Variables Effecting Banking Loan Practices in India: A Theoretical View

The purpose of this study is to assess literature in order to examine how various variables influencing loan practices of different Indian banks. The study used a theoretical approach and focused on how different authors interpreted and responded to loan practices by different banks in India.  While coming to the bottom of interpretations, the findings of a number of research articles were taken into consideration. The findings of the study showed that, in addition to various obstacles to long-term financing in emerging markets, banking regulations for protection of creditor rights played a crucial role.  Gross domestic profit growth has a significant effect on investment credit and domestic consumption credit.  Bank loan practices found affected by market-based interest rates, inflation rates, bank-level size and long-term funding access. Banks and government-supported institutions' providing loans have been found increased.  Loan practices found affected by state of interest rates and the general economic expansion. Substantial relation between commercial bank lending and bank characteristics, including bank size, liquidity and deposit volume, etc were also noticed.