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Lending is fundamental area of banking business. In lending process, Bank and Financial Institutions (BFIs) to assess borrower and their credit credentials from different angles to ensure proper utilization of facilities not only for fulfilling lending objectives but also to safeguard BFIs from unwarranted legal risk.

Realizing and making efforts to identify and manage legal risk is crucial from the very beginning of credit assessment and proper legal documentation rather to think over the matter only after arising any distress situation.