A Study of Credit Appraisal Process at Bank of Maharashtra

This study examines the credit appraisal process and repayment of Bank loans at Bank of Maharashtra. Specifically the study investigates the appropriateness of the credit appraisal process of Bank, the relationship between loan officers and customers and the effect of loan officer – customer relationship on the credit appraisal process. The study also identifies strategies to help improve the credit appraisal process of the Bank. Finance is required at every stage of business either for meeting day to operations or for starting up a new project. One of the important sources of raising finance is loans from banks. Commercial lending is one of the prime functions of any bank. But how does the bank appraise the creditworthiness of a borrower? What protection can the borrower provide the bank in the event of him/her unable to meet the agreed obligation? What are the criterions to be fulfilled for granting loans? What are the tools used by the banks to appraise the loan proposal? These questions are being answered in this paper. This paper describes the credit appraisal process of personal loan followed in Bank of Maharashtra.