What is credit appraisal, what are its contents?

Proper evaluation of the customer is perfomed which measures the financial condition and the ability of the customer to repay back the loan in future. Generally the credit facilities are extented against the security know as collateral. But even though the loans are backed by the collateral, banks are normally interested in the actual loan amount to be repaid along with the interest. Thus, the customer's cash flows are ascsertained to ensure the timely payment of the principal and the interest.

Source: AskMeHelpDesk (https://www.askmehelpdesk.com/credit/credit-appraisal-65908.html)