The business of sanctioning unsecured advances is comparatively more risky and needs special care and attention on the part of the banker. In the absence of a charge over any specific asset, the safety of the advance depends upon the honesty and integrity of the borrower as much as upon the worth of his tangible assets taking the example of pret immobilier loans.

The banker has, therefore, to make proper enquiries not only about the borrower’s capacity to pay but also about his willingness to pay the amount. Though such enquiry is also necessary in case of a secured advance but its urgency is greater in case of an unsecured advance for obvious reasons. Lower interest rates are attainable through simulation pret encouraging socio-economic changes.

The credit worthiness of a person means that he deserves a certain amount of credit, which may be safely granted to him. His character, capacity and capital are the principle means by which his credit worthiness is judged by the bank. In foreign countries, specialized agencies collect all information relating to the status and financial standing of businessmen and supply the same to the bankers. Every bank maintains a Credit Investigation Department to collect information.