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In a very brief and precise wording, credit appraisal is:
The process by which the lender assesses the credit worthiness of the borrower.
Credit Appraisal is a privilege given to the customer which they deserves to increase their credit limit base on the good history of the customer on payment and target achievement.
A credit appraisal is an important part of determining the eligibility for a home loan, and the quantum of the loan. A prospective borrower has to go thorough the various stages of the credit appraisal process of the bank. Each bank has its own criteria to satisfy itself on the credit worthiness of the borrower.
