2. CONTENTS
o INTRODUCTION
o PRINCIPLES OF CREDIT MANAGEMENT
o FUNCTION OF BANK
o TYPES OF LENDING
o REQUIREMENT FOR LENDING
o 6 C’s OF BORROWER
o REFERENCES
3. INTRODUCTION
Credit management is the process of gaining credit. Setting the
term its granted on. Recovering this credit when its due and
ensuring compliance with company credit policy/
The difference in the rate of interest that a bank charges on the
amount lent and the rate it pays to the depositors is technically
called spread or interest rate spread.
This spread bank has to use to meet all its overheads and
interest on deposit but also provide for NPA.
4. PRINCIPLES OF CREDIT MANGEMENT
o Liquidity
o Safety
o Diversity
o Stability
o Profitability
5. TYPES OF LENDING
RETAIL LENDING
WHOLESALE LENDING
DIRECTED LENDING
NORMAL LENDING