CREDIT RISK MANAGEMENT PROCESS OF SME FINANCING IN IDLC FINANCE LIMITED

Abstract

Financial Leasing companies deal with tangible assets. The legal owner of the asset is the leasing companies, but the ownership is effectively conveyed to the lessee. SME stands for small and medium sized organization which plays a vital role in the business field now- a-days. Financing in SME is a pleasure for leasing companies and at the same time this is an advantage for entrepreneurs. In this report many things related to Credit Risk Management and SME financing has been described. First of all, the organization IDLC`s introduction has been given and mentioned other products and services. Also mentioned the processing of loan issuance of SME department. After that the offered SME loan products by IDLC has been mentioned as the report belong with SME. How the SME team of IDLC choose proper client and what are the things they investigate before sanctioning a loan are also in this report which I gathered by interviewing two employees of IDLC. Also, some financial analysis has been given to compare IDLC with another top ranking leasing company United Finance. The overall scenario of leasing companies in Bangladesh has been explained in this report. According to the objective the recommendation has been stated.