A study on credit appraisal system in canara bank with special reference to sme branch.

Credit appraisal means investigation/assessment done by the bank before providing any loans and advances/project finance and also checks the commercial, financial &industrial viability of the project proposed its funding pattern and further checks the primary & to study the collateral security cover available for recovery of such funds. Credit appraisal system with respect to banking industry which means how the managers in banks appraise the corporate firms lending process and how the whole process carried forward like a system keeping certain aspects like risk, legal into concern. The main objective of the study is to understand the credit appraisal of canara bank. And to check the commercial, financial & technical viability of the project proposed & its funding pattern. Review of literature mainly focused on the pattern and methods of credit appraisal system. The study was conducted in canara bank SME branch. The research design is analytical in nature. The method of the study is case study method. Tools used in this study are methods followed by this bank during the period of study. Findings are based on the case and suggestions are given and so on. According to this study we have found out that the appraisal system is differ from case to case based on the form of business.