Evaluating a Loan Proposal for ABC Air Conditioning Engineers Using Five Cs / Vandana Gupta.

Format:

Book

Author/Creator:

Gupta, Vandana, author.

Series:

SAGE business cases.

SAGE business cases

Language:

English

Subjects (All):

Loans.

Physical Description:

1 online resource.

Place of Publication:

London : SAGE Publications: SAGE Business Cases Originals, 2025.

Summary:

On May 12, 2022, the chief accounts manager of the credit department of a leading public sector bank in Delhi, India reviews a loan request from Mr. Ravi and Mr. Ganesh, partners at ABC Air-Conditioning Engineers (a fictional firm), a long-time customer of the bank. The accounts manager at the bank forwards the loan request to a subordinate, a management trainee, and instructs him to evaluate the loan proposal using the concept of the character, capacity, collateral, conditions and capital (5Cs of credit), which is commonly applied by banks and lenders in the credit appraisal of a corporate firm. The protagonist evaluates the loan proposal by assessing past financial performance, projected financial performance, and the rating as assigned.Students will be asked to undertake a financial statement analysis for credit evaluation and appraisal. Moreover, the case introduces some of the basic tenets of Micro small and medium enterprises (MSME) ratings and the parameters on which it is based, for students to gain familiarity with the process and the methodology of credit ratings. Students will be asked to read the Basel norms (set up by Bank of International Settlement to protect bank capital) and the guidelines following these norms, to understand the internal ratings assigned by banks to MSMEs and how the ratings assigned, denoting creditworthiness impacts bank lending decisions. At the end, students will evaluate whether to accept or reject the loan, and if accepted, the terms and conditions under which it is accepted.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

9781071978023

1071978020

OCLC:

1483992611