Abstract
Cooperative Banking System has two broad systems i.e. urban and rural cooperatives, forms an integral part of the India’s Financial System. Urban Cooperative Banks play an important role as financial intermediaries in catering to the credit requirements of both priority sector and weaker section of the communities. As on March 2015 there were 120 UCBs functioning all over Tamil Nadu and the majority is Non-Schedule UCBs. These banks are traditionally centered on communities, localities and work place groups, and they lend to agriculture and non-agriculture purpose and particularly to small farmers, small traders, business man, artisans, factory workers, salaried people and persons of small means. This paper highlights the per-stage and post-stage sanction of loan process of credit in Tamil Nadu Urban Cooperative Banks. Further, the paper makes an assessment of the extent to which Urban Cooperative Banks were following loan portfolio management and identifies the focus area of improvement in near future.
Highlights
The credit system is the most important factor of banking sector
If the credit system is not strong its results would be serious on the society and on the economy of the country
Chart 1: Pre-stage of sanction loan The bank must frame the structure of pre- stage sanction for the borrowers it will help full to the bank whether the borrower is default or not on this credit monitoring basis the loan will issue
Summary
The credit system is the most important factor of banking sector. If the credit system is not strong its results would be serious on the society and on the economy of the country. Application process KYC of personal verification Loan application fit to sanction for the borrower
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