Professional Documents
Culture Documents
DSA Business Loans Policy
DSA Business Loans Policy
Policy
**This policy is subject to change by BFL on periodical basis. Please refer to your relationship
manager for latest policy updates
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Policy Norms: Customer Segmentation
Basis our risk policy, customers are segmented into different categories :
SUPER WOW
WOW
WOW-LITE
NORMAL
The differentiation allows waivers in the policy and documentation for higher
segmented customers, as they feature less probability of EMI bounce.
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Types of customers
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Self Employed Non Professionals are business profiles which do not have professional
degree to support their business profiles. As compared to Self Employed Professionals, the
businesses are little complex with varied transactions.
MANUFACTURERS :
These profiles are noted by the manufacturing units where they process raw materials to get
finished goods.
The profile is noted by machinery setups to process the goods
The financial statements are designated with labor costs, debtors and creditors
The margins are the business are high as goods are processed into new products
These profiles file VAT returns on periodical basis to note the amount of taxation applicable
to them.
TRADERS :
These profiles are noted by the godowns, storage space and inventory where products are
traded without any value addition.
The profile is noted by huge inventories and storage space
The financial statements are designated with debtors, creditors and inventory.
The margins are the business are low as compared to manufacturers.
These profiles file VAT returns on periodical basis to note the amount of taxation applicable
to them.
SERVICE PROVIDERS :
These profiles are noted by the specialized individuals who provide support services like
maintenance.
The margins vary from service to service The financial statements are designated with
service receipts with low cost of goods purchased.
These profiles file service tax returns on periodical basis to note the amount of taxation
applicable to them.
Basic Features of
Unsecured Business Loans
No security or collateral taken against loan
Comparatively small ticket size loans maximum up to 45 lakhs
Assessment done basis financials of business to check on repayment capacity of individual
Short term Loans maximum up to 5 years
Comparatively high risk as no collateral is taken, hence high ROI charged on these loans
Basically taken by businesses to meet short term requirements like working capital gaps due to
debtors and creditors cycle
Preapproved loan offers
Part prepayment facility
Foreclosure facility
Flexi facility
Online account access
Customized insurance protection cover schemes
NIL charges for loan statement, repayment schedules and interest and principal statements
Common MCP checks
DEMOGRAPHIC CHECKS
• Business profile of customer – Manufacturer/ Trader/ Service
• Ownership proof – At least one owned property (office/ residence) at the location.
• Fixed asset base – list of all owned properties – to check net worth of customer
• References - Blogs/ Newspapers publications/ other connections/ Linked in profiles – for more detailed
profiling of the customer.
FINANCIAL CHECKS
• Turnover / Receipts (Prof profiles) / PBT/ Income details of last 2 years
No financial loss ((Dep+ PAT) < 0) making company can be given loan
Dip in TO/ Profit not to be more than 20%
Minimum TO required 1 Cr – Mfg. / 1.5 Cr (for others)
• Sources of income – Professional/ rental/ other company associations. – this is not an MCP criteria, but
need to be checked to estimate cash inflow/ working capital gap for the customer.
• Actual / Estimated source of income – including cash earnings – Most of the income tax returns in India as
per trends are deflated to show low income and prevent tax implications. The business model should be
understood for the customer to cover this gap.
• Other investments/ insurances. This should be checked. If customer is not sufficiently covered on his
financial obligations, the same need to be suggested through cross-sell products
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Policy Norms: MCP Parameters
Parameters Policy Norms
Customer profile Only SENP
Property Ownership Either of residence or office to be owned at any of BFL locations.
With effect from 2nd Nov’16, For Top 15 Markets, sourcing under Turnover Band of 1 to 3 Crs
are allowed under Top 3 segments (Super Wow, Wow and Wow Lite)
for sourcing with below norms:
Turnover (Current
Year) Locations Business Capping
Mumbai Monthly Business to be capped at 2 Crs
Bangalore, Hyderabad, Ahmedabad, Chennai, Monthly business to be capped at 20% of
Kolkata, Chandigarh, Ludhiana & Pune location volume levels
Surat, Jaipur & Nagpur Monthly business to be capped at 20% of
location volume levels
Maximum funding to Trader profile under T/O 1-3 Crs to be restricted at 12 lacs
irrespective of loan amount stamping
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Policy Norms: MCP Parameters
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Policy Norms: Income Programs
Tenor Capping
CIBIL CIBIL Score of 0/-1 is allowed under Income program W.E.F. 16th Jan 2017 for specific locations only
with below mentioned conditions:
OD/CC utilization is <=95%
Minimum OD/CC Limit of the applicant needs to be Rs. 6 Lacs.
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Policy Norms: Income Programs
Constitution Norms
Partnership/ Private Partner/ Director who is managing the business should be the Primary
Primary Ltd. Public Ltd/ LLP Financial applicant
Financial co-
Proprietorship Proprietor to be Primary Financial co-applicant
applicant
Exception to above :
In case of Proprietorship firm, where wife is Applicant, husband to be
taken as Primary Financial applicant and wife as co-applicant.
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Policy Norms – Income Program
Nil EMI bounce allowed in available banking (technical 1 EMI bounce allowed in available banking (technical bounce
EMI bounce
bounce to be ignored) to be ignored)
Clubbing of financials for proprietorship/entity is allowed within immediate family member’s firms which are in same
line of business (Manufacturer/Trader/Services).
Clubbing (Loan Clubbing only allowed on audited financials.
Structure) Immediate family = Self/parents/spouse/Son/Daughter-in-law/Real Brothers
Where clubbing is done proprietor/partner of second entity will be added as co applicant at credit stage, along with
the entity.
Maximum customer level obligations allowed is 35% of Turnover of current audited year. i.e. (EMI *12) cannot be
Max obligations
greater than 35% of the turnover
Emerging markets are all the Tier II/spoke locations which have not completed 18 month/12 months.
Once these markets complete 18 months/12 months, they are to be treated as other Tier II cities post
Emerging Market
communication received from Risk team.
Location Cap- 25 lacs
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Policy Norms : Top up
Customer will be eligible for Top up post completing following MOB as per tenure:
Additional Conditions:
18
Documentation Norms
Category SW W WL N/LSO
Balance Sheet Balance Sheet 1st Page Balance sheet with Annexure
Profit & Loss Profit & Loss 1st Page Profit & Loss with annexure
1 month 2 months
Total of Banking Total of Banking credits >= 70% of Turn Over and
NA
Credits 70% of EMI through banking to be documented
Service tax
Latest 1 quarter Service tax challan/return to be taken
return
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Group Exposure norms
To Proprietorship concerns where spouses or son or unmarried daughter or brother or unmarried sister or father or
mother are proprietors of two different concerns.
Individuals who have a proprietary concern and has a >=25 % share in Partnership firm / Companies.
Entities which have interconnected holdings. For ex: Proprietor A holds >=25% share in a company along with B
who also holds >=25% share in this company and B is a >= 25% stake holding partner in a partnership firm along
with C. In such a case total exposure to the Proprietorship firm, Pvt Ltd company and Partnership firm cannot
exceed group exposure norms as capped above.
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Not to be Sourced profiles (NTS)
Sr. No. Profile
1 Politicians/Politically exposed Persons
2 Advocates
3 Police & their immediate Relatives (Parents, Spouse, Sibling, Children)
4 DSA/Sub DSA/Agent Emp
5 Financiers/Chit-fund/Nidhi/Plantation Time-share Com
6 Exclusive Bar/Permit Room/Liquor Wine-shop Owners
7 Astrologers & Marriage Consultants
8 Press & Media Journalists
9 Artists from film industry
10 Collection Agencies - Owners & Agents
11 Security Agencies supplying armed guards
12 Shared Accommodation/Paying Guest/Hostel/Sublet Accommodations
13 Commission Agents (without separate off set up)/Lottery Agents/RTO Brokers/ Used Car Dealers
14 Home Boutiques with no showroom set-up
15 Cyber-cafes/Video parlors Owners
16 Brick Kiln manufacturers
17 Gyms & Health Clubs
18 Plantations
19 Owners of Multilevel marketing companies
20 Car brokers
21 Real Estate brokers & developers
22 Foreign nationals
23 Share brokers / Employees of stock broking organizations
24 RTO Agents
25 STD/ISD/PCO Booth Owners
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Not to be Sourced profiles (NTS) continue..
Sr. No. Profile
26 Cable TV Owners
27 Verification Agency Owners
28 Mess Owners
29 Home Tutors/Tuitions/Education Institute
30 Driving Schools
31 Beauty Parlors
32 Builders
33 Any profile related to Aviation Industry
34 Travel Agent (non IATA approved)
35 Jewelers
36 Shipping and allied activities
37 Telecom Sector
38 Contractors (Govt.)
39 Garment showrooms profile in Delhi
40 Coal Traders- applicable for D2C businesses.
41 Single brand mobile handset dealers
42 Non Branded Edible Oil
43 Transporters, C&F, Logistics
44 Mining & Quarrying
45 Skin Care /Beauty Treatment / Hair Loss Treatment Clinic
46 Physiotherapist (without professional qualification)
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Income Tax Return
based Product: Policy Norms
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ITR – Policy Norms
Customer should be new to BFL, should not have availed any loan from BFL (CD
Eligible customer
& PLCS are allowed)
PD Norms Physical PD
Tenor 12 to 36 months
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ITR – Policy Norms
1. Average of last two-year income, ITR income of CY to be more than or equal to PY income.
2. Minimum gap between two ITR to be 6 months and maximum 18 months.
3. Latest ITR to be filed at least a quarter earlier than the loan application date.
4. ITR verification to be mandatory.
Additional Norms 5. No dip in Income as per ITR in last 2 years.
6. 3 months’ bank statement (Entity) to be documented.
7. Physical PD by ACM to be mandatory at office and CPV to be done at residence.
8. Other policy norms to continue, as per current BL policy.
9. Maximum loan amount cap - Rs.10 lacs.
Locations Norms
Asansol/Alwar/Ajmer/
Deoghar/Dhanbad/Guwahati/ Minimum Income from Business &
Ottappalam/Thiruvalla/Tirur/Ranchi/ Profession to Rs. 2.5 lacs for both years
Rourkela/Sagar/Solan/Sriganganagar/Valsad
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Repayment Track Record
based Product : Policy Norms
26
RTR – Policy Norms
PD Norms Physical PD
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RTR – Policy Norms
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