Thiruma Valavan A: 10 September 2022

Thiruma Valavan A
Deputy Director, IIBF

10th September 2022
email: thirumavalavan@iibf.org.in
Mob: 9585883789
INDIAN INSTITUTE OF BANKING & FINANCE

Introduction…
 Discussions…
 Expectations…
 Recent News…

Repo Rate…

Any further change expected…

In this session…
 Evolution of Retail Banking
 Characteristics of Retail Banking
 Definition (Regulatory) of Retail Banking
 Advantages and Constraints of Retail Banking
 Growth, Composition, NPA in Retail sector - Trends
 Process Flow: Pre-sanction & Post-sanction Stages
 Retail Loans – Education Loan-Interest Subsidy scheme.
 Retail Portfolio – Effect of COVID 19
 Challenges
 Success Mantra

EVOLUTION OF RETAIL BANKING
 Across the GLOBE, Retail Banking has been spectacular

innovation in commercial banking space.
 T h e growth of retail lending, especially, in emerging
economies, is attributable to the rapid advances in information
technology, the evolving macroeconomic environment,
financial market reform, and several micro-level demand and
supply side factors.
 India too experienced a surge in retail banking. During the 30
years after 1992, India’s economy grew at an average rate of 6.8
percent.
 The most visible face of Banking for the general public.

EVOLUTION OF RETAIL BANKING
In India the Retail Banking scenario has modified the market from
a seller’s market to a buyer’s market, which is also known as
consumer banking, comprises the services that a bank
offers to the general public.
It has been the focus of the banking industry across the world.
The innovation of new banking products, which cater to the
banking needs of individual customers, is the force behind the
constant growth of Retail Banking
Today’s retail banking sector is characterized by three
distinguished features :

3 basic characteristics:
Multiple Multiple
Multiple
Channels of Customers
Products
Distribution Group
Individual
Deposits Call Centre
Consumer
Small
Loans Branch
Business
Electronic &
Credit Cards Digital Corporate
channels
Internet &
Insurance
Mobile
Securities &
Investments

Retail - The near future – a Customer’s journey
Source: A.G. Lafley Chairman, President & CEO of Procter & Gamble

DEFINITION OF RETAIL LOANS (Regulatory)
 BASEL identifies 4 criteria for retail credit.
 RBI also has accepted these criteria
(RBI MC – Basel III Capital Regulations dated July 01,2015 read with RBI/2020-21/53 dated-Oct12,2020 )
 1. Amount criterion – Less than Rs. 7.5 crores to Individuals

 2. Granularity criterion - It should be well diversified. No
counterparty to be lent more than 0.2 % of total regulatory retail
portfolio.
 3. Products criterion - Simple and Structured products
 4. Orientation criterion- Exposure to a person, or to small
business where average annual turnover of the unit not to exceed
50 crores.

DEFINITION OF RETAIL LOANS
 Loans (including both fund-based and non-fund based) that
meet all the four criteria listed earlier may be considered as
retail claims for regulatory capital purposes and included in a
regulatory retail portfolio.
 Claims included in this portfolio shall be assigned a risk-weight
of 75 per cent s.t periodical evaluation by RBI.
 Banks must ensure that the regulatory retail portfolio is
sufficiently diversified to a degree that reduces the risks in the
portfolio.

Retail Credit comprise following broad types
Small Ticket Mixed ticket Big Ticket
• Loans to Individuals for • Loans for Business / • Loans to Prop/Part. Firms,

Personal Needs Professional Needs Cos for Business
• Home Loans, • Car loans for taxi use, • Vehicle Service Centers,
• Vehicle Loans, • Three Wheeler Loans • Loan Against Property,
• Edu. Loans, • for passenger / cargo • Lease Rental Discounting,
• Credit Cards, transport • Fleet of cars to companies.
• Pers. Loans, • Medical Equipment Loans,
• Consumer Durable Loans, • Office Equipment Loans,
• Gold / Jewelries Loans, • Other Equipment Loans.
• Loan Against FD/
• Property/Shares/Securities,
• Reverse mortgage loans.

GROWTH,COMPOSITION, NPA,STRESSED
ASSETS IN RETAIL LOANS
 WHAT DOES THE TRENDS INDICATE ?

Retail loans set to become largest
segment for Indian banking industry
*Source: Business Standard dated 30th March 2021 & RBI press release

DATA ON SECTORAL DEPLOYMENT OF BANK
CREDIT
 https://rbi.org.in/Scripts/Data_Sectoral_Deployment.aspx

RETAIL SUB DIVISIONS (Mar’2022)

Credit card market share in India

Sectoral Asset Quality Indicators

* https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=1209
REASONS FOR GROWTH IN RETAIL LOANS
 GROWING CONSUMERISM-
 OWN CAR, OWN HOUSE –STATUS SYMBOL
 FISCAL INCENTIVES- INCOME TAX BENEFITS,
 INTEREST SUBVENTION/SUBSIDY
 DEMOGRAPHY CHANGE – CHANGED MINDSET OF YOUNGER
POPULATION – FROM
 “SAVE NOW , BUY LATER” TO “BUY NOW, PAY LATER”.
 GROWING DISPOSABLE INCOME
 HIGHER ADAPTABILITY TO TECHNOLOGY
 DESIRE TO IMPROVE LIFESTYLE
 EASY AVAILABILITY OF CREDIT- CREDIT CARDS AND BANK CREDIT

RETAIL LOAN –vs- COMMERCIAL LOAN

RETAIL LENDING SUCCESS FORMULA

RETAIL LOAN PROESSING…
Obtain the
legal opinion
(wherever
applicable)
Process the Arrive at the from the
application. Credit Score. panel lawyer.
Do the Do the
verification valuation
checks. (wherever
applicable)
through the
panel valuer.

Arrive at the Advising the

quantum of sanction of the
finance based on loan to the
the margin Borrower/Branch
requirements for with the terms
different loans. and conditions.
Pricing of the loan Receiving

based on the Type acceptance for
of Loan/Credit the terms and
Score/Individual conditions from
Borrower/Group the applicant.
Borrowers.

Execution of
documents for the loan
and also completing
the mortgage
formalities wherever
applicable (any
mortgage backed retail
loans like Housing Verification of end use
Loans etc.). by the borrower.
Release of the loan Starting Monitoring &

to the borrower. follow-up

Retail Loan – Appraisal
Step- 2: Personal Discussion- Personal details like family background,

place of stay, financial assets owned by the family, details of relatives
source of margin, repayment ability etc.
Step- 3: Bank’s Field Investigations etc.
Technical
Feasibility
Economic
Viability
Bankability

• Decent living standard with some tangibles
LIVING
STANDARD like
CAR, T.V. & Fridge will provide assurance to
bank regarding your residential status.
• Presence of some undesirable elements like

LOCALITY
local goons or controversial areas adversely
TECHNICAL
affects your loan appraisal process.
FEASIBILITY
RETAIL
TELEPHONIC • At least one response is needed from person
LOANS – VERIFICATION to establish the identity of the person from
APPRAISAL contact point of view.
EDUCATIONAL • Not an essential barrier but essential to

QUALIFICATION understand the complex terms & conditions
of bank loan.
POLITICAL • Need cautious approach and tact to deal with.
INFLUENCE
• To establish the residential identity of person

REFERENCES
from human
INDIAN INSTITUTE OF contact
BANKING point of view & cross
& FINANCE
check of their other loans.
RETAIL LOANS – Appraisal…
INSTALMENT TO
INCOME RATIO (IIR) IIR for salaried cases would be capped at 60% of Net income in general.
-Pension Income cases IIR to be restricted to 40%
FIXED OBLIGATION TO
INCOME RATIO (FOIR) FIOR kept at 55%
ECONOMIC
VIABILITY LOAN TO VALUE / COST For Housing Loans – Irrespective of the Loan amount
RATIO (LTV OR LCR)
LTV Ratio <80 = RISK WEIGHT 35% ,
LTV Ratio >80 and <=90 - RISK WEIGHT 50%
( Ref : Circular no RBI/2020-21/56 dated 16.10.2020)
To check the average amount client is maintaining in the account is
BANK STATEMENTS
sufficient to pay the instalment amount or not.
BUSINESS CONTINUITY
To enquire primary source of income
PROOF
To check the general attitude of customer along with efforts are
CREDIT INTERVIEW
put in to understand their needs better.
BANKABILITY PROFILE OF CUSTOMER Secured source of income give them an edge
SECURITY To safeguard bank interest against any future default.
OWNERSHIP TITLE To establish the ownership claim of the loan applicant.
CIBIL REPORT Tool to check any default incidence in loaning history of applicant.

Case Studies on IIR & FOIR
IIR: This is used to calculate the loan eligibility of the customer. This
ratio denotes the portion of the customer's monthly instalment on
This stands the Loan taken.
for i. For Example: IIR is 60%
Instalment ii. Gross Income is Rs. 50,000/- per month
to Income
Ratio As per the IIR ratio, the customer is eligible for a loan where the
instalment does not exceed Rs. 30,000/-per month
(60% multiplied by Gross Monthly Income)
FOIR: This is used to calculate the repayment capacity of the customer.
For example: Income -Rs 40,000 pm
This stands Car loan instalment: Rs 8,000 pm
for Fixed Fridge loan instalment: Rs 2,000 pm
Obligation Proposed housing loan instalment: Rs 15,000 pm
to Income For Example, If the FOIR is 55 percent,
Ratio (55% multiplied by Gross Monthly Income) i.e. Rs 22,000.
As the borrower is already paying Rs 10,000 pm for car and fridge,

he has Rs 12,000 left and the loan would be calculated taking Rs
12,000 per monthINDIAN
as theINSTITUTE
housing loan
OF repayment
BANKING & capacity
FINANCEof the
customer. Accordingly the housing loan amount will get reduced.
RETAIL LOANS – FOLLOW UP ACTION…
Post Sanction-
STEP- 5 :Offer Letter
STEP 6 :Submission of legal documents
STEP 7 :Valuation
STEP 8 -Registration of property documents

STEP 9-Signing of agreements and submitting mandate for debiting
account (NACH)
STEP 10-CREATION OF SECURITY, REGISTRATION WITH CERSAI
STEP 11-Disbursement
MONITORING
 VERIFICATION OF END USE OF FUNDS
 MONITORING FOR REPAYMENT
 INSPECTION
 SARFAESI ACTION WHEN ACCOUNT BECOMES NPA.

ADVANTAGES OF RETAIL LOANS
 SIMPLE & STRUCTURED PRODUCT
 EASY TO UNDERSTAND & EASY TO ASSESS & PROCESS
 DIVERSIFICATION OF RISK
 LESS NPAS / STRESSED ASSETS
 LESS IMPACTED BY ECONOMIC DOWNTURN
 GOOD AVENUES FOR DEPLOYMENT OF FUNDS
 GROWTH DRIVERS OF CREDIT PORTFOLIO
 LEADS TO WIDENING OF CLIENTILE BASE
 CROSS SELLING OF PRODUCTS ENABLED
 CARRIES LESSER RISK WEIGHT UNDER BASEL REGIME
 HAVE A CASCADING EFFECT ON THE ECONOMY BY BOOSTING CONSUMPTION
 STABILITY IN THE LOAN PORTFOLIO
 LONG TERM CUSTOMERS ACQUISITION
 PRIORITY SECTOR TARGETS
DISADVANTAGES OF RETAIL LOANS
 RATE OF INTEREST IS VERY LOW
 CAN’T LINK PRICING TO RISK RATING – CAN’T INCREASE INTEREST RATE
 CUT THROAT COMPETITION AMONG BANKS LEADING TO WAIVER OF
PROCESSING CHARGES
 COST OF HANDLING CUSTOMERS IS LARGE
 SMALL TICKET SIZE LEADS TO UNECONOMICAL ALLOCATION OF MAN
POWER RESOURCES
 HIGH DELINQUENCIES IN CREDIT CARD/ UNSECURED LOANS
 INCREASING INCIDENCE OF FRAUD IN RETAIL LOAN ACCOUNTS

PRIORITY SECTOR CLASSIFICATION –
RETAIL LOANS
HOUSING :
 Metro Cities - Rs 35 Lakhs (Cost of dwelling unit up to Rs 45 Lakhs )
 Other Places - Rs 25 Lakhs (Cost of dwelling unit up to Rs 30 Lakhs )
 (No Staff Loans)
 Repairs Up to Rs 10 Lakhs(Metro) and Up To Rs.6 Lakhs (Other Places ).
 Loans To Government Agency For Houses For (Slum Clearance/
Rehabilitation) with carpet area not more than 60 sq meter.
 Bank loans for affordable housing projects using at least 50% of FAR
(Floor Area Ratio)/FSI (Floor Space Index)for dwelling units with
carpet area of not more than 60 sq.m.
 HFCs For On-lending For Houses For Slum Clearance And Rehabilitation
Cost Rs 20 Lakhs per borrower.
PRIORITY SECTOR CLASSIFICATION – RETAIL
LOANS
EDUCATION :
 Loans To Individuals Including Vocational Courses upto

Rs 20 Lakhs Irrespective Of The Sanctioned Amount.

TYPES OF HOUSING LOANS

Education Loan Subsidies…



Comparison chart

Car Loan

Personal
Loan

Latest updates….
 Credit Card Segment…
 In recovery of dues…
 Tokenization…
 https://m.rbi.org.in/Scripts/FAQView.aspx?Id=129
 https://www.rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=20814
 https://www.rbi.org.in/scripts/FS_PressRelease.aspx?prid=53877&fn=9

What is tokenization…

Preventive Vigilance
 The KYC guidelines should be meticulously complied with, which include proper
verification & cross checking of information submitted by the applicants for their
identity. Noting for having verified with the originals should be made on the
documents and kept on record.
 The Pre-sanction inspection including visit to the place of residence and place of
work as well as property to be purchased, must be carried out independently,
preferably without giving prior information to the applicant.
 Independent enquiries from the employer in respect of salaried person about
employment status and salary should be made. A copy of latest salary slip should be
obtained. Critical examination and satisfaction about the “Employment Status” of the
applicant, his/her/their source, continuity, consistency and sustainability of the
income is very essential. Income of the applicants should be of regular, stable and
verifiable nature.
 In case of applicants other than salaried persons, the original taxpayer’s copy of
challans of tax deposited is verified to ascertain genuineness of Income Tax Returns
and also the assessment orders for earlier years. Home Loan proposals of the persons,
who have filed their income tax returns of last three years in one lot or if there is
major fluctuation in the amount of the tax deposited in the current year vis-a-vis
previous year should be accorded special attention.
Preventive Vigilance
 Some Banks have introduced a system for outsourcing Chartered Accountants for
verification of income related papers viz. IT Returns, Income Tax Challans etc.
 Credit Bureau Report and CERSAI search report in respect of applicants/
guarantor/s should be meticulously verified.
 Credit Rating ( Internal) in prescribed module relevant to the retail loan proposal
should be carried out in each case before taking credit decision.
 Overvaluation of the property to avail higher than eligible amount of loan.
 Forged Title documents – Coloured photocopies title documents are produced,
fake Stamp Papers ..which are difficult to distinguish. Certificate from panelled
Advocate as to the genuineness of the title deeds should be obtained and kept on
record. Multiple Finances from different Banks
 The branches should in writing ascertain from the builder / vendor/ supplier the
details of his Bank, Branch and account number for the purpose of making
payment on disbursement of the loan amount directly to him. It has been
observed that miscreants generally opened accounts with small co-operative
banks for fraudulent encashment of the banker’s cheques.

Preventive Vigilance – Studies Abroad
Without VISA
Sanction may be accorded prior to submission of Form I-20/ or its

equivalent in other countries, if demanded by the Foreign
Institution/ University/ VISA issuing authorities. However, the
disbursement to be done only after the submission on Form I –
20/ or its equivalent in other countries.

The learnings after Covid Pandemic

Retail Lending operations under
COVID-19 environment

1
Change in operating
Implications for lenders
environment for lenders?
 Realignment of operations
Potential impact on growth of in line with Govt
Retail Credit ? guidelines.
3
 Keep the momentum of
Likely impact on Asset growth with good assets .
Quality?
 Greater focus on greater
Risk Management

Retail Lending operations in COVID-19 environment
 Changes in Operating Environment:-

 COVID 19 has affected more than 60.80 crore people across the globe out
of which more than 65.10 lakh death cases so far (as on 09-09-2022).
 In an average 5.10 lakh people are affected (2200 death) in a day.
 The number of people affected in India is more than 4.45 crores.
 The total death in India due to COVID is around 5.28 lakh now.
 The pandemic has serious social economic and financial fallouts.
 Enormous instances of job losses (daily wage earners / migrant laborers.)
 Substantial negative impact on consumers’ financial position on account
of pay cuts / lay-offs.
• Sources: https://www.bing.com/search?q=covid+dashboard+world&qs=MT&pq=covid+dashboard&sk=LS1SS2AS1MT1&sc=8-
15&cvid=B6FEC66F638142609F175CD03C046F7D&FORM=QBRE&sp=6
Positive note on Covid 19*
Posted On: 10 SEP 2022 9:36AM by PIB Delhi
 214.77 cr Total Vaccine doses (94.48 cr Second Dose and 17.92 cr Precaution Dose)
have been administered so far under Nationwide Vaccination Drive
 21,63,811 doses administered in last 24 hours
 India's Active caseload currently stands at 48,850
 Active cases stand at 0.11%
 Recovery Rate currently at 98.7%
 6,322 recoveries in the last 24 hours increases Total Recoveries to 4,39,13,294
 5,554 new cases recorded in the last 24 hours
 Daily positivity rate (1.47%)
 Weekly Positivity Rate (1.80%)
 88.90 cr Total Tests conducted so far; 3,76,855 tests conducted in the last 24 hours
• Sources: https://pib.gov.in/PressReleasePage.aspx?PRID=1858206
India’s economic growth is expected to contract in 2020
Growth in Real GDP

GDP Actual GDP Forecast (pre COVID-19) GDP Forecast (post COVID-19)
12%
8.7%
YoY Growth Rate
7.5% 6.2%
8% 5.6%
4.1%
4%
~INR 24 1.1%
0%
trillion
-4% (current
prices)
-8%
-12%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020
India’s GDP estimates have been revised for FY18, FY19 and FY20 Source: Oxford Economics

India’s economic growth actual in 2020

• Sources: https://pib.gov.in/PressReleasePage.aspx?PRID=1750782
India’s economic growth is expected to contract in 2021
*Source: 1st Advanced estimate; Source: MOSPI & CMIE dated 26.01.2021
Estimated quarterly impact from COVID-19 on
India's GDP FY 2020-2021
*Source: Published by Statista Research Department, Apr 19, 2021

Growth expected…

Growth expected…

Retail Lending operations under COVID-19…
 Potential impact on growth of Retail Credit: -
 Growth in Retail Credit has been subdued during last two Financial Years.
 Credit growth is a function of demand and supply (willingness of lenders to approve new
organizations)
 Inquiry with CICs (CIBIL, High Mark, Experian) and new origination declined by about 50%
yoy basis during initial months of pandemic. Some green shoots are now visible from the
data.
 Decline in discretionary spending coupled with reduced affordability is likely to affect the
demand side of Home Loan, Car loan segments.
 Demand for Credit Cards and Personal Loan will continue as the customers’ require funds
to bridge their personal finance gap.
 Greater element of Risks perceived in Personal Loans, lower approval is expected for
those products.
 Liquidity in banking system is not affected in view of Rate cuts and other fiscal incentives
by GoI / Regulator.
 However, Bankers will realign their credit policy with better risk mitigation techniques,
improved selection norms.
Retail Lending operations under COVID-19…
 Likely impact on Asset Quality?
 i. Determining the impact on asset quality involves complex function of payment
hierarchy by consumers, collection management practices of lenders , new
delinquency rate, credit scores.
 ii. Surveys have been conducted by Credit Rating Companies / CICs to study the
impact of COVID 19 on Asset Quality.
 iii. Regulators have notified Resolution plan for Personal Loan segment taking a
note of asset quality drift.
 iv. In accordance with the studies carried out –
 Personal loans and Credit Cards repayments may reflect higher delinquencies.
 Home and Auto loan will have lower impact.
 Rate of delinquencies will be increased.
 Lenders to strengthen collection management practices,
 Greater monitoring and analytic based risk mitigation.
What changed in this New Normal
Realignment of Selective Fresh Focus on Risk

operations Lending Strategy Management
Infr a
 Realigning operations in  Differentiated  Use of data analytics

branches/offices to comply with approach in loan in new approval
Govt guidelines of social origination e.g
distancing / wearing face masks
 Review and
priority of home loan strengthen
etc.
over personal loan. Collection
 Adjusting working hours, staffing Auto loan over credit
mix and times to avoid infection Management
card practices.
 On boarding customers to Digital
Banking Platform with user  Evaluate partnership  Meticulous
friendly innovative products. models(collaborative monitoring of
 Enabling online sanction and lending / co- portfolio using EWS
disbursement of loans origination with indicators
 Extending temporary relief to Fintech Cos)  Collection
customers within regulatory  Leverage on digital prioritization models
frame work / dispensation. sourcing channels to maximize
 Automation of process flows. INDIAN INSTITUTE OF BANKING & recoveries
FINANCE
CHALLENGES IN RETAIL BANKING
 Retention of customers: According to a research by Reichheld and Sasser in the

Harvard Business Review, 5 per cent increase in customer retention can increase
profitability by 35 per cent in banking business, and 125 per cent in the consumer
credit card market.
 Rising indebtedness: India's position, of course, is not comparable to that of the

developed world where household debt as a proportion of disposable income is
much higher. Such a scenario creates high uncertainty.
 Network management challenges: Network management challenges, whereby

keeping these complex, distributed networks and applications operating properly is
essential. Ensuring that account transaction applications run efficiently and safely
between the branch offices and data centres.
 Money laundering: KYC Issues and money laundering risks in retail banking is yet
another important issue. Retail lending is often regarded as a low risk area for money
laundering because of the perception of the sums involved. However, competition for
clients may also lead to KYC procedures being waived in the bid for new business.
SUCCESS MANTRA FOR RETAIL PORTFOLIO
 Need for constant innovation-Product development

and differentiation , innovation and business
process re-engineering
 Prudent pricing
 Proper marketing / sourcing of credit
 Internal Vs external source
 Promise vs delivery - TAT norms to be faster
 After sale service to should be of SUPERIOR quality
 Grievance redressal system to be prompt and effective
 Technological up-gradation, cost reduction
 cross-selling & up-selling

Co-lending

* https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11991&Mode=0
In this session…
 Evolution of Retail Banking
 Characteristics of Retail Banking
 Definition (Regulatory) of Retail Banking
 Advantages and Constraints of Retail Banking
 Growth, Composition, NPA in Retail sector - Trends
 Process Flow: Pre-sanction & Post-sanction Stages
 Retail Loans – PMAY / Education Loan-Interest Subsidy scheme.
 Retail Portfolio – Effect of COVID 19
 Important RBI guidelines on Retail Loans
 Challenges
 Success Mantra

Any Questions?

Thank you…

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Thiruma Valavan A

Deputy Director, IIBF

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

 Across the GLOBE, Retail Banking has been spectacular

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

 1. Amount criterion – Less than Rs. 7.5 crores to Individuals

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

Small Ticket Mixed ticket Big Ticket

• Loans to Individuals for • Loans for Business / • Loans to Prop/Part. Firms,

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

Arrive at the Advising the

Pricing of the loan Receiving

INDIAN INSTITUTE OF BANKING & FINANCE

Release of the loan Starting Monitoring &

INDIAN INSTITUTE OF BANKING & FINANCE

Step- 2: Personal Discussion- Personal details like family background,

Step- 3: Bank’s Field Investigations etc.

INDIAN INSTITUTE OF BANKING & FINANCE

• Presence of some undesirable elements like

EDUCATIONAL • Not an essential barrier but essential to

• To establish the residential identity of person

INDIAN INSTITUTE OF BANKING & FINANCE

As the borrower is already paying Rs 10,000 pm for car and fridge,

STEP 8 -Registration of property documents

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

 Loans To Individuals Including Vocational Courses upto

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

INDIAN INSTITUTE OF BANKING & FINANCE

Sanction may be accorded prior to submission of Form I-20/ or its