The 4Cs that banks need to look out for before extending any loans or advances are, Character of the borrower and the intention of repaying the loan -Collateral provided has to be adequate and loan disbursed should be keeping in mind the loan to value ratio -Capacity of the borrower to repay the loans by evaluating the current and future revenue projections. -Conditions of the industry and other factors like the market and environment as well as the relative position of the borrower in the industry.