Suitability: Even when an advance satisfies all the previous principles, it may still not be a suitable one. The advance may run counter to national interest or against existing government regulations, etc. It may also be against the banks’ policy / motto. For example, NABARD lends more towards rural projects. It may not be suitable to the banks’ area of operation to lend to say, a power project. Such things need to be considered along with the other principles of lending.
