Executive Summary
- Credit officers follow a broadly consistent review sequence across PSU banks
- Document completeness is checked before any financial analysis begins
- DSCR and CIBIL are typically the first substantive checks after document completeness
- Narrative quality (your DPR's story) matters, but only after the numbers already pass muster
Step 1: Document Checklist First
Before any substantive financial review begins, a credit officer confirms the file is complete against the bank's standard checklist — KYC, financial statements, project documents, and any scheme-specific requirements. An incomplete file is typically returned at this stage rather than processed with gaps, which is why document completeness disproportionately affects how quickly a file moves, regardless of underlying business quality.
Step 2: CIBIL and DSCR
Once the file is complete, the credit officer's first substantive checks are typically CIBIL — for both entity and promoter — and DSCR on the proposed facility. These two checks alone determine whether a file proceeds to detailed appraisal or stalls early. A weak DSCR in your financial projections, even with an otherwise strong business case, is the single most common reason promising files don't advance.
Step 3: Collateral or Guarantee Structure
Next, the officer confirms the security structure — whether collateral is offered directly, or whether the file is routed through CGTMSE guarantee cover instead. This affects both the risk the bank is taking and the specific documentation required, and it is confirmed early because it shapes how the rest of the appraisal proceeds.
Step 4: The Business Narrative
Only once the quantitative checks are satisfied does the officer engage deeply with the DPR's narrative — market analysis, promoter background, technical feasibility. This narrative matters genuinely, but it functions more as context that explains and supports the numbers than as a factor that can compensate for weak numbers on its own.
Step 5: Site Verification
For most loans above a threshold — commonly ₹10 Lakh — a physical site visit is part of the process, verifying that the business premises, machinery, and operational claims in the file match reality. See our dedicated guide on what happens during site inspection for how to prepare for this step specifically.