender appraisal in the context of retail lending?
Lender appraisal is the process by which a bank evaluates the creditworthiness, repayment capacity, and risk profile of a borrower before sanctioning a loan.
What is the primary objective of the lender appraisal procedure?
To assess borrower creditworthiness and repayment capacity before sanctioning.
What are the three Cs traditionally assessed during lender appraisal?
The three Cs are Character (willingness to repay), Capacity (ability to repay from income), and Collateral (security offered against the loan).
What is the meaning of 'due diligence' in retail loan appraisal?
Thorough investigation of borrower background, documents, and creditworthiness.
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