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.