Credit Analysis is the process of getting together the financial information about a customer (corporations and individuals) and evaluating it to assess their ability to repay a loan, they have applied for.
To do this, various ratios are calculated and compared with the industry standards to ensure that while the customer gets the loan, the lender is adequately protected.
The amount of credit, tenure, interest rate etc. is calculated based on the financial history of the customer.
The customer may be an individual or a company.
