APPRAISAL OF LOAN REQUESTS
The company takes a global view of the investment proposals submitted by its potential clients, analyze the elements of risk carefully and exercise extreme care in scrutinising the proposals from the commercial, economic, and the financial point of view before committing resources to the projects. The company also makes a detailed character assessment of the loan applicant.
The officers of the company appraise every business proposal brought to it for financing using the Company’s standard appraisal guidelines. There are three steps in appraising a request for financial assistance namely: -
a) Personal data of the applicant.
b) The applicant’s experience and capacity in the proposed business activity.
c) The viability of the business proposal.
The first two steps are to establish the applicants address, reliability, capacity and knowledge of the proposed business. The next step assesses the viability of the proposal. Hududullah Micro Credit Company limited considers any project which can give a return above its bench mark as viable and can be financed while those with return below that are considered unviable. The bench mark provides a basis for profit sharing.
Proposals found to be viable and acceptable are approved and implemented according to the appraisal guidelines.