Question

What are the qualitative measures of credit control?

Answer 1

Qualitative measures of credit control is the manner of channelizing the cash and credit flow in the economy. This method of credit control is a selective method where the credit flow is restricted for some sections and is expanded for the others.

The following methods are adopted by the banks for controlling the credit:

1) Credit rationing

2) publicity

3) moral persvasion

4) regulation of consumer's credit

5) direct action

Apart from these, another credit control methods are also used by the banks. Quantitative credit control methods are also used in credit control.