Workflow Templates: Credit Risk Checklist

Credit Risk Checklist

Review the applicant's credit score and history

Evaluate the applicant's income and employment stability

Verify the applicant's debt-to-income ratio

Check for any existing liens or obligations

Assess the applicant's financial statements and tax returns

Appraise the value of the collateral offered

Verify the ownership and title of the collateral

Assess the marketability and liquidity of the collateral

Check for any existing liens or encumbrances on the collateral

Ensure the collateral meets the institution’s lending criteria

Determine the appropriate loan amount based on credit risk

Establish the loan repayment schedule

Set the interest rate according to the risk profile

Define the loan covenants and conditions

Ensure compliance with regulatory requirements

Consider requiring a co-signer or guarantor

Evaluate the need for credit insurance

Determine the necessity of setting up an escrow account

Implement periodic financial reviews of the borrower

Establish a clear plan for dealing with potential defaults

Prepare the loan approval documentation

Ensure all conditions and covenants are included in the loan agreement

Verify the accuracy and completeness of all submitted documents

Obtain the necessary approvals from relevant authorities

Finalize and execute the loan agreement with all parties