Sl no Particulars KRA

Loan Application Processing Process loan applications within a

1
Time specified timeframe (Time:24 hours)

Ensure accurate credit assessments to

2 Credit Assessment Accuracy
minimize default risk.
 Maintain a healthy loan portfolio with a
3 Portfolio Quality
low level of delinquency.

Ensure all loan documentation and

4 Compliance and Documentation processes comply with regulatory
requirements.
 Ensure accurate disbursement of
5 Loan Disbursement Accuracy
approved loans

6 PDV tracking Timely Post Disbursement Visits

7 PDV tracking Documentation and Reporting

8 PDV tracking Portfolio Quality

10 PDV tracking Compliance with Regulations

11 LAR reports Accuracy of LAR Information

12 LAR reports Documentation Compliance

13 LAR reports Monitoring and Reporting
Measurement Threshold limit

95% of loan applications should be

Calculate the average time taken to
processed within the specified
process loan applications.
timeframe.

Monitor the percentage of loans

approved that subsequently become Keep non-performing loans below 5%
non-performing.
Track the Portfolio at Risk (PAR) ratio
Keep PAR ratio within 3%
PAR 30 to assess portfolio quality.

Regularly audit loan files for Maintain a compliance rate of 95% or

compliance. higher
Track the percentage of loans disbursed Maintain a disbursement accuracy rate of
correctly 98% or higher

At least 25%will have to be visited in

Percentage of regular accounts visited every quarter. Over a period of 4 quarter
within the specified timeframe. in a year, all groups should be viisted
atleast once

Timeliness and completeness of visit 100% of visit reports submitted within 48

reports. hours of the visit in the system

Reduction in delinquency rates and

non-performing assets (NPAs) as a Aim for a steady decrease in delinquency
result of effective post disbursement rates and NPAs.
visits.

Adherence to regulatory requirements Maintain 100% compliance with all

during post disbursement visits. applicable regulations.

Percentage of loan acknowledgment

Maintain an average accuracy rate of at
receipts with accurate account and
least 95%.
transaction details.

Adherence to documentation and

Maintain 100% compliance with
record-keeping standards for loan
documentation standards.
acknowledgment receipts.
 Submit accurate reports within the
Accuracy and timeliness of reporting on
specified timeframe (e.g., weekly or
loan acknowledgment receipts.
monthly).
Tolerance level Score card

95% or more of loan applications are

Low.
Tolerance for Deviation: The goal is to
process the majority of loan applications processing timeframe, with some delays-
within the specified timeframe, with
minimal deviations.
consistently processed within the
specified 24-hour timeframe- 5 scores
Occasional minor deviations from the
processing timeframe, but generally on
track- 4 scores
Frequent minor deviations from the
3 scores
Significant deviations from the
processing timeframe, indicating
timeliness challenges- 2 scores
Consistent and significant delays in loan
application processing, requiring
immediate attention- 1 score

Non-performing loans consistently

maintained below the specified threshold
percentage-5 scores
Occasional minor deviations from the
threshold, but generally low non-
Low. performing loans- 4 scores
Tolerance for Deviation: The goal is to Frequent minor deviations from the
maintain a low percentage of non- threshold, with some challenges in credit
performing loans, and deviations should assessment accuracy- 3 scores
be minimized. Significant deviations from the threshold,
indicating credit assessment accuracy
challenges-2 scores
Consistent and significant levels of non-
performing loans, requiring immediate
attention- 1 scores
 PAR ratio consistently maintained within
industry standards with minimal
deviations(PAR % maintained <=1%)- 5
score
Occasional minor deviations from
industry standards, but generally low
PAR ratio with 1to 2%-4 Scores
Low. Frequent minor deviations from industry
Tolerance for Deviation: The goal is to standards, with some challenges in
maintain a low PAR ratio within industry portfolio quality with the PAR%
standards, with minimal deviations. mainained with 3 to 4 %-3 scores
Significant deviations from industry
standards, indicating portfolio quality
challenges with PAR% maintained with 4
to 5%-2 scores
Consistent and significant PAR ratio
above industry standards, requiring
immediate attention with >5%-1 scores

Compliance rate consistently maintained

at 95% or higher, with minimal deviations
from regulatory requirements- 5 scores
Occasional minor deviations from
compliance, but generally high levels of
compliance- 4 scores
Low.
Frequent minor deviations from
Tolerance for Deviation: The goal is to
compliance, with some compliance
maintain a high level of compliance with
challenges- 3 scores
regulatory requirements, and deviations
Significant deviations from compliance,
should be minimized.
indicating compliance challenges- 2
scores
Consistent and significant non-
compliance with regulatory
requirements, requiring immediate
attention- 1 scores
 Loan disbursements are consistently
accurate, with a rate of 98% or higher- 5
scores
Occasional minor deviations in loan
disbursement accuracy, but generally
Low. accurate- 4 scores
Tolerance for Deviation: The goal is to Frequent minor deviations in loan
maintain a high level of accuracy in loan disbursement accuracy, with some
disbursement, and deviations should be accuracy challenges-3 scores
minimized. Significant deviations in loan
disbursement accuracy, indicating
accuracy challenges- 2 scores
Consistent and significant inaccuracies in
loan disbursement, requiring immediate
attention- 1 scores

Moderate.
Acheving 25% or higher-05; Acheving 20
Tolerance for deviation: The goal is to
to 24%-4; Acheving 15 to 19%-3;Acheving
maintain a higher Level of PDV and
10 to 14%-2;Acheving below10%-1
deviation should be minimized

Moderate.
Entering 100% PDV data in system-
Tolerance for deviation: The goal is to
5;Entering 95%-99% PDV data-4;Entering
maintain a high level of accuracy in
90%-94% PDV data-3;Entering 85%-89%
entering the PDV data and deviation
PDV data-2;Entering <85% PDV data-1
should be minimized

Low. Steady decrease-5;Minor increase-

Tolerance for deviation: The goal is to 4;Moderate increase-3;significant
maintain a Low level of NPA increase-2;substantial increase-1

Low.
Tolerance for deviation:the goal is to >=100%-5;98-99%-4;95-97%-3;90-94%-
maintain higher level of complaince on 2;<90%-1
PDV visits

Low.
>=98%-5;95-97%-4;90-94%-3;87-89%-
Tolerance for deviation: The goal is to
2;<86%-1
maintain the higher lvel of LAR

Low.
Tolerance for deviation:the goal is to 100%-5;98-99%-4;95-97%-3;90-94%-
maintain higher level of complaince on 2;<90%-1
documentation

Low.
Tolerance for Deviation: Minimal
tolerance for inaccuracies in
documentation. The goal is to
consistently maintain accurate and
complete records.
Consistently maintain a documentation
accuracy rate of 98% or higher-
5;Occasionally experience minor
deviations from accuracy but generally
maintain high standards-4;Frequently
experience inaccuracies in
documentation, indicating areas for
improvement-3;Struggle to maintain
accurate records, with significant
deviations-2;Consistently fail to maintain
accurate records, indicating a critical
need for improvements in
documentation processes-1
Mitigation

Regularly review the workflow to identify

bottlenecks and streamline processes

Monitor the percentage of loans approved

that subsequently become non-performing.
Monitor the percentage of loans approved
that subsequently comes under PAR 30.

Update Policies as per regulatory changes to

staff
Implement a double-check system before
disbursement

Implement a tracking system with PDV

automate report submission processes

where possible.

analyze the impact of post disbursement

visits on portfolio quality and make necessary
adjustments.

Mitigation Conduct regular compliance

audits and provide staff with ongoing
compliance training.

Conduct periodic audits of receipt data to

identify and rectify errors.

Provide regular training and update staff on

documentation requirements. Conduct
periodic compliance audits.
Implement a reporting system with built-in
checks for accuracy. Ensure staff are trained
in report generation.