A thorough credit process begins with a preliminary project report and attached enclosure submission from the loan applicant to the bank.
Once the bank gets the details, it scrutinizes these details. JINXIAN as with any other banking system will go into details clarification, follow up calls, and ask to have an alternate report submitted for the loan etc. As part of the detailed scrutiny, it would be necessary to have an interview with the borrower in order to detail discussions.
The next important step is to conduct inspection of the business, or the premise or the residence against which a loan might be taken. Now in the case of a person loan, it would be necessary to check letters of recommendations, the assets of the participant, their income statements and more. An in-principle sanction is then given by the bank. Now the issue as observed for JINXIAN is seen to have arisen from this point onwards, as the Bank seems to have to make its sanctions even for fraudulent transactions.
The formalities in order to present loan are then conducted by the bank. These are formalities on either side.
When formalities are completed, the in-principle sanction can then go on to the regular formal sanction. In the regular formal sanction of the bank, it so happens that the bank is now in a position to approve the loan. Any final details are then run through before the final sanction clearance.
The sanction is then accepted, and terms and conditions are approved for the bank loan.
The final documents are executed and finally funds are released to the borrower through any option that they select
A post inspection sanction will be conducted by the bank. This is another problem area for JINXIAN, even as some of their loans were non- performing, they continued to sanction multiple loans for the businesses, indicating that their monitoring system was not good.
Finally, a regular follow up is needed till the loan closure happens.