What is credit appraisal and what are the tools being used to determine the credit worthiness mainly in project financing?

Credit appraisal is an important part of determining credit worthiness of the borrower, project finance requirement and viability of the project. 

The following will be looked at to arrive at the project finance requirement :

1. Establishing project cost through techno-economic viability / feasibility

2. Debt Equity structure agreed between the lender & the customer

3. Fixing tenor and project finance based on the expected cash flows to be generated / analyzing the Cash flow DSCR

4. Number of participants in the consortium lending arrangement / multiple banking arrangement

5. Company's / Promoter's history, track record

6. Industry in which the project is proposed.