Question

...............is the most essential part of loan management.

• A. Selection of the client
• B. Documentation
• C. Recovery management
• D. identification of the purpose of the loan

Answer 1

Answer:

C. Recovery management

Recovery management is often treated as the most critical part of loan management in practice because even after a loan is disbursed, the key task is ensuring timely repayment. Without effective recovery management, the loan system can fail regardless of client selection or documentation.