CREDIT MONITORING

OCTOBER,2013

CREDIT DELIVERY - IMPORTANT STEPS Documentation : stamping authority to execute the documents should be filled in before executed ROC charge Mortgage registration with sub-registrars office. Third Party Guarantee : personal guarantee of the Directors / Corporate Gtee of the parent company / Undertaking that no commission is paid etc. Charge Creation on securities : Mortgage / Hypothecation / Pledge / Lien / Assignment. Disbursal of Loans : Working capital limit / Term Loan / Re-imbursements to be avoided.

AVAILABLE TOOLS FOR CREDIT MONITORING

Conduct of the Account. Periodic information submitted by the borrower stock / Debtors statement / QIS etc. Stock / Debtors Audit reports Financial statements / Auditors remarks in the annual accounts Periodic visits / inspection

Ensure that assets financed are adequately insured

Interaction with the suppliers / debtors Market reports / cross check with other banks / FIs

Appointing Banks Nominee on the Companys Board

LOAN REVIEW MECHANISM

The Loan Review Mechanism (LRM) plays an important role in following aspects Ensuring end use of funds Ensure the business runs on projected lines, as was planned at the time of appraisal Early detection of warning signal

Taking remedial actions

THANK YOU