Revista Internacional de Economia e Ciências de Gestão

Impact of Lending Procedure on Credit Risk Analysis in Selected Private Sector Banks

Abstract

G Lavanya

This paper explains how to minimize firm loan credit risk and aims to outline various techniques for doing so effectively. It involves credit risk management theories. In this study a sample of 265 persons who were availed loans and customers of banks was chosen to collect opinions through a structured questionnaire in Bangalore. The factors under study were default loan, credit risk, insurance charges, interest rates, credit score and documentation. The results were finding by using descriptive and correlation analysis. Results showed that a connection exists between towards credit score, insurance charges, default loan and interest rates while availing a business loan. Email conversations with consumers of the target bank are used to perform qualitative research. Based on primary data of interviews; this study recommended that these private sector banks' management learn how to protect themselves from the looming threats of excessive credit risk, the importance of which cannot be overstated, as evidenced by the findings, which can have a detrimental influence on their profitability. The thesis' findings emphasize some challenges that limit the case bank's credit risk management, as well as recommendations for further research on the case bank.