What Businesses Should Know Before Applying for Structured Debt
In commercial lending and institutional finance, lenders often conduct a PD (Personal Discussion) as part of their credit assessment and due diligence process.
For businesses seeking funding whether through SME loans, working capital, LAP, commercial mortgage, or structured debt understanding the PD process can significantly improve preparedness, transparency, and approval readiness.
This guide is designed to help business owners, promoters, finance teams, and professionals understand:
- what a PD is,
- why lenders conduct it,
- the different types of PDs,
- what lenders usually evaluate,
- and how PDs impact commercial credit decisions.
1. WHAT IS A PD (PERSONAL DISCUSSION)?
A PD is a structured interaction conducted by lenders, NBFCs, banks, or credit institutions to
Better understand a borrower’s:
- Business operations
- Financial profile
- Repayment capability
- Property or collateral position
- Ownership structure
- Banking behavior
- Operational stability
- Risk indicators
- A PD may happen physically, digitally, through video interaction, or via field verification
- Depending on the nature of the loan and lender policies.
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