A REPORT

ON

STUDY OF CREDIT RISK AND RISK MANAGEMENT OF

OVERSEAS EDUCATION LOAN INCRED

SUBMITTED TO
MR. NILANJAN CHATTORAJ
(PRODUCT HEAD, INCRED- INDIA)
PROF. SILPY GUPTA
(FACULTY MEMBER, IBS-MUMBAI)

SUBMITTED BY-
GOSIYA MARAJ
17BSP0946
2017-2019

DATE OF SUBMISSION
25-04-18

1
 TABLE OF CONTENT
TITLE PAGE NO.

 ABSTRACT 4

 HISTORY 5

 INTRODUCTION 7

 COMPANY DESCRIPTION 7

 TYPES OF LOANS 7

 INCRED FUTURE PROSPECT 8

 FINANCIAL OUTLOOK 9

 MARKETING OUTLOOK 11

 SWOT ANALYSIS 11

 PROTER‘S VALUE CHAIN 12

 HR OUTLOOK 13

 LATEST NEWS 16

 EDUCATION LOAN OVERVIEW 18

 STUDENT MOBILITY IN OVERSEA SECTOR 18

 DEMAND AND SUPPLY FACTOR CONTRIBUTION 19

 INCRED APPROACH TOWARDS EDUCATION LOAN 19

 PRODUCT BRIEF 19

 3 PILLAR OF EDUCATION LOAN 19

 LOAN ASSESMENT PARAMETERS 20

 OBJECTIVE 22

 METHODOLOGY 22

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  OPERATION AND DATA MANAGEMENT 22

 CIBIL REPORT 23

 UNDERWRITING PROCEDURE 24

 ROI ELIGIBILTY 24

 DISBURSEMENT 24

 FOREX. PROCESS MANAGEMENT 25

 LEARNING OUTCOME 25

 LIMITATION 26

 BIBLOGRAPHY 27

 LIST OF TABLES

 TABLE 1 21
 TABLE 2 21
 TABLE 3 21
 TABLE 4 22

 ANNUXURE

 ANNEXURE 1 28
 ANNEXURE 2 30

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 ABSTRCT
I am currently working at InCred Financial service, which works as Non Banking Finance
Company which offers a broad portfolio of products that cuts across affordable home loans,
personal loans, education loans and SME business loans.

InCred is credit for InCredible India. InCred was incorporated in 2016 by Bhupinder Singh,
ex-head of the Corporate Finance division of DeutscheBank. It is headquartered in Mumbai,
Maharashtra. The company focuses on Consumer Loan, Home Loan, Education Loan, and
SME Lending.InCred has simplified the lending process with a sharp focus on serving the
borrowers‘ unique needs and circumstances -offering the customer a truly superior borrowing
experience. InCred is a new kind of technology led finance company taking a radical
approach to lend the loans. InCred got License from RBI-NBFC license as Visu leasing
private ltd.for education loan SME and personal loan, HFC as Housing finance company
license only for Housing loan.

Working with InCred help me to understand the overall process of providing overseas
education loans.It give me the knowledge about the underwriting process of overseas
education loans, Help to identify the issues related to hold and decline of overseas education
loans, give knowledge of other sector related to overseas education loan (foreign exchange
process) and to understand the CIBIL report in a better way.

I Worked with the operation team to understand the operation and data management process
and CIBIL report. Now I am working with credit team to do the underwriting parts. I will
work on disbursement to understand, how loan get disbursed.

I learn how to Analyze different cases which helps to know the different document required
for the loans. I Got an idea about the bank from which we can take NACH ,the bank account
having MOD facilities and different account like cash credit , overdraft account from which
NACH can‘t be avail. InCred help me to understanding different account like NRI ,NRO and
NRE ,Gain knowledge about the market rate for overseas education loan and competitive
strategies used by competitor, Grasp an idea about the entrance test score, its minimum and
maximum requirement, Got to know about STEM courses, pathway program and different
level for different program, Gain knowledge of different education facilities in different
countries like Erasmus mundus.

4
 HISTORY

InCred Finance, a Mumbai-based non-banking financial company offers a broad portfolio of

products that cuts across affordable home loans, personal loans, education loans and SME
business loans. The company plans to be a technology-led financial services company to
make lending quick, simple and hassle-free. It would leverage technology and the Internet to
make credit decisions, loan disbursal and collections quicker and more efficient.InCred will
start business with SME financing and three retail-focused ventures – unsecured consumer
finance, mortgages and education loans.

When Bhupinder Singh, who was Head of Investment Banking and Co-head of Banking and
Securities for Asia-Pacific at Deutsche Bank moved into NBFC,it gave him the chance to
observe the Indian market closely. Interactions with various market participants as well as
regulators and the government convinced him about the opportunity in the consumer and
SME lending space. After some hard thought, Bhupinder decided to start InCred in 2016.

InCred has received about Rs 500 crore of funding from several affluent individuals
including former Deutsche Bank co-CEO Anshu Jain and private equity firms. Bhupinder
Singh and Manipal Group‘s managing director and CEO Ranjan Pai have infused Rs 150
crore each into InCred to start operations soon with a capital base of Rs 500-600 crore.
Gaurav Dalmia, founder and chairman of Landmark Holdings, IDFC PE and Alpha Capital
have put in Rs 50 crore each. The company has also acquired peer-to-peer lending platform
Instapaisa, founded by Nikhil Sama, who has joined InCred as its CEO of the consumer
business and managing director. The company has hired Prashant Bhonsle, former chief of
education-loan provider Credila, to head the education vertical. It has also brought Nitin
Agarwal, one of the founders of e-commerce platform Yebhi.com as chief operating officer
and chief architect for technology. Prior to this, Agarwal was a director with boutique
investment banking firm Equirus Capital.

The Mumbai-based company launched its operations in January and offers loans for personal
and small business needs, affordable homes and education with a ticket size that ranges from
Rs 50,000 to Rs 10 crore. The lender claims to have 13 branches and around 300 employees
in 10 cities. It has disbursed Rs 100 crore in loans in the first three months.

5
InCred is looking to target nearly 100 million prospective customers who are currently served
neither by a commercial bank nor by a rural micro-finance institution (MFI). A large number
of these are concentrated in tier-2 and tier-3 towns. A bigger focus is on the millennials who,
with a family income between Rs 25,000 to Rs 1 lakh, have never taken a loan. These
individuals don‘t have much credit underwriting history attached to them.

At present, however, 66 percent of InCred's customers are from the six biggest cities in the
country. While predicting this trend to continue for the first six to nine months, Bhupinder
Singh claims that in the coming two to three years, this number will reduce to 33 percent. The
rest will be contributed by customers from the next 15 biggest cities and towns.

6
 INTRODUCTION

InCred is credit for InCredible India. InCred Finance is a Non-Banking Financial Company in
India. InCred was incorporated in 2016 by Bhupinder Singh, ex-head of the Corporate
Finance division of DeutscheBank. It is headquartered in Mumbai, Maharashtra. The
company focuses on Consumer Loan, Home Loan, Education Loan, and SME
Lending.InCred has simplified the lending process with a sharp focus on serving the
borrowers‘ unique needs and circumstances -offering the customer a truly superior borrowing
experience. InCred is a new kind of technology led finance company taking a radical
approach to lend the loans. InCred got License from RBI-NBFC license as Visu leasing
private ltd.for education loan SME and personal loan, HFC as Housing finance company
license only for Housing loan.

Different types of loans provided by InCred-

 EDUCATION LOANS: InCred aims to support the India growth story and to aid current
and future generations of Indians embark on their personal nation-building journeys. InCred
Education Loans are designed to bridge the gap between personal potential and financial
feasibility for students seeking education beyond K-12, both in India as well as overseas.
 PERSONAL LOANS: InCred‘s consumer business focuses on providing unsecured personal
loans that are both convenient to process as well as fairly priced. InCred‘s personal loans are
the perfect solution for financing many of life‘s needs from medical procedures, weddings,
honeymoons, holidays, home renovation, debt refinancing to auto repair or anything else that
life throws at you.
 HOME LOANS: InCred home loans business focuses on a consumer segment that is not a
priority for traditional lenders like most banks and housing finance companies. InCred focus
on affordable housing (loans of Rs 10-30 lakhs) to serve hard working families who might
not find the majority of India‘s lending institutions receptive to their needs.

 SME BUSINESS LOANS: InCred providing working capital, growth capital and tailor-
made financing solutions. InCred aim to help India‘s entrepreneurs unlock their growth
potential through quick and timely access to finance.

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 INCRED FUTURE PROSPECT
Apart from microfinance and vehicle loans, InCred is planning to enter two new categories—
loans for car accessories and educational infrastructure. The average ticket size for the car
accessories segment would be Rs 40,000.
Besides, it is talking to K-12 schools that need money to add classrooms, set up sports
facilities or build an auditorium. The ticket size for loans in this segment will be around Rs 3
crore and the target for the loan book is Rs 500 crore in next two-three years.
InCred is also think to enter into furniture rental. Startups in this segment, such as Rentomojo
and Furlenco, require capital both for growth as well as working capital, but banks don‘t meet
their needs. InCred seeing tremendous demand at the right price and sensible risk in this
segmen.

Acquisition plans
In the microfinance segment, InCred is looking for companies with an asset book of at least
Rs 200-250 crore. The microfinance segment has been impacted adversely in recent months
due to the central government‘s ban on high-value banknotes in November and farm loan
waivers by several state governments. InCred decide on the timing of these acquisitions after
considering such macroeconomic factors.
InCred plans to start offering micro loans in rural areas with a ticket size of Rs 10,000-
50,000. The company has already tied up two so-called business correspondents that originate
loans on its behalf. The company is looking to build a loan book of Rs 500 crore in the next
two-three years in the microfinance segment. The lender also recently started lending for new
two-wheelers and used cars, a category it calls ‗wheels financing‘. The ticket size is Rs
40,000 for two-wheelers and up to Rs 4 lakh for used cars. The company said NBFCs can‘t
compete in the new-car segment as banks offer lower interest rates. The interest rate for used
cars is around 14%, high enough for NBFCs to operate in the segment.
For the vehicle loans segment, too, InCred is targeting a loan book of Rs 500 crore in the
next two to three years. InCred hopes to make acquisitions in both these segments within the
next four to five months. InCred has also invested in a few startups in return for a 10-15%
stake. The company had invested in peer-to-peer lending platform Instapaisa and acquired the
startup last year. ―The idea is to support the sector and young entrepreneurs,‖ Singh said. ―In
the process, InCred will learn a trick or two from these smart players in the fintech space.‖

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 FINANCIAL OUTLOOK
Target:

InCred is targeting a loan book of Rs 1,500 crore and aims to double its workforce by
December 2018. SME lending will make up nearly half of its loan book. Housing loans may
account for a quarter of its portfolio and consumer loans about 10%. The other segments will
contribute the remaining.

Partnerships: 20-odd partners and growing rapidly

Total number of transactions: Sanctioned loans to around 1,000 customers in the first two
months of operations.

Size of loan book: Have disbursed Rs 100 crore loans

Loan mix: According to the founders, 33 percent of loans disbursed are towards SME
business loans with the rest roughly divided among home loans, education, and personal
loans.

Average ticket size:

 Home loans: Rs 3 to Rs 30 lakh

 Interest rates: 11 percent

 Personal loan: Rs 10,000 to Rs 5 lakh

 Interest rate: Short tenure: 16 to 18 percent

 Business loan: Rs 10 lakh to Rs 10 crore

 Interest rate: 13 to 14 percent

 Education loan: Rs 10 lakh to Rs 50 lakh

The average interest rate for the firm is in the 13 to 14 percent range.

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 Capital raised:

Raised close to Rs 600 crore in equity funding.

Investor snapshot:

 Anshu Jain, ex Co-CEO of Deutsche Bank

 Other Investors - Ranjan Pai, CEO and MD of Manipal Education
 Gaurav Dalmia, Founder & Chairman, Landmark Holdings
 IDFC Private Equity, Alpha Capital, Paragon Partners (Founded by son of HDFC Chairman,
Deepak Parekh)

Like other NBFCs, InCred also manages its surplus liquidity by investing in short-term
lending activities such as interbank market, commercial paper, amongst others.

Sources of Funds

Equity (600 Crs raised from private equity players) and Debt (raised from HDFC, IDFC )

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 MARKETING ASPECTS

SWOT ANALYSIS

STRENGTH WEAKNESS
 InCred use technology and data science to Being a start up:
make lending quick and easy.  More work load than number of employees.
  Less resources available.
Loan without collateral upto 40 lakhs or
more.  Chaos arise when files gets misplaced.
 Quick decision making-Disbursement
according to the need of student
 Re-financing facilities of existing loan and
Lower EMI
 Income defined repayment structure of co-
applicants.

OPPOURNITIES THREAT
  As a start up InCred may face threat from its
Student numbers from India to the United
States, Australia, Canada, New Zealand and competitor which are in business from 20
Germany grew faster- led to grow of years.
education industry  Its competitor are:
 Government aim to raise GER to  HDFC Credila, part of HDFC Group
 30% by 2020 = addition of 5-7 mn  Avanse, part of Dewan Housing Finance
 seats over next 4-5 years Group (DHFL)
  Axis Bank
InCred is planning to enter two new

categories—loans for car accessories and Auxilo, founded by Neeraj Saxen
educational infrastructure lead to an (ex-Avanse CEO)
increase in growth prospect.  Changes in government policies (e.g.trump
 People awareness toward education through H1B visa policy) cause threat to education
different government scheme (e.g. Beti industries.
bacaho beti padhao).

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 PORTER VALUE CHAIN

Porter's Five Forces Framework is a tool for analyzing competition of a business. It draws
from industrial organization (IO) economics to derive five forces that determine the
competitive intensity and, therefore, the attractiveness (or lack of it) of an industry in terms of
its profitability. The Porter‘s Value Chain Analysis focuses on the systems and activities with
customers as the central principle rather than on departments and accounting expense
categories. This system links systems and activities to each other and demonstrates what
effect this has on costs and profit. Consequently, it (Value Chain Analysis) makes clear
where the sources of value and loss amounts can be found in the organization.

According to Porter value chain , InCred lies in the category of –

PRIMARY ACTIVITIES AS

SERVICE: InCred lie in service as primary activities as InCred is know for it service provide
to the customer for providing quick disbursement, lower EMI , flexible rate of interest and
income based repayment structure.

MARKETING AND SALES:

InCred networking stratergy make it different from that of other company. The company have
tie up with college/University, consultant , coaching centre which help the company to
provide huge customer.

SECONDARY ACTIVITIES:

TECHNOLOGY DEVELOPMENT: InCred use technology and data science to make lending
quick and easy. Currently it launches its own Loan Orientation System (LOS) and Loan
Manangement system (LMS).
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 HUMAN RESOURCE OUTLOOK
Human Resource Management initiatives in any Organization endeavor to change, redefine,
revisit, renew, reinvent, revitalize & restructure the Organization architecture. This is
effectively done with the help of alignment & integration of HR policies & strategies with
business goal & objectives.

The main objective of HR Practices is to differentiate the organization from its competitors
by effective and efficient HR Practices. By following this, the organization does its whole
work process. The objective of HR Practices is to increase productivity and quality, and to
gain the competitive advantage of a workforce strategically aligned with the organization‘s
goals and objectives.

InCred believe that there employees are our most valuable asset. InCred make an effort to
develop the abilities and productivity of our staff. InCred encourage a work culture, foster
relationship with them at every level in the organization and make them to express their
views and share their ideas to bring about improvements in the organization towards the
achievement of the common goal described in our vision and mission statements. InCred
employees take pride in their work as they are given due respect, and by being empathetic
and sensitive to each others needs. InCred make every endeavour to foster a productive
culture through out the Bank.

InCred is committed to providing a work environment that promotes, recognises and rewards
performance excellence of there employee. InCred provide healthy competition among its
employees for better development of employees with inn the organization.

InCred recognises that its future success continues to depend upon the capacity of their staff
and is committed to supporting the Company Performance review process with a fair and
equitable reward and recognition system. The Company aims to create a climate for
performance excellence at every level for individual and team performance. The Company
also recognises the need for supervisors and employees to discuss and negotiate possible
reward mechanisms both when planning performance expectations and during the
performance review as part of the process

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 Different policies of HR used by InCred:

 Policy that governs health and safety

Each workplace has defined obligations regards health concerns and safety at work. The
InCred policy involve regular workplace inspections and training of staff on safe work
practices.

 Protecting employee interests against workplace bullying and harassment

Workplace bullying and harassment need to be addressed with seriousness by employers.
Hence InCred policies that clearly define protection of employee interests at all times against
workplace harassment should be set by HR managers.

 Encourage diversity at workplace and avoid discrimination

The InCred employment policies outlined the human right laws to ensure that businesses
operate in a discrimination-free environment and employees from diverse backgrounds
coexist to support organisational endeavours. Also it should be ensured that employees are
not discriminated on the basis of race and equal opportunities for growth are provided to all.

 Comprehensive policy documents that clearly communicate employment benefits

InCred have comprehensive policy documents that clearly communicate benefits provided to
an employee such as salary, bonus, allowance, and incentives as per terms of contract of
employment.In addition to the productivity benefits outlined, InCred clearly state the hours of
work involved on job (on a weekly basis), vacation and paid time off; performance
management, compensation structure and promotions; general employee expectations
concerning appropriate conduct at workplace and confidentiality clauses.

 Termination Notice Policy

To protect employer‘s interests, InCred provide every employee termination notice and the
relieving formalities that meet the applicable statutory requirements and provisions of law
from time to time.

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 Overtime policy

It is important for employers to establish overtime rates in case of instances wherein the
employee has worked for extra man hours during the week; the employee is thus eligible for
an overtime monetary compensation in InCred. The process for obtaining prior approval to
work overtime is clearly stated and it must be consistent with employment standards
reinforced by the law and those of the employer.

Thus each HR policies of InCred will help to foster a culture of mutual growth to support
each other and meet larger business objectives.

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 LATEST NEW
1. InCred Expands Its Product Category, Adds Two-wheeler Loans to Its Portfolio:

This latest development from InCred is aimed at providing easy and convenient two-wheeler
loans to borrowers across its offices in 6 states, in line with its long-term vision to make
credit more accessible and available to a much larger segment of Indian consumers.
DATE:29 MARCH 2018
REFERENCE: http://bwdisrupt.businessworld.in/article/InCred-Expands-Its-Product-
Category-Adds-Two-wheeler-Loans-to-Its-Portfolio-/29-03-2018-144915

2. This NBFC startup has built a loan book worth Rs 100cr in just 2 months

This year, NBFC loans have grown at 16.6 percent, compared to 8.8 percent for the banking
sector. InCred has joined the party by disbursing loans worth Rs 100 crore in just two months
of its existence.

DATE: 6 JUNE 2017

REFERENCE: https://yourstory.com/2017/06/InCred-startup/

3.InCred aims to grow lending book to Rs 3,000 crore by March 2019:

InCred, the next generation technology-driven finance company, aims to grow its lending
book to Rs 3,000 crore by March 2019.Moreover, the company plans to achieve Rs 1,500
crore for its lending book by the fiscal-end itself, it said in a release today

DATE : 3 APRIL 2017

REFERENCE: : http://www.business-standard.com/article/companies/InCred-aims-to-grow-
lending-book-to-rs-3-000-crore-by-march-2019-117040300890_1.html

4. Five FinTech platforms to meet unaccounted expenses

InCred is a new-age financial services group that aspires to be the one stop shop for the
customers to fund their financial needs. The company endeavors to disrupt the status quo in
traditional lending that seems to exclude those most in need of credit, due to outdated, rigid,
and often inefficient processes. InCred offers a broad portfolio of products that cuts across
four key categories - Affordable housing loans, Education loans, SME loans and Consumer
loans.

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DATE: March 25, 2018

REFERENCE: http://www.business-standard.com/article/news-ani/five-fintech-platforms-to-
meet-unaccounted-expenses-118032500502_1.html

5. InCred disburses Rs 100 cr loans in less than 100 days of launch:

Financial services company InCred, which began operations in February 2017, has disbursed
Rs 100 crore loans to about 1000 customers in less than 100 days, according to a company
statement. InCred has disbursed loans across a broad range of ticket sizes from Rs. 50,000 to
Rs.10 crores.

DATE: 19 APRIL 2017

REFERNCE: https://www.thehindubusinessline.com/money-and-banking/InCred-disburses-
rs100-cr-loans-in-less-than-100-days-of-launch/article9650668.ece

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 EDUCATION LOAN OVERVIEW
 Education loan is becoming popular day by day because of rising fee structure of higher

education. It came into existence in 1995 started by SBI Bank and after that many banks
started offering student loan.
 Education loan products are based on country, level and stream of studies.

 It can be Secured (with full collateral), part-secured (with partial collateral) or unsecured (no

collateral), schemes which can be given under each product.

Every Education loan industry use GER(Gross Enrollment Ratio) to determine the ratio of the
number of students who live in that country to those who qualify for the particular grade
level. GER is calculated for the 18-23 years age group. It is total enrolment as a percentage of
the eligible population.

STUDENT MOBILITY IN OVERSEAS SECTOR

 Over 300,000 outbound students from India every year
 Grown by 100% inthe last 8 years.
 India‘s outbound student growth rate has surpassed the leading originator of foreign students
- China
 More than 25 million Indians have emigrated and currently reside in countries around the

world.
 Nearly 2.6 million of them live in the United States, forming the third largest immigrant

population there.
 Compared to the overall foreign- and native-born populations, native-born populations, the

U.S.-based Indian diaspora is younger, with higher levels of academic achievement, according
to.
 While more than 100,000 Indian students are enrolled in U.S. higher education, they are

primarily concentrated at the master‘s level in engineering related fields.

 In a new trend, Germany is emerging strongly as a favoured destination and could soon

overtake the UK as the most popular study destination in Europe for international students. In
2015 it attracted some 340,000 international students, compared to almost 450,000 in the UK.
 With the exception of the United Kingdom, student numbers from India to the United States,

Australia, Canada, New Zealand and Germany grew faster than overall overseas student
numbers to these destinations, according to the latest report by MM Advisory Services in New
Delhi.

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 The demand-supply factors contributing to this surge:
 Expansion of middle-class & upper middle class segments
 Difference in ‗Perceived‘ and ‗Actual‘ quality of education in India
 Decline of Chinese Dominance
 Immigration led outreach backed by high employment probability in US, Canada, NZ,
Australia, etc
 Advent of IB schools where students have to go abroad for undergraduate studies

 Govt & Policy focus on Gross Enrollment Ratio, Sarv Shiksha Abhiyan, Skill Enhancement,
etc.
 Holistic and Flexible Curriculum
 - Shortage of skilled workforce in US
 - Wider Research Option

INCRED APPROACH TOWARD EDUCATION LOAN:

Product brief:
InCred provides fully-customized and tailor-made loan products. The products and schemes
will be based on the quality of the course which student is going to
attend ,the profile of the student and also on co-applicant financial eligibility.
The Course/ Programs funded by InCred are:- Bachelors:B.E./B.Tech, B.Arch,
BDS,Masters:MS, MBA, PGDM, MBBS, MD and Executive Courses.
Around 80% of Student go for Masters ,15% for Bachelors ,5% for Certificate Courses.

 THE 3 PILLARS OF EL
Specialized Product Offering

The 3 pillar of education loan

Specialized product offering- pre-visa product, country and course linked product Service
oriented-Door step service and enablement. Underwriting and loan structuring-flexible
repayment options.

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 InCred Parameters for Loan Assessment
 Standardised Test Scores
 Academic Background - 10th, 12th, bacehlors, masters, backlogs, work-experience, extra-
curriculars, scholarships, internships, projects, resume
 Financial Profile of Co-Borrower
 Collateral - Unsecured upto 50 lacs*, collateral - property or FD
 Co-applicants - parents/ siblings/ spouse or 1st blood relative in InCred locations ; 1 co-
applicant to be salaried/ self-employed & other co-applicant can be retired/pensioner/rental
income
 Applicant/Co-applicant to be 18+
 Co-applicant can be Indian citizen / NRI - PIO (Person of Indian origin), OCI(Overseas
citizen of India)
 Negative List of Countries for program eligibility - Pakistan, Bangladesh, Sri Lanka, Iran,
Iraq, Syria and of the likes
 Operative Bank Account - To be an Indian Savings Bank Account of Main Co-Applicant for
disbursement of loan

DOCUMENTATION
 A)Education Loan application form
 B)Passport Size Pics - Both Student & Co-Signer
 C)KYC - Know Your Customer Documents - Both Student & Co-Signer
i.Students going abroad for higher studies must have passport
 D)Educational Documents from 10th, 12th, college (Bachelors) mark sheets, degree/diploma
copy+ GRE & TOEFL Scorecard + Additional Certificates+ admission letter + fee structure
+ student resume + work exp docs- Student only
 E)Financial Docs - Co-Signer only
i.Salary slips + banks statements + Form16/ITR - Salaried Co-signer
ii.Audited ITRs along with computation of income, P/L statement, Banks Statements,
Business Papers - SEP/SENP co-signer
 F)collateral documents.

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REPAYMENT TYPE:

Simple interest
Partial interest
EMI
Table 1
The time duration to pay the interest can be 10 years,12 years, or 15 years. Students with
good GRE score eligible for Partial interest, EMI is eligible if the student is going for
Bachelor‘s course and Simple interest in case of non-STEM courses.

COST OF EDUCATION LOAN

COUNTRY EXPENSES (TUTION +LIVING)
USA 30-40 lakhs
Canada, Ireland 10-20 lakhs
Germany 14 lakhs (for living tuition paid by government)
Other 15-20 lakhs
Table 2

STANDARDISED TEST SCORE FOR FOREIGN EDUCATION

TEST MINIMUM SCORE MAXMIUM SCORE
GRE 260 (verbal-130+quants-130) 340 (verbal 170+quants 170)
GMAT 200 800
IELTS 6.5 9
TOFEL 78 120
PTE 60 100
Table 3
GRE is for STEM courses, GMAT is for MBA but they can be interchangeable.

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INCRED PRODUCT STRUCTURE
EXAM SCORE LOAN AMOUNT INTEREST RATE
PRODUCT
MS-US 1(GRE) 305+ 25-40 12.25%
MS-US 2(GRE) 295-304 15-25 12.75%
MS-CANADA(GRE) 290-305 15-25 13%
MBA (GMAT) 690+ 15 13.5%
OTHER 10-12 14%
Table 4

OBJECTIVE:
1.To understand the overall process of providing overseas education loans.

2.To access the underwriting process of overseas education loans.

3.To identify the issues related to hold and decline of overseas education loans.

4.To gain knowledge of other sector related to overseas education loan (foreign exchange
process).

5.To understand the CIBIL report in a better way.

METHODLOGY:
Worked with the operation team to understand the operation and data management process
and CIBIL report.
OPERATION AND DATA MANAGEMENT:
1..Analyzing the different documents related to applicant-All the mark sheets of applicant
,backlogs, work experience, KYC, entrance test score and co-applicants- financial
document(banking statement Income proof , Business proof, ITR, Form 16 etc.)

2.After analyzing the documents next is to run the CIBIL (shows credit worthiness) of each
applicant and co-applicants given on the loan structure.

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 3. After getting the CIBIL score, the informations related to applicant and co-applicants need
to logged in.

CIBIL REPORT:

Credit Information Bureau (India) Limited, commonly known as CIBIL, is India‘s first Credit
Information Company or Credit Bureau. It maintains records of all credit-related activity of
individuals and companies including loans and credit cards . The records are submitted to
CIBIL™ by registered member banks and other financial institutions on a periodic (usually
monthly) basis. Based on this data, CIBIL™ issues a Credit Information Report or CIR
(commonly referred to as a credit report) and a credit score.

Credit score:It is a 3 digit numerical summary of your credit history. The value range from -1
to 900. -1 is the least score showing no loan is taken and 900 is the highest score showing
high credit worthiness. A score 700 and above is a good score .(annexture2)

Listed below are some of the factors that affect your credit score.

 Credit repayment history

 Credit utilization limit
 Multiple loan application.
 Loan servicing term.
 High percentage of unsecured loans.
 Not checking your credit report for mistakes.
 Increase in credit limit.
 Giving gaurantee for loan

Issue related to CIBIL score:

It might happen that the score which is shown by

CIBIL might be wrong, in such case, person can file
complaint against the CIBIL generate company. The
process of filing complaints is:

1.Person need to file the dispute online form.

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2.The field(loan) is which mistake is done need to be marked under dispute.
3.The dispute need to be concerned with the lender based on the type of dispute.
4. If the dispute is correct then changes are made, and dispute is removed from dispute field
under the particular section.
UNDERWRITING PROCEDURE:

Currently working with credit team to do the underwriting process.

1. Underwriting is the process of deciding what makes an applicant eligible for a loan, based
on factors including credit history and other considerations, such as income, debt, and
employment.

2. Each case is examined carefully to determine the ability of borrowers to pay the loan by
looking at credit scores academics of student, entrance score, banking norms and financial
status of the co-applicant.

3. Once a thorough analysis of each case is done next is to do Personal discussion(PD) with
the applicant or co-applicants to get a clear picture of information related to applicant and co-
applicant given in documents.

4.On the basis of different factors (academic record of applicant, work experience, income of
co-applicant, CIBIL score, any other obligation) the amount of loan and rate of interest is
determined

5.if the case is sanction, then the loan amount is disbursed at the time of disbursement time, if
it is hold then either it is sanction or decline and the, reasons for same are given, if it is
decline then reason for the same are given.

ROI ELIGIBILITY: (annexure 1)

Once underwriting is done next step is to determine the ROI eligibility. ROI determine the
rate of interest at which loan is given.

DISBURSEMENT: After working with the underwriting process the next step is
disbursement.
1.Once a loan is sanction it need to be disburse at the time of disbursement.

2.Post PD is required if it is not done at the time of underwriting process.

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2. Field investigation is done and loan sanction letter is required for disbursement of loan
amount.

FOREX PROCESS MANAGEMENT:

1.For disbursement of loan amount, the Indian rupee need to be convert into other county
currency in which student is going.

2.For this, InCred has tied up with Essel finance vkc forex limited and Centrum direct limited
for foreign exchange process.

LEARNING OUTCOME:

1.Help to know the rating of different universities in the world for different courses.

2. Better understanding of CIBIL report.

3.Working on different software to make lending quick, simple and hassle-free.

4.Analysising different case helps to know the different document required for the loans.

5.Got an idea about the bank from which we can take NACH ,the bank account having MOD
facilities and different account like cash credit , overdraft account from which NACH can‘t
be avail.

6. Understanding different account like NRI ,NRO and NRE

7.Gain knowledge about the market rate for overseas education loan and competitive
strategies used by competitors.

8.Grasp an idea about the entrance test score, its minimum and maximum requirement.

9.Got to know about STEM courses, pathway program and different level for different
program.

10.Gain knowledge of different education facilities in different countries like Erasmus

mundus( education loan facility in European countries for bright students).

11.Understanding LOS (Loan origination system) and LMS (loan management system).

12. Learn time management and handling work load in a better way.

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LIMITATIONS:

1.A new system is launched i.e. LOS which make the working quite slow as it is new to the
company.

2.More product is required for different countries and courses which are yet not categories.

3.The requirement of employees are more according to work load.

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 BIBLIOGRAPHY

 https://www.firstpost.com/business/incred-backed-by-anshu-jain-disburses-rs-100-crloans-

to-sme-housing-segments-3394682.html

 https://en.wikipedia.org/wiki/Non-bank_financial_institution

 http://www.InCredfinance.com/InCred-finance-blog/sme-loans/sme-loans

 https://www.investopedia.com/terms/e/education-loan.asp

 https://www.InCred.com/about-us.html

 https://www.InCred.com

 https://yourstory.com/2017/06/InCred-startup/

 https://www.vccircle.com/anshu-jain-backed-InCred-on-the-hunt-for-buyout-deals-togrow-

lending-biz/

 https://www.whizsky.com/2017/09/case-study-InCred-finance-made-lending-quicksimple/

 http://www.business-standard.com/article/companies/InCred-gets-anshu-jain-othertop-

investors-116082100610_1.html

 https://www.crowdfundinsider.com/2016/08/89515-mumbai-based-InCred-
financialsecures-

75m-funding-round-led-former-deutsche-bank-co-ceo/

 https://www.thehindubusinessline.com/money-and-banking/incred-disburses-rs100-

cr-loans-in-less-than-100-days-of-launch/article9650668.ece

 http://www.business-standard.com/article/companies/incred-aims-to-grow-lendingbook-

to-rs-3-000-crore-by-march-2019-117040300890_1.html

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 ANNEXURE

Annexure 1-

ROI Calculation

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Eligibility

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Annexure 2

When CIBIL is more than 700:

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