A Study on Loan Approval and Credit Evaluation Process in Finnable Credit Limited

Abstract

     The loan approval and credit evaluation process plays a significant role in ensuring the financial stability and operational success of Non-Banking Financial Companies (NBFCs). This study examines the loan approval and credit evaluation process followed by Finable Credit Limited, Tirupati, with the objective of understanding the methods used to assess borrowers' creditworthiness and minimize credit risk. The research adopts a descriptive research design using both primary and secondary data. Primary data were collected through a structured questionnaire, while secondary data were obtained from company records, books, journals, and official websites.

      This study focuses on the loan approval and credit evaluation process followed by Finable Credit Limited, . The primary objective of the study is to understand the procedures and criteria used by the company to evaluate the creditworthiness of loan applicants and to examine how these practices contribute to minimizing credit risk. The study also aims to analyse the various stages involved in loan processing, including customer application, document verification, credit score analysis, income assessment, risk evaluation, approval, and loan disbursement. Additionally, it evaluates the role of technology, digital verification systems, and regulatory compliance in improving the efficiency and accuracy of the loan approval process.