MANAGEMENT

Detailed explanation-1: -Pre-sanction process involves identification of borrower, the purpose of the loan, quantum of loan, period of loan, source of repayment, security for advance, profitability, pre-sanction unit inspection, appraisal of credit proposal, and sanctioning of the loan/limits.

Detailed explanation-2: -Pre-sanction Credit Process is one of the most important tools to ensure the quality of an asset in future. Selection of a good quality asset depends on many factors, however the integrity and sincerity of the promoters should be placed at the top.

Detailed explanation-3: -Monitoring function in a bank should cover all the three stages, viz., pre-disbursement, during disbursement and post-disbursement phases of an advance account.

Detailed explanation-4: -It can be classified into three main categories, namely, unsecured and secured, conventional, and open-end and closed-end loans.