2. Documentation and disbursement
The documentation and disbursement refers to the compliance
of documents provided with
the law applicable and the requirements of the Bank's
legal department. Documentation provided must satisfy the Bank's legal
department and afford maximum protection to the Bank.
The documentation is periodically reviewed to keep them
in fine with ever-changing legal systems and practices.
The Legal department is consulted before making any compromises
with the customer. Any amendments are done in consultancy with the legal
department.
Once the credit application satisfies all these conditions, a
thorough analysis is done and if the application complies with the
Bank's conditions, instruction is given to the Credit
administration for disbursement.
3. Credit administration
The credit administration refers to the credit support,
control systems and other practices
necessary for the effective monitoring of credit risks taken by
the Bank. Some of the important points of the credit administration are:
- Control of Credit files.
- Safekeeping of credit and documentation files.
- Follow-ups for expirations of essential documents like CA's and
insurance.
- Control of availments and excesses over approved lines.
- Monitoring of collateral inspections, site visits and customer
calls.
- Monitoring of repayments under term credits.
- Reporting: the portfolio is periodically reviewed to make sure
that the names tiered are still complying with the risk acceptance criteria.
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