CHAPTER FIVE

Uses of Bank Funds—The Lending Function

CHAPTER STRUCTURE
KEY TAKEA WAYS FROM THE CHAPTER
  • Understand why banks lend

  • Learn how banks lend—Principles of lending

  • Understand the process of making a loan from start to finish

  • Learn the fundamentals of credit appraisal

  • Understand how loans are priced

  • Understand how banks choose profitable customers

SECTION I
BASIC CONCEPTS

Introduction

Assume that you have Rs. 10 lakh ...

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