Bank Checking is only one of the analytical sections based on Principle 5C

Bank Checking is only one of the analytical sections based on Principle 5C. So far many people know about credit analysis is limited to checking BI Checking. Please note that BI Checking is only one part of the analysis based on Principle 5C: character (debtor candidate's character), capacity (potential borrower's ability to return), capital (collateral (collateral), and condition (economic condition) .

1. Character, this principle is seen in terms of personality of the debtor candidate.
2. Capacity, this principle assesses prospective borrowers for their ability to run finances, both as employees and employers.
3. Capital, is related to the condition of assets and wealth owned, especially those owned by prospective borrowers who have status as entrepreneurs. Capital is assessed from the debtor's annual report. From the assessment, the bank can determine whether or not the prospective borrower gets a loan. Or how much credit will be given.
4. Collateral, this principle needs to be considered by prospective borrowers if they can not fulfill their obligation in paying credit installment. If this bad thing eventually happens, in accordance with the existing provisions, the bank will confiscate the assets that have been pledged as collateral. This collateral may be land, buildings, motor vehicles, gold, or deposits. In principle, the value of the asset must be higher than the nominal value of the loan. In the event of a bad credit, the collateral will be auctioned off by the bank to pay the remainder of your credit. Banks generally have a maximum loan standard requirement of 80% of the value of collateral.
5. Condition, this principle is influenced by factors outside the bank or prospective borrowers. That is, the economic conditions of an area or country is very influential. Therefore, this principle is referred to as the principle of prudence in analyzing the potential risk of disruption of prospective borrowers' income due to economic conditions. Economic conditions are usually associated with the work of a prospective debtor. For example, prospective borrowers work in the tourism services sector. Currently for example the tourism sector is quiet enthusiasts. The Bank may conclude that the condition has an impact on the income of the debtor. And risky if banks give credit to prospective borrowers.