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LIST credit appraisal system is a smart banking system to analyze credit worthiness of borrower. This system helps to get decision while disbursing loan to any proponent. It calculates risk ratios according borrowers financial behavior and relation with bank. Credit Appraisal is a helps to discover the risks associated with the extension of the credit facility. It is generally carried by the financial institutions which are involved in providing financial funding to its customers. In LIST credit appraisal system Financial risk is assessed in terms of static ratios; it helps to measure performance & financial indicators of borrower.