After sanctioning the loan IDLC officials prepare the documents for the loan signing. Sign after preparing the documents required both the parties sign the document and the loan is provided to the client. Internal control (credit administration) Internal Control & Compliance Committee addresses operational risk and frames and implements policies to encounter such risks. The Committee assesses operational risk across the Company, as a whole, and ensures that an appropriate framework exists to identify, assess and manage operational risk. 3.4 Approval of term loan Term loan is one of the main operations in IDLC Finance Ltd. Basically term loan is given to prospective and profitable customers. Finding out prospective customers by undertaking appropriate marketing and advertisement is one of the potentials of this company. IDLC has to maintain some rules and regulations and some defensive measures to justify a loan application. Certain factors are investigated before approving a loan to a borrower. A different dimension is applicable here. The 7 Cs of credit is an important aspect for perceiving a borrower. 7Cs of' credit Character: IDLC must be comfortable with the borrower's integrity and confidence in his willingness to repay the loan. Certain questions are important here, Has IDLC met the customer? What is his reputation in the community? Is he an upstanding guy or is he a dead beat? IDLC may consider checking references with other business-owners with which the customer does business. Credit History: Credit history of borrower is another important element to consider before approving a loan. IDLC would never loan money to an candidate without first checking his or her credit history. As a potential creditor, IDLC also has the legal right to obtain the borrower's credit paper and examine it in determining whether or not the institution can risk extending the credit. Career History: IDLC asks about the borrower's business. Is it a successful business venture? Has he been in it for a while? Has he had failed business ventures in the past? His past successes or failures may be determinative of his future business success. Capacity: Regarding this aspect of giving loan, IDLC must ask certain questions. In what capacity is the credit going to be used in his business? Is it part of borrowers' inventory? Will the use of goods enable him to generate sufficient funds to repay IDLC and any other creditors? IDLC may consider going over his inventory records with him. The faster he moves his inventory, the more likely his business is a success. Capital: are material here, what is the borrower's financial
Certain questions