Analytical framework for selection of borrowers


Borrower selection is a very important first step in lending process. In this module participants will learn various methods to select right borrowers by doing qualitative and quantitative analysis of borrower.

Topics covered

1. Qualitative analysis of borrower

  • Judgment of Intention
  •  Borrower Intention (Business credentials, Reputation, Business Importance, Collateral security and Business need)
  • Business model evaluation
  • Assessing borrower’s business model (Economic outlook, Industry factors, Business processes)

2. Quantitative analysis of borrower

  • Document verification checklist & verification of documents
  • Loan application form
  • Audited financials along with auditors and directors report
  • Tax audit report
  • Bank statement
  • VAT return/Service tax return
  • List of debtors and creditors
  • Proposed Business plan
  • Security related documents
  • Personal net worth statement of the borrower

Benefits of the course

After completing this module participants will be able to:

  1. Evaluate borrowers ability to repay the loan
  2. Evaluate business model of borrower
  3. Detect fake sales with unique and simple tricks
  4. Detect intention of borrowers