A Study on Credit Risk Management at Yadgir Urban Credit Co-op Society Ltd, Yadgir.

Abstract

The concept of Credit risk management is the risk outstanding to uncertainty regarding the counterparty’s ability to meet obligations. Because there are many types of counterparty’s form individuals to sovereign government and many different types of obligations credit risk take many forms. The project also tries to find the efficiency of credit risk concept in the co-operative society. The project also tries to analyze that lending has been the prior function of society and exactly apprising a borrower’s credit worthiness has been the only method of lending successfully, the method of analysis required varies in function of types of lending being considered,” it actually helps in measurement of finance in complete detailed manner”. The major objective of this is to control credit risk of the bank when they are issuing loans to required customers and also to giving some suggestions for proper utilization of loan amount repayment of the same. The loan amount has covered different types of areas, where much covered is semi urban and rural centre, it is very necessary to give the guidelines for customers regarding loans. Non-performing assets affects thereby the management adversely. They freeze assets and converts short term claims into long term credit to the customer. However, is that non-performing affects the outsider’s perception of the society. As a result, it would not have a very negative impact on the society.