Our Approach to Credit & Loan Review Audits
We adopt a structured review methodology focused on verifying loan documentation, borrower conduct, drawing power accuracy, fund utilisation and operational behaviour to ensure lending decisions remain supported by reliable and compliant data.
Key Audit Coverage & Deliverables
- Verification of sanction terms and compliance with approval conditions
- Review of loan documentation, security creation and insurance coverage
- End-use verification of funds and monitoring of borrower operations
- Drawing power analysis based on stock and receivable statements
- Identification of irregularities, stress signals and early warning indicators
- Review of financial performance, cash flows and repayment discipline
- Practical recommendations to improve portfolio quality and credit monitoring
Why Choose Us for Credit / Loan Review Audit
Our audits ensure credit decisions remain robust, compliant and backed by reliable financial information.
- Strong understanding of banking credit processes and risk frameworks
- Independent evaluation ensuring objective and accurate review
- Detailed, actionable insights to strengthen credit monitoring discipline
Frequently Asked Questions
What is a Credit or Loan Review Audit?
An independent examination of loan accounts to verify sanction compliance, documentation accuracy and borrower performance.
Why is this audit important for banks?
It prevents credit slippages, identifies early warning signs and ensures the loan portfolio remains healthy.
What areas are reviewed during the audit?
Sanction terms, compliance, security documents, fund utilisation, account behaviour and drawing power calculations.
Can the audit detect misuse of funds?
Yes, end-use verification is a core component of the audit.
What documents are required from the bank?
Sanction letters, loan files, financial statements, stock statements, account operations and compliance records.
Will this audit interrupt borrower operations?
No, most verification is carried out through documentation and account analysis.
How often should Credit Audits be conducted?
Regularly or as per bank policy especially for high-value or potentially stressed accounts.
Does this audit also review borrower financial health?
Yes, financial performance, cash flow position and repayment discipline are evaluated.
How does Sakariya & Associates add value?
Through precise documentation review, early detection of stress signals and actionable recommendations for lenders.