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The following are the most important elements of a Written Loan Policy;
1. Statements of Lending: A statement that defines the type of loan, its maturities, quality and the size of loans.
2. Establish a Lending Authority: It should clearly define who is authorized to a loan
3. Establish Lines of Responsibility: It is making sure that all the information is reported to its department.
4. Operating Procedure: There should be appropriate operating procedures for soliciting, reviewing, evaluating, and making decisions on customer loan application.
5. Required Documents: All the required documents should be obtained for every loan application and must be filed properly...
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