Credit Monitoring – Loans
The banks and the financials institutions after sanctioning the loans and the cash advance to various corporate and firms should ensure that there is proper credit monitoring of the loans and cash advances given to various corporate. The Credit monitoring is absolutely essential to ensure that all the funds are utilized for the sanctioned purposes to ensure that the terms and conditions are complied by the corporate and the firms in the right sprit. To ensure that there is no time lag and cost over run. To detect easily early warning signals and systems of sickness for imitating timely action for recovery or rehabilitation. Proper monitoring of the loans and cash advances sanctioned to the different corporate also ensure that any early warning signal is easily noted and proper remedial action taken by the banks and the financial institutions to ensure that the borrower does not default going forward. The monitoring should be a continuous process and the various checks and balances should be conducted regularly by the banks and the financial institutions to ensure that the borrower does not default in his repayment for whatsoever reasons going forward. It is to be noted that all the banks and the financial institutions have devised proper monitoring systems for proper credit process.
