What is credit policy, what is kyc policy

Question

Accepted Answer

Credit policy outlines guidelines for extending credit to customers, while KYC policy ensures customer identity verification to prevent fraud.

Credit policy is a set of guidelines and procedures that a company follows when extending credit to customers.
It includes criteria for evaluating creditworthiness, setting credit limits, and managing credit risk.
KYC (Know Your Customer) policy is a set of procedures for verifying the identity of customers to prevent fraud, money laundering, and terrorist financing.
It involves collecting and verifying customer information such as name, address, and identification documents.
Both credit policy and KYC policy are essential for managing risk and ensuring compliance with regulations.

Accepted Answer

Credit policy
Cholamandalam Finance's lending rate is determined on a case-by-case basis and depends on a number of factors, including the loan-to-value ratio, loan tenure, and the type of transaction. The lending rate is periodically revised based on market volatility and the company's costs
KYC stands for "Know Your Customer". It's a mandatory process that verifies a customer's identity and address details when they open an account or periodically over time.                                                     The KYC policy is important for preventing money laundering and terrorist financing.

What is credit policy, what is kyc policy

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