Required documents

Stages of Crediting

• The crediting process begins with filling out an application at the bank. (Get acquainted with the credit application form here),
• The next stage is the collection of as much data as possible about the credit applicant and the previous credits and loans received by him/her,
• The third stage is getting the credit applicant’s consent to view his/her credit history. (Get acquainted with a sample credit report here).
• Next is the verification of the information provided by the applicant by means of interviews, investigation of the documentation presented and personal assets.

Any information provided by the applicant that is incorrect may become basis for the denial of credit.

If the initial data provided to the bank is favorable, the bank will then ask for additional information about the financial status of the applicant based on which the bank can analyze the applicant’s previous financial activities.

• As part of the crediting process it is necessary to perform thorough analysis of the business plan presented by the credit applicant in order to draw at applicable conclusion,
• In case of large loans, the bank may also invite special experts,
• The bank may get acquainted and investigate the organizational, professional abilities of the company executive staff,
• Make corrections with the credit applicant in the business plan,
• The loan officer will then present all the paperwork to a special credit committee (department, section, etc.),
• The credit committee will pay special attention to the factors (highly liquid assets) ensuring the repayment of credit,
• Based on the positive conclusion of the credit committee the credit contract and the contract on the collateral are prepared.

But this is not the end of responsibilities for the loan officer. He needs to constantly monitor the applicant’s activities and whether they are in accordance with the credit program and the contract. The bank is interested in the credit applicant’s financial status from the point of view of future repayment of credit, as well as the utilization of other bank services by the same credit applicant, etc.