Credit Deci sion Flow for Retail Loans

RM approaches Customer De-Dupe checks Credit underwriting Other Credit

Init ial - Negative profile check Borrower profile No standard verificat ion Underwriting Yes requirement
customer for a submits pre-
Start documents - RBI defaulter identified in De- - Bo rrower catego ry standards - Eligibility calculation
Loan Pre-Sanction process

loan or vice defi ned - Negative companies,

check dupe check? - Years in employment fulfilled? - Income to installmen t
versa documents etc - Min. Income norm, etc ratio

Yes No

Identificat ion of
Dev iations for No
approv al Other credit req.
- IIR criteri a fulfilled?
- Loan Ten ure
- Loan Amount, etc
Yes

Verifies the
Credit Manager delegation of power
- Credit Manager Verifies the No Issues a
satisfied wi th to ascertain Approv ed by
verifies documents approv al of Rejection
documents and approv ing authority relevant authority?
- meets the borrower deviat ions letter
borrower profile & submits the credi t
approv al memo

Yes

RM
Re-negotiate
communicates to
Loan Sanction Process

the loan terms

Approv ing
with RM
Authority
No

No
Terms accepted by Issues a
Decli nes to borrow?
borrower? Sanction letter

Yes Yes

Loan
End
No rejected
Loan Post-Sanction process & Disbursement

No
Field
Yes Document Yes Legal
Investigation
Investigation Verfication e.g. Verification Verification e.g
(Address
posi tive? Pay slips, IT posi tive? property ti tle
Verification
Forms etc clear etc
etc)

Technical Collection of post Disbursement

Yes Yes Completion of
Verification Verification Verification dat ed cheques/ Request Form
Loan
posi tive? e.g. fair market posi tive? Standing instruction from the
Agreement
value etc for ECS mandate borrower

No No