Appraisal and Assessment of Credit Facilities
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
One-liners from this chapter
Free sample — 8 of 105 rapid-fire Q&A cards.
1 — C / What It Tests?
C: Creditworthiness; What It Tests: Past repayment record, CIBIL/Experian/Equifax/CRIF reports, banking conduct
2 — C / What It Tests?
C: Character; What It Tests: Integrity, honesty, willingness to repay, social standing, promoter background
3 — C / What It Tests?
C: Capacity; What It Tests: Managerial ability and technical skill to run the business profitably
4 — C / What It Tests?
C: Capital; What It Tests: Stake of the promoter — own contribution, net worth, debt-to-equity gearing
5 — C / What It Tests?
C: Collateral; What It Tests: Security available to fall back on if default occurs (NOT a substitute for cash flow!)
6 — C / What It Tests?
C: Conditions; What It Tests: External — economy, industry cycle, regulatory environment, geographic factors
7 — C / What It Tests?
C: Cash flows; What It Tests: The primary source of repayment — generated from sales / income / operations
Business Enterprise — Purpose / Assessment Approach?
Purpose: Working capital; Assessment Approach: Operating-cycle / Turnover / Tandon / Cash budget
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