What happens during a loan review process?

During the loan review process, an assessment of the borrower’s repayment capacity and loan terms is conducted to ensure that the borrower is financially capable of repaying the loan as per the stipulated terms. This involves analyzing the borrower’s income, debts, credit history, and other financial factors to determine whether they can meet the loan obligations.

Additionally, the loan review process evaluates the terms of the loan to ensure they align with both the borrower's financial situation and the lending institution's risk management criteria. This thorough assessment is vital to make informed lending decisions and mitigate the lender's risk exposure.

While other aspects such as final loan approval, market value appraisal, and the audit of financial statements may be part of the overall loan process, the specific focus of the loan review process is primarily on understanding the borrower's ability to repay the loan and the suitability of the loan terms for both parties involved.