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All praise and thanks to Allah Almighty who graced me with the strength and guidance for completing this research. This book aimed to explain the loan evaluation method known as credit scoring. Credit scoring is a technique that helps banks decides whether to grant credit to applicants who apply to them or not. The main objective of the research was to evaluate credit risk in commercial banks of Pakistan using credit scoring models. Two credit scoring models were developed to assess the creditworthiness of the banks credit applications. It is highly recommended that commercial banks should use these proposed credit scoring models as a part of their evaluation process. By adopting these models banks can reduce their non performing loans. The proposed models have included all the factors that banks consider but in a systematic way.
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