Credit Risk Grading (CRG) and CRG Score

Credit Risk Grading (CRG) and CRG Score

Credit Risk Grading or CRG is a great tool for measuring credit risk. It directly works for credit risk management. It helps to determine credit risk for banks and financial institute. This credit risk grading system is vital to take decisions both before or after approval of loan facilities of customer. Before sanction of credit it helps to decide to give loan or not.

Diverse Credit Risk Grading (CRG) under:

A reasonable meaning of the diverse classes of Credit Risk Grading is given as takes after:

Superior – (SUP) – 1; Good-(GD)=2; Acceptable – (ACCPT)- 3; Marginal/Watchlist-(MG/WL)- 4; Special Mention-(SM)- 5; Substandard - (SS)- 6; Doubtful - (DF)- 7; Bad/Loss – (BL)- 8       

Credit Risk Grading Score:

SUP		Fully cash secured
Good		85+
Acceptable		75-84
Marginal/Watchlist		65-74
Special Mention		55-64
Substandard		45-54
Doubtful		35-44
Bad & Loss		<35