RETAIL CREDIT

SEPTEMBER,2013

RETAIL CREDIT
Characteristics :
Small Loan sizes Large number of customers Target customers are normally an individual or small enterprise Standard Product offerings. Simplified processes & delivery Decentralised & quick decisions Centralised operations reduces the cost Risk Management at portfolio level

INDIVIDUAL RETAIL LOAN

Features :
Type of facilities viz. Auto loan, House loan, Personal loan Secured / unsecured Guaranteed / not guaranteed Interest Rate Fixed / Floating Tenure of Loan Loan to Value Ratio - Margin Loan Eligibility Credit scoring & EMIs Negative / Caution list / Credit Bureau (CIBIL)

RETAIL CREDIT - Process

It consists of Account Acquisition viz. lead generation, sourcing, collecting documents, verification, credit evaluation, completing pre-disbursement formalities, disbursements & collecting post disbursement documents. Account Management viz. Document storage, PDC deposition at regular intervals, collections, recovery, portfolio monitoring & customer service.

RETAIL CREDIT Appraisal & Evaluation

Appraisal :
Customer assessment Asset risk

Evaluation :
Dependability on the documents submitted. Capacity to repay income source whether regular / irregular Capacity to meet the EMI liability in adverse conditions Intention to repay Past track record Concerned assets serve as a good security cover or not ?

THANK YOU