Personal loans help you to take care of your immediate requirements Without much of a hassle. The most attractive feature of the personal loan is that you do not have to give any kind of security to avail this loan. No Security, Collateral or Guarantors are required to avail personal loans. Also, no questions regarding the end use of the loan are asked since personal loans do not require any security or hypothecation of assets, the rate of interest charged by them is higher compared to any other secured loans.
ABN AMRO Personal Loans are completely flexible - you can take your loan for purchase of assets and consumer durables, home improvements, tax saving investments, higher education, holidays and travel, emergency medical needs, marriage in family in short, for any declared legal use without pledging any security. You may also avail of the "Balance Transfer Program" to retire any high cost loans that you may have taken, including your credit card dues by simply opting for an ABN AMRO Personal Loan. There are no hidden charges - the Personal Loans come to you with minimum formalities, at attractive interest rates and only a one time nonrefundable processing fee. If you are an existing ABN AMRO customer, you could be eligible for special discounts on the interest rates and simplified application formalities under our "Relationship Rewards Program".
Objective of the Research
To find out exactly what is Credit Analysis is?
How it is to be done?
To find out what is the criteria to be considered by the banks to give loan for various purposes.
How the processing is done on the applicant’s loan request & how it is to be accepter or rejected.
To know and study various credit facilitities provided by the banks.
How the eligibility for granting for granting the loan is calculated.
The main objective of the project was to know the loan proposal system of ABN AMRO BANK. The analysis of any proposal consists of two parts
Internal is extract of internal analysis , consisting of calculation of tenor as per norms ,calculation of eligibility with reference to income shown by an applicant, then if approved, to calculate the equated monthly installments & actual disbursement.
External analysis involves collection of documenry proofs regarding income profile, residence verification, repayment capacity and the end use.
Loan with Income Statements / Salaried Employees
The loan offered to salaried employees is given according to the companies they are working with. ABN AMRO Bank has around 7500 companies listed with them, and they offer loans to the employees working in these companies only. The criteria for listed companies are according to the company profile, past performance, profit earning ability etc. These companies are again been divided into 3 categories i.e. Category A, B & C, according to the above factors.
ABN AMRO Bank gives loan to the officers and management cadres only. They don't give loans to the employees below the officers grade i.e. to the supervisor, the workers etc. The applicant should be earning a Gross annual salary of minimum Rs. 1, 00,000/- per annum. The conditions are as follows.
· Officer or management cadre
· Working in the current employment for at least 1 year or overall 3 years work experience
· Age between 23 to 60 years
· Gross annual salary more than Rs. 1, 00,000/- per annum.
This maximum amount that can be given to an applicant is subject to his net monthly income. The amount calculated by the applicants Net Adjusted salary.
CONCEPT OF “CREDIT”
1. It is the idea that if you build up a reputation for paying bills and debts on time you will be able to borrow money in the future.
2. Credit is important because it enables you to borrow money when you need it. In addition, the better your creditworthiness the more cheaply you will be able to borrow money whether for a car, education, home or some other large expenses.
3. On the other hand, if you are not a good credit risk, you may not be able to borrow when you need to, or you might be able to borrow but only at a high interest rate.
Credit is used primarily in order to obtain loans. Loans can be excellent way to be fund large purchases and business initiative ,but managing debt can be complicated process
· It can take just few months to get into financial trouble and years to get out.
· Although debt is some time useful, there is diff between good debt and bad debt the two most important characteristics are how you borrow the money and what you do it .HOW FRUITFULLY YOU USE IT.
· Even though debt is a part of life, the key to preventing it from becoming destructive is knowing its benefits and risks.
Unfortunately credit fraud is increasingly serious problem having grown almost threefold in frequency in the last five years. Under the most common scham called “Identity Theft “the criminal opens a credit card or other account with another person name. The criminal then purchases goods and services and you get stuck with the bill.
Credit card fraud & credit analysis are not related with each other.
Sometimes the creditor / borrower may qote wrong information about his personal loan details. his capacity to pay off the loan ,the reasons for taking the loan.
Therefore to overcome all this fraudulent activity credit analysis is to be done, to check out the worthiness of the creditor to repay the loan and pay the interest.