- 20 Marks
EOB – APR 2024 – L1 – Q4 – Forms of Lending and Criteria for Lending Decisions
Explain forms of lending (fund-based, structured, non-fund-based); explain seven principal criteria for deciding to lend to a customer.
Question
a. Briefly explain these Forms of Lending:
i. Fund Based Lending
ii. Structured Lending
iii. Non-Fund Based Lending (6 marks)
b. Briefly explain any seven (7) principal criteria by which a bank will decide to lend or not to lend to a prospective customer who approaches the bank for a Credit Facility. (14 marks)
(Total: 20 marks)
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