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Lender - s Appraisal Procedure
What is the primary purpose of a lender's appraisal in retail banking?
A lender's appraisal assesses the creditworthiness of a borrower and the viability of a loan proposal to ensure the bank's funds are deployed safely and profitably.
What is the purpose of a credit risk rating model in lender appraisal?
Quantifies borrower risk to determine loan pricing and approval.
What does the term 'credit appraisal' mean in the context of lending?
Credit appraisal is the process by which a bank evaluates a loan application by analysing the borrower's financial position, repayment capacity, collateral, and purpose of the loan before sanctioning credit.
What does 'Know Your Customer' (KYC) compliance mean during loan appraisal?
Verifying borrower identity and address through approved documents.
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