Question

Describe the procedure adopted by the bank for loan appraisal and disbursal.

Answer 1

STEP I - SUBMISSION OF LOAN APPLICATION

STEP II - INITIAL PROCESSING OF LOAN APPLICATION

 STEP III - APPRAISAL OF THE PROPOSED PROJECT 

STEP IV - ISSUE OF THE LETTER OF SANCTION 

STEP V - ACCEPTANCE OF THE TERMS & CONDITIONS BY BORROWING UNITSTEP

VI - EXECUTION OF LOAN AGREEMENT STEP

STEP VII – DISBURSEMENT OF LOANS

STEP VIII - CREATION OF SECURITY

STEP IX - MONITORING