What precautions should be taken by a banker before advancing What precautions should be taken by a banker before advancing the loan or Investment? No doubt the advancing of loan is also risk as well. If the loan is for a longer period then risk will be also greater. So before advancing the loan a banker should keep in view the following precautions : Business Volume: Character : Character of the borrower depends upon honestly, family background, nature of employment, habits and the record of the past. So before advancing loan these things must be considered. 2. Ability To Repay : Before advancing loan a banker must be satisfied with the sources of the repayment of the funds. 3. Check The Assets : The banker should also check the property capital and borrower. This property can kept as a security of loan. In other words if the businessman financial condition is sound then it can be lended otherwise not. 4. Purpose Of Financing :- Funds should be provided f