The Loan and Advances department function is an important component of any company’s business operations. Using creative methods when necessary to structure transactions so that business can be approved, the credit department can make a significant contribution to profit maximization. The key is to find the best way to minimize the risk.
Loan and Advances means belief or trust. “The quality of being credible or trustworthy” Another words we can define credit as “trust in one’s integrity in money matters and one’s ability to meet payment when due”.
Samarth Bank as part of strategy has started the retail microfinance lending through Joint liability group ( JLG ) / self help group ( SHG ) / Center model group lending / Individual loan this gives us apportunity to the bank to reach the unreached areas and customers . It will help bank to cover excluded community of society and built a brand of bank . There is pool of customers who are engaged in economic activities like Dairy , goat raring , vegetable cultivation , vegetable vendours , kirana shop , petty shops , weekly market , plumber , carpenters , tailors , repair shop etc