Page 87 - MUDRA ANUBHAV

The respondents from lending institutions were
asked to report that, in their opinion what was the
general financial condition of the borrower. This

study is usually done by the lenders as a part of
Credit Risk Assessment, before sanctioning of the
financial assistance. The chances of default change
as per the financial condition of the borrower. Also,

this helps to understand whether the borrower is
trying to revive the business or start a new one.

According to the respondents, the borrowers did
not belong to any specific category, either sound

or weak. The borrower demography is mixed, and
majority of the respondents reported it to be neutral
(Figure No. 24).

Figure No. 24 Financial Status of Borrowers

51.6%

17.7%

24.2%

4.2%

2.3%

In order to understand the demography of the
borrower, the respondents were also asked to
share their experience about the general level
of education of the borrowers. According to the
responses received, the borrowers belonged to

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