Borrower Rating Related to Credit Risk in Commercial Banks

Credit Risk is a risk that occurs when a lender or borrower fails to make payment or interest on time to the banks. This also decreases the overall rating of banks. At present most of the banks are facing that risk at large risk by having appropriate guidelines. So it is measured that such guidelines are not fruitful that is why a new approach to judge the borrower, in different manner inspired by the FICO score, is proposed. In this article a meeCheck model is proposed to calculate the overall rating of the borrower with reference to their past credit records along with total assets, total saving, total loans and also yearly expenses of the borrower. A model based formulae are given to easily rate the borrower in the scale of 10.