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Author(s):

NARKIS BEGUM M | VISALAKSHI
Keywords:

Credit Appraisal, Vehicle Finance, EMI, NBFC, NPA, Loan Assessment.
Abstract:
Credit Appraisal Is A Critical Activity Within The Lending Ecosystem Of Non-Banking Financial Companies (NBFCs), Particularly In The Vehicle Loan Segment Where Borrowers Often Exhibit Irregular Income Patterns And Higher Default Probability. Shriram Finance Limited, A Leading NBFC In India, Follows A Comprehensive Appraisal System Involving Document Verification, CIBIL Analysis, Field Investigation, And Income Assessment. This Study Analyses The Credit Appraisal Practices Of The Villianur Branch And Examines How These Practices Influence EMI Structuring, Borrower Selection, And Non-Performing Asset (NPA) Trends From 2020 To 2025. The Study Uses Secondary Data Collected From Branch Records And Customer Case Sheets. Findings Indicate That Systematic Appraisal, Supported By Field Verification And Behavioural Checks, Contributes To Improved Loan Performance And A Consistent Decline In NPAs. The Study Concludes That Integrating Digital Scorecards, Expanding Post-disbursement Monitoring, And Strengthening Risk-based Scoring Tools Will Further Enhance Portfolio Quality.