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During this stage, the entrepreneur seeking financing from the financial institution, approaches the institution with his project. The Business Development division holds informal discussions with the promoter to assess the eligibility of the project for financing. In case of state financial institutions, there are typically various schemes under which these projects could be taken up and financed. The institution ascertains the applicability of the scheme under one or the other of these projects at this stage. Only the prima facie suitability of the project is ascertained at this stage without any detailed analysis being taken up. Apart from the eligibility of the project, the capability of the promoter in bringing in his share of equity capital and ability to provide suitable collateral of the nature required. The Application and Preliminary Scrutiny stage assumes significance in that in case of small projects, which are largely promoter and location dependent. Detailed analysis in case of these projects at best provides indicators and cannot generally be of as rigorous nature as in case of larger projects. Hence in case of small projects, projects that are found prima facie eligible for lending also by and large cross the detailed appraisal stage and are sanctioned financing. Subject to prima facie suitability of the project at the stage of preliminary scrutiny, the proposal is taken up for Detailed Appraisal is taken up. Appraisal and Sanction
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