Definition

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

  • Expenditure multiplier
    Expenditure multiplier is the ratio of a change in aggregate output to a change in investment ...
  • Debit card
    Debit card is a plastic card, similar to a credit card, that transfers funds directly ...
  • Resolution
    Resolution in microscopy, the smallest distance by which two obje3cts can be separated ...
  • Stakeholder
    Stakeholder means any individual or group who has an interest in a firm; in addition to ...
  • Autoquote
    Autoquote indicative prices are generated for many of the financial options contracts ...