Learn Something interesting about credit management. All Aspects of Credit Management are covered in brief.

1. CREDIT MANAGEMENT
Presented By: Neeraj Garwal

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

6. REQUIREMENTS FOR LENDING
SOURCES
OF FUNDS
EFFICIENT
SYSTEM &
PROCEDURE
S
CREDIT
POLICY
DELEGATION
OF POWER
TRAINED
MANPOWER

7. 6 C’s OF BRROWER
o CHARACTER
o CAPACITY
o CAPITAL
o COLLATERAL
o CONDITIONS
o CREDIT HISTORY

8. REFERENCES
o https://www.tutorialspoint.com/bank_management/bank_management_credit.h
tm
o https://www.youtube.com/watch?v=f3VgVOgAUoE&list=RDCMUCDkoeHf-
HnQlcHg3l6R1oow&start_radio=1&t=1330s
o https://www.researchgate.net/publication/256059312_Credit_Risk_Management
_in_Indian_Banking_System
o https://www.businessmanagementideas.com/