Definition Of

Credit analysis

Credit analysis, by which one calculates the creditworthiness of a business or organization, is one of the most important functions of a bank. 

Credit analysis refers the process of arriving to a definite ‘yes’ or ‘no’ answer to every credit applications by evaluating the applications in terms of the viability of the project for which the credit has been sought, the level of  credit risk or chance of default inherent in the application & finally synchronizing the applicant’s details  with the loan portfolio statement of the bank.

Share it:  Cite

More from this Section

  • Benefit period
    Benefit period is a length of time benefits are paid in a disability income policy or ...
  • Bonded Goods
    Bonded Goods are the goods held in store under customs control after removal from wharf ...
  • Venture capital firm
    Venture capital firm is a financial intermediary that pools the resources of its partners ...
  • Group universal life products (GULP)
    Group universal life products (GULP) refers universal life insurance plans sold to members ...
  • Asymmetric information
    Asymmetric information is a situation which exists in all countries where all the consumers, ...