NANO Ready Reckoner-NEW.docx

**CRISS FINANCIAL LIMITED** **NANO Enterprises Loan** **Ready Reckoner\ ** 1. **Product & Target Segment** +-----------------------------------+-----------------------------------+ | **Particulars** | **Details** | +===================================+===...

**CRISS FINANCIAL LIMITED** **NANO Enterprises Loan** **Ready Reckoner\ ** 1. **Product & Target Segment** +-----------------------------------+-----------------------------------+ | **Particulars** | **Details** | +===================================+===================================+ | Loan Product | Unsecured Loan to Nano | | | Enterprises | +-----------------------------------+-----------------------------------+ | Product Type | Individual loan | +-----------------------------------+-----------------------------------+ | Nature of the facility | Term loan | +-----------------------------------+-----------------------------------+ | Purpose of the loan | Working capital, business | | | expansion, purchase of machinery | | | and / or any other business | | | requirement. | +-----------------------------------+-----------------------------------+ | Target Segment | 1. Self-employed individuals. | | | | | | 2. Micro, Small and medium sized | | | small shops, retail stores, | | | small manufacturing unit, | | | retailers, dealers, traders, | | | and service providers engaged | | | in various business | | | activities | +-----------------------------------+-----------------------------------+ 2. **Applicant/Co-applicant Eligibility** +-----------------------------------+-----------------------------------+ | **Particulars** | **Details** | +===================================+===================================+ | Eligibility for Applicant and | 1. Self-employed individuals | | Co-applicant | engaged in business activity. | | | | | | 2. Minimum one co-applicant is | | | mandatory. Borrower whose | | | major income is considered in | | | the loan structure shall be | | | taken as main applicant. | | | | | | 3. Spouse is to be considered as | | | co-applicant mandatorily. | | | | | | 4. In cases where the spouse is | | | not available or not eligible | | | to be a co-applicant, an | | | exception may be made to | | | include a blood relative such | | | as the father, mother, or | | | brother as a co-applicant. | +-----------------------------------+-----------------------------------+ | Age of applicant/co-applicant | 1. Age criteria for applicant: | | | | | | a. Minimum 21 years at the | | | time of loan application | | | | | | b. Maximum 60 years at the | | | time of loan application | | | | | | 2. Age criteria for | | | co-applicant: | | | | | | c. Minimum 21 years at the | | | time of loan application | | | | | | Maximum 70 years at the time of | | | loan application | +-----------------------------------+-----------------------------------+ | Applicant Profession | Any individual engaged in | | | business activities for atleast | | | last 1 year. | +-----------------------------------+-----------------------------------+ | Applicant Gender | Male or Female | +-----------------------------------+-----------------------------------+ | Resident & Business stability | 1. Must be within the branch | | | business catchment area (40 | | | Km radius) | | | | | | 2. Ownership: Rented or Owned | | | | | | 3. Either the residence or the | | | business to be self-owned. In | | | case of exceptions where in | | | both the residence and the | | | business are rented, | | | stability of business and | | | residence at the same premise | | | must be at least 2 years. | | | | | | 4. Requirement criteria for | | | Stability in business and | | | residence premises- | | | | | | **Business & Residence Premise* | | | * **Stability Requirement** | | | ------------------------------- | | | --- ----------------------------- | | | ------------------- | | | Both Rented | | | 2 years for business and 2 ye | | | ars for residence | | | Either one is owned | | | 1 year for business and 1 yea | | | r for residence | +-----------------------------------+-----------------------------------+ | Seasonality of the business | 1. Business should be permanent | | | and should have regular sales | | | throughout the year; "only | | | seasonal" business is not | | | eligible. Seasonality shall | | | be considered based on the | | | regularity of primary | | | activities throughout the | | | year and nature of activity | | | verified through documentary | | | evidence (if available). | | | | | | 2. Loan proposal not to be | | | considered if there is no or | | | very low business activity | | | during off-season. | | | | | | 3. Business involved in | | | standalone perishable item to | | | be avoided due to low shelf | | | life, high wastage, less | | | capital intensive and low | | | barrier to exit | +-----------------------------------+-----------------------------------+ | Negative & Cautious profile | 1. Lawyers / Lawyers in family | | | | | | 2. Direct family members of | | | policemen including | | | paramilitary forces or | | | connected to police | | | department viz. home guards, | | | etc. | | | | | | 3. Leasing Business/Small | | | Financiers/Chit Financiers, | | | etc. | | | | | | 4. Collection | | | Agencies/Detective/DSA/DMA of | | | any finance company. | | | | | | 5. Journalist/Newspaper | | | owners/media | | | affiliates/Opinion leaders | | | | | | 6. Charitable and nonprofit | | | organizations/NGOs | | | | | | 7. Money market traders, | | | Speculators | | | | | | 8. Religious leaders, Liquor | | | business/Bullion Traders | | | | | | 9. Video Parlours / Cable | | | Operators / Cyber Café | | | | | | 10. Person / Person in family | | | with criminal background | | | | | | 11. Any person where it is not | | | possible to collect due to | | | violence / danger to field | | | staff | | | | | | 12. Butcher/Traders in | | | Animals/Lottery Trader/ | | | Politically Exposed Person | | | (PEP)/Online Gaming/Betting | | | Business. | | | | | | 13. Any other defined locally | | | basis portfolio or market | | | indicators | | | | | | ***Note:*** Any deviation shall | | | be approved jointly by | | | Head-Credit and CBO | +-----------------------------------+-----------------------------------+ | KYC document | For both applicant & | | | co-applicant: Aadhaar, Voter ID | | | card & PAN/Form 60 | | | | | | **Ownership proof:** | | | Business/residence proof is | | | mandatory as applicable. | | | | | | At least one of the below | | | documents (indicative list) is | | | mandatory for establishing the | | | business/residence proof- | | | | | | 1. Udhyam Registration | | | Certificate (URC) -- as a | | | preferred requirement | | | | | | 2. Sale Deed/Title | | | deed/registration | | | certificate/GST registration | | | certificate | | | | | | 3. R.T.C (Records of Rights, | | | Tenancy, and Crop) Extract | | | | | | 4. Latest Municipal tax paid | | | receipt/Latest Property tax | | | receipt | | | | | | 5. Latest Utility bill | | | (Electricity/Telephone/Gas) | | | | | | 6. Proof of occupancy issued by | | | local authorities | | | | | | 7. Certificate for registration | | | under shops & establishment | | | | | | 8. Any other document that | | | establishes ownership of | | | business premise/residence | | | | | | **Income proof (as per | | | availability)** | | | | | | 1. ITR | | | | | | 2. Bank SOA (statement of | | | Account) for last 6 months | | | (applicable for applicant) | | | | | | 3. Bank credit/Salary slip | | | (applicable for co-applicant) | | | | | | 4. Salary statement/certificate | | | (applicable for co-applicant) | +-----------------------------------+-----------------------------------+ | Credit Bureau Check (Mandatory | 1. Report validity: 30 days | | for Applicant & Co-Applicants) | (till disbursement date) | | | | | | 2. No current delinquency in any | | | existing active loans. Any | | | discrepancy in bureau report | | | should be justified with NOC | | | from the financial | | | institution. | | | | | | 3. New To Credit (NTC) cases are | | | allowed basis business | | | profile/cash flow/financials | | | of the customer. | | | | | | 4. No instances of more than 60 | | | DPD in the last 12 months. | | | i.e. continuously 2 missed | | | EMIs in last 12 months in | | | active loans. | | | | | | 5. Repayment obligation | | | | | | 6. Should not be NPA, Write-off, | | | Settled Account, Doubtful, | | | Sub-standard | | | | | | Any deviation to be approved by | | | Head -- Credit. | +-----------------------------------+-----------------------------------+ 3. **Loan Terms** +-----------------------------------+-----------------------------------+ | **Particulars** | **Details** | +===================================+===================================+ | Loan Amount (Rs) | Minimum: Rs.50,000/- Maximum: | | | Rs.2 lakh (Max: 1 lakh in 1^st^ | | | Cycle) | +-----------------------------------+-----------------------------------+ | Tenure | 12 -- 36 Months | | | | | | Max 24 Months for loan upto 1 | | | Lakh | +-----------------------------------+-----------------------------------+ | Top up Loan | 1. This can be offered after | | | completion of 50% of core | | | loan tenure | | | | | | 2. Existing core loan is to | | | regular as on date. | | | | | | 3. Amount can be as per the | | | eligibility calculation | | | considering repayment | | | obligation of current loan. | | | | | | 4. Loan amount for Top-up loan | | | cannot exceed the original | | | core loan amount. | +-----------------------------------+-----------------------------------+ | Renewal Loan | 1. This can be offered after | | | completion of 75% of core | | | loan tenure. Subsequent | | | renewal loan is to be | | | disbursed post successful | | | closure of the existing core | | | loan. | | | | | | 2. Existing core loan is to | | | regular as on date. | +-----------------------------------+-----------------------------------+ | Partial- payment/Part payment | 1. Part payment done within 6 | | | months of disbursement: | | | Charges as applicable | | | | | | 2. Part payment done after 6 | | | months: Nil charges | | | | | | 3. Either tenure or the EMI can | | | be reduced | | | | | | (Either tenure or EMI can be | | | reduced) | +-----------------------------------+-----------------------------------+ | Foreclosure | Allowed with charges | +-----------------------------------+-----------------------------------+ | Credit Life Insurance | 1. Mandatory for the applicant | | | (primary income earner) | | | | | | 2. Entire loan amount to be | | | covered as per the loan | | | tenor. | +-----------------------------------+-----------------------------------+ | Loan Eligibility Matrix | Below is the Loan amount | | | eligibility basis the ownership | | | criteria and documents provided | | | by the applicant/co-applicant. | | | | | | **Business & Residence Premise* | | | * **Max Loan Eligibility in Cyc | | | le 1** | | | ------------------------------- | | | --- ----------------------------- | | | -------- ------------ | | | Both Rented | | | Rs 75k | | | Rs 1.5 lac | | | Either one is owned | | | Rs 1 lac | | | Rs 2 lac | | | | | | **Documents if available** | | | | | | **Max Loan Eligibility | | | subject to CFA for Cycle 1** | | | ------------------------------- | | | --------------------------------- | | | --------- ----------------------- | | | ------------------------------ | | | Avg. Monthly Balance (AMB)\> 10 | | | k in last 6 months (active bank a | | | ccount) Rs 1.25 lacs | | | ITR/GST return available for la | | | st 2 years | | | Rs 1.25 lacs | | | If both are available | | | | | | Rs 1.5 lacs | +-----------------------------------+-----------------------------------+ | Interest Rate | Minimum 24-27% on reducing basis. | +-----------------------------------+-----------------------------------+ | Processing fee | 2.0%+ applicable taxes | +-----------------------------------+-----------------------------------+ **\ ** ***Charges*** +-----------------------+-----------------------+-----------------------+ | **Sl no** | **Particulars** | **Charges** | +=======================+=======================+=======================+ | 1 | Payment Instrument | Rs. 200/- plus | | | Bounce Charges | applicable taxes | | | (Cheque/ NACH or any | | | | other mandates) on | | | | each presentation per | | | | instrument | | +-----------------------+-----------------------+-----------------------+ | 2 | Penal Charges for | Rs. 200 per instance | | | delay in payment of | plus applicable taxes | | | outstanding dues/ | | | | overdue loan amount | | +-----------------------+-----------------------+-----------------------+ | 3 | Payment instrument | Rs. 200 /- per swap | | | Swap fee for changing | (including applicable | | | repayment instrument/ | taxes) | | | NACH | | +-----------------------+-----------------------+-----------------------+ | 4 | Statement of Accounts | Rs. 200/- for each | | | charges (physical | statement, plus | | | copy) | applicable taxes | +-----------------------+-----------------------+-----------------------+ | 5 | Soft copy of | Nil | | | Statement of Account | | | | charges | | +-----------------------+-----------------------+-----------------------+ | 6 | Duplicate copy of NOC | Rs.200 (excluding | | | | applicable taxes) for | | | | issue of Duplicate | | | | NOC. | +-----------------------+-----------------------+-----------------------+ | 7 | Part payment charges | - Part payment done | | | (on amount collected) | within 6 months | | | | of disbursement: | | | | Applicable charge | | | | is 4% on the | | | | amount collected | | | | | | | | - Part payment done | | | | after 6 months: | | | | Nil charges | +-----------------------+-----------------------+-----------------------+ | 8 | Foreclosure charges | 6% on the principal | | | (on principal | outstanding. | | | outstanding) | | +-----------------------+-----------------------+-----------------------+ | 9 | Foreclosure Letter | Rs. 200/- plus | | | Charges/ Soft copy of | applicable taxes | | | foreclosure statement | | | | charges | | +-----------------------+-----------------------+-----------------------+ | 10 | Any other incidental | As assigned/ | | | charges incurred by | allocated to the loan | | | Criss Financial | account | | | Limited during the | | | | course of the loan | | +-----------------------+-----------------------+-----------------------+ **Note:** Any waiver/deviation is to be finally approved by Chief Business Officer (CBO). **Cash Flow Analysis** +-----------------------------------+-----------------------------------+ | **Particulars** | **Details** | +===================================+===================================+ | Income consideration | Income for applicant and | | | co-applicant is to be assessed as | | | per the below guidance- | | | | | | 1. **Business Income** (As per | | | the cash flow template). | | | Triangulation to be used to | | | arrive at net income from | | | business. (Indicative | | | Template attached in | | | **Annexure-3**). The Income | | | assessment template is part | | | of the mobile application to | | | be used by the Credit Manager | | | at the time of the PD. | | | | | | 2. **Salary income of | | | co-applicant** | | | | | | a. Bank salary/Salary slip: | | | | | | i. 100% to be considered | | | basis the documentary | | | evidence such as | | | credit in bank | | | account, Salary | | | slip/statement, etc. | | | | | | b. Cash Salary to be | | | considered basis the | | | assessment by Credit | | | Manager (with/without | | | record) | | | | | | ii. With Record: Salary | | | certificate of the | | | employer | | | | | | iii. Without Record: | | | assessment by Credit | | | Manager | | | | | | 3. **Other Income** | | | | | | **Heads of income** **Documen | | | tary proof/assessment** | | | --------------------- --------- | | | --------------------------------- | | | --------------------------------- | | | --------------------------------- | | | ------------------------------ | | | Agriculture Basis the | | | land holding record and assessme | | | nt by BCM | | | Rental As reflec | | | ted in ITR/Bank statement/Lease a | | | greement and basis PD verificatio | | | n by BCM, if there is no specific | | | documentary proof available | | | Tuition income As reflec | | | ted in ITR/Bank statement and/or | | | basis PD verification by BCM. | +-----------------------------------+-----------------------------------+ | ***Total Income*** | ***Total Income = Income from | | | Business (1) + Salary Income (2) | | | + Other Income (3)*** | +-----------------------------------+-----------------------------------+ | ***Loan eligibility | ***Cash flow method. Income and | | calculation*** | expenses to be calculated basis | | | templatized format with various | | | triangulated Q & A.*** | | | | | | **[Final loan eligibility amount | | | to be the least of the | | | following:]** | | | | | | 1. Loan amount requested by | | | customer | | | | | | 2. Loan eligibility based on | | | Cash Flow Assessment (CFA): | | | ***Considering FOIR at 50% | | | and the requested tenure, | | | loan amount is to be | | | derived.*** | | | | | | 3. Eligibility based on customer | | | affordable EMI: Loan amount | | | is to be derived basis the | | | affordability. | | | | | | 4. Loan amount recommended by | | | the Credit Manager | +-----------------------------------+-----------------------------------+ **[Credit approval Matrix:]** - Loan amount upto Rs 1 lakh: BCM (Branch Credit Manager) - Loan amount \> Rs 1 lakh: CCH (Cluster Credit Head) 4. **Loan Eligibility & Approval Matrix** +-----------------------------------+-----------------------------------+ | **Particulars** | **Details** | +===================================+===================================+ | Method of Income assessment | Cash flow analysis | +-----------------------------------+-----------------------------------+ | Personal Discussion (PD) | PD to be done at the operating | | | business premise. | +-----------------------------------+-----------------------------------+ | Final Loan Eligibility | Final loan eligibility will be | | | LEAST of the following: | | | | | | 1. Loan amount requested by the | | | customer | | | | | | 2. Loan eligibility based on | | | Cash Flow Assessment (CFA) | | | | | | 3. Eligibility based on customer | | | affordable EMI | | | | | | 4. Loan amount recommended by | | | the Credit Manager | +-----------------------------------+-----------------------------------+ 5. **Disbursement & Repayment** +-----------------------------------+-----------------------------------+ | **Particulars** | **Details** | +===================================+===================================+ | Sanction validity | The offer letter/sanction letter | | | is valid for a period of 90 days | | | from the date of system sanction, | | | post which the case shall be | | | treated as fresh case. However, | | | bureau validity is 30 days till | | | disbursement from latest bureau | | | check date. | +-----------------------------------+-----------------------------------+ | Mode of disbursal | - Transfer to customer's | | | (Applicant/Co-applicant) | | | account by way of | | | IMPS/NEFT/RTGS etc. | | | | | | - Processing fee, insurance | | | premium and other applicable | | | charges as applicable are | | | deducted from the | | | disbursement amount and net | | | amount is transferred to the | | | customer's bank account. | +-----------------------------------+-----------------------------------+ | Disbursement tranche | Single tranche | +-----------------------------------+-----------------------------------+ | Mode of repayment | 1. Monthly repayment frequency | | | on 4^th^ of every month. | | | | | | 2. In case the due date is | | | Sunday or a holiday, | | | instalment/ cheque/ECS/NACH | | | to be presented on one day | | | before and NACH hit date will | | | remain the same. | | | | | | 3. NACH/ECS to be taken from | | | public sector, private sector | | | banks. Co-operative banks not | | | allowed. | +-----------------------------------+-----------------------------------+ 6. **PROCESS FLOW**