IJMSS Vol.04 Issue-02 (February, 2016) ISSN: 2321-1784 International Journal in Management and Social Science (Impact Factor- 5.276) A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories International Journal in Management and Social Science http://www.ijmr.net.in email id- irjmss@gmail.com Page 94 A STUDY ON CREDIT APPRAISAL SYSTEM IN CANARA BANK WITH SPECIAL REFERENCE TO SME BRANCH. Dr. S. Beulah Mabel, M.I.B., M.B.A., Ph.D, Assistant Professor, Department of Management Studies, Fatima College, Madurai Ms. S. Raja Lakshmi , M.B.A., Department of Management Studies, Fatima College, Madurai ABSTRACT Credit appraisal means investigation/assessment done by the bank before providing any loans and advances/project finance and also checks the commercial, financial &industrial viability of the project proposed its funding pattern and further checks the primary & to study the collateral security cover available for recovery of such funds. Credit appraisal system with respect to banking industry which means how the managers in banks appraise the corporate firms lending process and how the whole process carried forward like a system keeping certain aspects like risk, legal into concern. The main objective of the study is to understand the credit appraisal of canara bank. And to check the commercial, financial & technical viability of the project proposed & its funding pattern. Review of literature mainly focused on the pattern and methods of credit appraisal system. The study was conducted in canara bank SME branch. The research design is analytical in nature. The method of the study is case study method. Tools used in this study are methods followed by this bank during the period of study. Findings are based on the case and suggestions are given and so on. According to this study we have found out that the appraisal system is differ from case to case based on the form of business. INTRODUCTION The root cause of the economic and financial crisis is credit default of companies and individuals which has badly affected many financial institutions which has been resulted in more NPAs. So in the present scenario analyzing one’s credit worthiness has become very important for any financial institution before providing any form of credit facility so that such situation doesn’t arise in near fut ure again. Analysis of the credit worthiness of the borrowers is known as Credit Appraisal. In order to understand the credit appraisal system followed by the banks this project has been conducted. Credit appraisal is an important activity carried out by the credit department of the bank to determine whether to accept or reject the proposal for finance. OBJECTIVES 1, To study the credit appraisal of canara bank 2. To check the commercial, financial & technical viability of the project proposed & its funding pattern. SCOPE OF THE STUDY The research methods have been designed to fit the main objectives. The main scope to this study is obtaining knowledge regarding credit accessibility in Canara Bank. The study covers the factors relating to the appraisal process. There is further scope for analyzing other factors relating to credit risk in the future. REVIEW OF LITERATURE It carries the risk. To determine the eligibility and quantum of the loan. Evaluating the credit worthiness of the applicant. It assures the repayment capacity of the borrower. Vignan Institute Of Technology And Management in the year of 2014, Credit Appraisal: Credit appraisal means investigation/assessment done by the bank before providing any loans . Credit appraisal system is not only looking for financial wealth. Other strong parameters also play an important role in analyzing credit worthiness of the firm/company. In all, the viability of the project from every aspect is analyzed, as well as type of business, industry,