A lender relies on various sources of information to

Solution

As part of due diligence, a bank/lender must use various internal and external sources to assess the credit profile of a borrower. This would include:  

• Internal Sources (Existing to the Bank-Past track, personal credit history of promoters)   
• External Databases (CRILC, CIBIL, ROC, CERSAI , wilful defaulter list, credit fraud registry, etc )   
• Documents submitted by the client (Annual report/Bank statements/GST /ITR )   
• Market Feedback   
• Visit to the borrower ’s residence/office/plant etc. without prior permission and gather information from nearby available sources.