A Study on Credit Risk Management At Muthoot Finance

Abstract

This multifaceted discipline involves assessing, monitoring, and moderating gambling related with loaning cash or stretching out credit to people, organizations, or different elements. The objective of credit risk the board is to strike a balance between maximizing profitability through lending and safeguarding the institution's financial health At its core, credit risk management begins with the evaluation of potential borrowers or counterparties. This assessment involves examining their creditworthiness, which includes analyzing their financial history, income, assets, and liabilities. Lenders use this information to determine the likelihood of the borrower defaulting on their debt obligations. A thorough credit assessment helps institutions come to informed conclusions about whether to endorse a credit application, set suitable loan costs, and lay out credit limits