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Today the b a s e o f t h e c o u n t r y e c o n o m i c d e v e l o p m e n t a n d t r a d e i s d e p e n d i n g u p o n b a n k i n g a n d c r e d i t structure of economy. A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. The borrower initially receives an amount o f money from the lender, which they are obligated to pay back, but not a l w a ys i n r e g u l a r installments, to the lender. The loan is generally provided at a cost, referred to as interest on the debt. A borrower may be subject to certain restrictions known as loan covenants under the terms of the loan. Acting as a provider of loans is one of the principal tasks for financial institutions. Bank loans and credit are one way to increase the money supply. Now a days loans are easily available and the rate of interest at which they are available at very reasonable rate.

Government too is encouraging people to take loans for certain purpose F o r example, government is encouraging people to take housing loans by giving tax concessions. R u n n i n g a b u s i n e s s i s n e v e r a n e a s y t a s k . O n e i s b o u n d t o f a c e f i n a n c i a l h i c c u p s d u r i n g t h e process. Whether someone is a new generation entrepreneur venturing into a new business or an established businessman planning for a business expansion, whether its money required for an immediate official expansion or it could be the time of recession, when payments don't come on time but the expenditures can't wait, the business loans ease our way through a scary road of financial crisis and open the world of new business heights for you. Financial institutions like banks offer the business loan to bail us out. I have undertaken a study at Retail Loan Factory, Bank of Baroda which deals with preparation of loan proposals.

Project Description The title of the project is Credit Analysis in Retail Loan Factory of Bank of Baroda. This project deals with reviewing the credit worthiness of the borrower before sanctioning of a loan. It deals with analysis of the data provided by the company and following all the formalities as under the norms of the bank and finally making a loan appraisal after analyzing the credit worthiness of the borrower. As I am student of financial management, I taken keen interest in areas concerned with the banking. As banks play a vital role in economic development, credit creation and overall up liftmen of common people. I thought it would fit to select a subject having focus attention of

many banks operating in our country. In my project, I am focusing light on the extent what are the procedure of bank of baroda sanctioning the loan. The project deals with first getting the loan proposals from the clients and making the appraisal note. It gives a practical insight of the procedures followed by the bank in ascertaining the creditworthiness of the borrower. They first collect all the documents required and then start the analyzing procedure by making LAPs entry, verification of the documents and also with the help of CIBIL report we can ascertain the creditability history of the borrower and after feeding the detail in Lap and knowing the CIBIL report ranking is given to borrower and based upon this ranking we decide whether to sanctioned the loan or not. Certain scores are given to the applicant and if the applicant score is above the cut off score he/she is granted loan.