Banking · Credit Appraisal

When assessing the 'Technical Viability' of a credit proposal for a manufacturing unit, which factor is the bank primarily concerned with?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1The projected profitability and the internal rate of return of the project.
2The availability of raw materials, power, water, and the suitability of the production process.✓
3The management's experience and integrity in the relevant industry.
4The market demand for the product and the competition from other players.

Correct answer

The availability of raw materials, power, water, and the suitability of the production process.

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