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What factors influence when credit should be granted and the length of the credit period offered...

What factors influence when credit should be granted and the length of the credit period offered to customers?

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Answer #1

Loan Crediting

Influencing Factors:

  • compliance to Banking norms and adherence to KYC norms

  • Credit/ Cersai Score (CIBIL score)

  • bank guarantee value check, collateral value check / salary statements in case of employed personal (their genuinity)

  • Yearly tax returns

  • Need for which the loan required

Length of Credit Period :

Let us take an example of Home Loan. The EMI should be such that it is not more than Half the amount of in-hand salary of the borrower

Eg. Say a person's in-hand salary is 60k, of which he has a personal loan of 10k. So remaining in-hand salary is 50k. So max EMI would be of 25k or less

Also the length of credit period depends upon the banking rules and customer satisfaction Eg. Max time for home loan is 30 yrs but a Customer can have the time period set at 15 yrs

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