This research study focuses on loan processing and credit management in public sector banks in Pune. Public sector banks play a vital role in providing financial support to individuals and businesses. Efficient loan processing and effective credit management are important for reducing credit risk, improving profitability, and ensuring customer satisfaction. In the modern banking environment, banks face challenges such as rising non-performing assets (NPAs), increasing competition, and changing customer expectations. The main objective of this study is to analyze the loan processing procedures and credit management practices followed by public sector banks in Pune. The study also examines factors affecting loan approval, repayment, and recovery systems. Primary data is collected through questionnaires from bank employees and customers, while secondary data is collected from reports, journals, and banking websites.The study highlights the importance of proper credit appraisal, documentation, and monitoring systems in improving banking performance and minimizing bad debts. The findings may help banks strengthen their credit management policies and improve operational efficiency.