Bank Credit Policy

Bank credit policy refers to a set of guidelines and rules that a bank follows when deciding whether to lend money to individuals or businesses. It outlines the criteria for approving loans, such as creditworthiness, repayment capacity, and risk management. This policy helps the bank ensure that it extends credit responsibly, minimizing potential losses while supporting customers' financial needs. Essentially, it balances the bank’s desire to lend with the need to maintain financial stability and sound risk assessment.