WES BEN - Business Loan Product Process
I. Basic Eligibility Criteria
1 Enrollment Criteria
2 Co-Borrower Criteria
3 Basic Eligibility
4 Credit Bureau Check to be
done for Borrower/Co
Borrower
/Spouse/Guarantor for
existing customers
For availing Personal loan, the applicant should be an
entrepreneur enrolled with Wes ben.
It is mandatory to have a Co borrower in the loan agreement.
The following relationship only qualifies to be a co-borrower.
 Applicant & Spouse.
 Applicant & Father / Applicant & Son.
Applicant & Mother
1. The customer should be running the same business for at
least 2 years. Exceptions can be processed as per deviation
matrix provided.
2. The customer should own a residential, shop, property,
working in the branch service area. The ownership can be in
the name of the customer / spouse / parents. 3.
3. Either the customer or spouse should have completed two
cycle track with us or any other NBFC or Bank.
4. The business shall be run in a permanent building with
RCC/Tiled/Sheet roof. Exceptions can be processed as per
deviation matrix provided.
5. Business Loan can be extended for home-based business and
service related activities/industries.
6. There should not be any current overdue in the loan track of
the Applicant / Co applicant.
7. The residence should be within the same service area of the
Branch and the shop can be located within the same Wes Ben
limits. The residence or shop premises should be owned by
the customer / spouse / Parents and the customer shall
submit the property document as additional collateral
(Original copies/Xerox copies).
8. New customers / customers with shop of temporary /
makeshift structures, thatched roof and business done on
pushcart.
Highmark Combo report to be extracted for all the loans. In
case of any lack of information in Highmark Combo report CIBIL
report to be extracted.
Customers should have no default with loans from any other
MFIs/NBFCs/Banks in the preceding 3 years
There shall not be any current overdues in any of the loans
availed from us or other NBFC / Banks
Exceptions on defaults are as follows:
 Borrower & Co-Borrower / Guarantor should not have
crossed 35 dpd even once in the life cycle of the loan tenor
of a fully closed Loan &Live loans. (in the preceding 3 years)
 The above exceptions shall be approved as per deviation matrix

5 HH unsecured exposure limit. Overall unsecured exposure not to exceed Rs.500000/- at the
household level for Wes ben.

6 HH unsecured exposure limit. Overall secured exposure not to exceed Rs.10,00000/- at the
household level for Wes ben.

II. Quantum of Loan

1 Loan Amount Minimum Loan Amount : Rs.1,00000/-
Maximum Loan Amount : Rs.10,00000/-

2 Loan – Appraisal
III. Charges Loan & Repayment Period
SM shall fill the customer details / profile in the Business Loan
appraisal sheet.
To fix the loan amount, SM shall fill the details in the Credit
Evaluation sheet (CES).

1. Rate of interest & Processing Fees  24% To 30% interest per annum will be charged on the
loan offered to the customer on the loan amount
sanctioned
 3% processing fee.
2. Penal Interest  2% additional interest per month on overdue EMI
amount
3. Repayment Mode  Through ENACH/ NACH only.

4. Repayment Period  Minimum - 18 months

 Maximum – 60 months
 Loan to be repaid in equated installments.
 Frequency of repayment shall be on a monthly basis
5. Insurance  Only for Borrower

IV - MEL / Business Loan Process Flow

1. Sourcing, Lead generation &

enrolment  Sales Officer

2. KYC Check & Combo report

generation  Sales Manager

3. Client visit, Appraisal & Sanction  Sales Manager visits the client and does a personal
discussion with the customer and validate the
income and expense details captured in enrolment.
Checker 1(SM)  Sales Manager if satisfied with business/sales/ income
approves the application (Checker-1).
 The MEL appraisal sheet and CAMshould be uploaded in
PERDIX by the BM.

4. Document Execution
 Sales Officer attached to Branches.

 Subsequent to sanction, SO attached to the branches

shall get all the documents (Sanction letter. Loan
agreement forms, terms and conditions etc.) duly
executed by the borrower and Co Borrower.
5. Document Verification & Approval
 The branches shall forward the complete set of scanned
documents (Application form, accepted Sanction letter.
Loan agreement forms, terms and conditions etc., duly
Checker 2 ( BH) signed by the customer) to Checker-2 for verification and
approval.

 KYC verification – Aadhar Mandatory

 Highmark Combo Report verification for
 household limit, DPD.
 Document verification
 Tele verification – Loan amount, tenor,
EMI, & Nature of business
6. Disbursement
At Branches after checker-2 approval. The date of disbursement
for MEL/ Business Loan shall be aligned with the disbursement
schedule pertaining to the service area.
7. Schedule Collections
The collection schedule for the MEL / Business loan should be
aligned with the Collection officer.
8. Loan Utilization Check LUC shall be done by the Credit Team from 20 to 30 days from
the date of disbursement of the loan.

V- Mandatory Enrolment documents

1. Photograph Latest photo of the customers to be captured during enrolment and

uploaded in to Software.

2. KYC Documents Aadhar card mandatory. Second KYC can be either Voter ID card or
Driving licence.

Documents: Duly filled in and signed application and loan agreement form. All
mandatory fields to be filled up. Any alterations need to be
1. Application form countersigned.

2. Proof of ownership Sale Deed, House tax receipt, EB receipt, Patta.

documents

3. Income documents Documents which are available to establish the business/income of

the borrowers.

VI- Borrower Credit eligibility Criteria:

Credit Criteria Borrower Co-Borrower

Minimum age as on the date of 21 years 18 years

Enrolment ( Customer, Nominee,
Gurantor)

Maximum age at the time of maturity of 60 years 60 years

the loan

Eligible Household Income Clubbing of income of the

eligible Relationships in the
HH.

Acceptable Co-Borrowers relationship for  Applicant & Spouse.

availing of loan  Applicant &Father /
Applicant & Son.
 Applicant & Mother

Credit Bureau Checks. Mandatory Mandatory

Highmark Combo – Mandatory

CIBIL report to be extracted if there is

lack of information in Combo report.

Documentation verification (Business & Mandatory Mandatory

Residence) by SM– To be done with the
original KYC documents.

LTV Stock Hypothecation

agreement to be taken. Not
Stock value required for service
industry.

VII- Product Parameters:

SNo Criteria For all Borrowers

1. Validity of Bureau reports 10 days from date of extraction.

2. Sanction letter Sanction letter with terms & conditions to be

issued to borrowers. Validity is 10 days.

3. Negative Profiles Politician, Policeman, Advocate, Illegal

Activities

4. Prepayments Allowed

5. No due Certificate Will be issued by after clearance of all loan

dues. Original property papers and unutilized
cheques would also be returned to the
customers post loan closure.

VIII- Deviation Matrix Approving Authority:

Positions held Deviation Levels

Branch Head L1

Area Manager L2

Divisional Manager / Zonal Head L3

Sales Head L4

Note:- Sales Manager can sanction the loan in case if any Branch is not posted with SH.

IX - Lending Authority Limits:

Levels Sanctioning Limits

L1 Rs.100000/-

L2 Rs.300000/-

L3 Rs.500000/-

L4 Rs.10,00000/-
 X - Deviation Matrix and Approval Authority

S No Criteria Conditions to be complied for exception approval. Approving Authority

1 Death of Co-Borrower / Branch has to replace with fresh L3 / L4

Guarantor during the Co-Borrower/Guarantor for the loan with consent of
currency of the loan the borrower.

2 Business Stability less The customer / spouse has completed atleast 2 cycle L4
than 2 years loans with any other NBFC / Bank or with us without
any default. No deviation allowed in Credit Bureau
check.

3 New customer The customer / spouse has completed atleast 2 cycle L4

loans with any other NBFC / Bank without any default.
No deviation allowed in Credit Bureau information, if
available. No deviation in other product parameters.

4 Concrete shop  Residence in Branch service area for atleast 2 L4

years
 Must have evidence of operating in the same
place for 2 years
 Spouse / major son or daughter living with the
customer must be the co-applicant
 Customer / Spouse must have had NIL defaults
with any loan with us / outside
 No deviation allowed in Credit Bureau Check.

5 Both residence and  Residence in Branch service area for atleast 2 L4

shop is rented. years
 Must have evidence of operating in the same
place for 2 year
6 Maximum age of  Current Maximum Age at loan maturity is 60 L4
Borrower/Co Borrower years. In exceptional cases to go upto 65 years
at the time of loan maturity.
7 Cash Flow - Existing  Based on past repayment track of one cycle L3 / L4
fixed obligations for with us, exemption to factor obligation where
non-factoring as the number of installments due to us / any
expenses where other lender does not exceed three months
balance EMI’s payable
on existing loans does
not exceed 3 months.
8 Overdues in Gold Loans  Can be done if there are no current overdues L4
and Other Loans

9 Loans to service  No deviation in any credit criteria L4

industry.  No deviation in any product parameter

XI - MIS Report for Exception Approval

The Sales Head shall send a monthly MIS as per the below format to the Credit Head on details of all
such exceptions approved by him for the month by the 5th of the next month.
XII - MIS FORMAT

Date
S.N of Name of Acc Loan Loan Details of
o Branch Zonal Area Branch Disb Customer No Type Amount exception

XIII- Cases which cannot be processed

1. Business done on temporary & makeshift structure/premises.

2. Customers with Negative Profile
3. New customers with business vintage of less than 2 year
4. New customers who have a track record with default

XIV - List of Service related activities / Industry.

o Automobile repairs, services and garage,

o Tailoring shop,
o Tutorial & EDP center,
o Computer Training center,
o Servicing of agriculture farm equipment, pumps and bore-well,
o Beauty parlours
o Activities pertaining to Dairy, floriculture and horticulture.
o Electrical & Plumbing services.

XV - Negative Profile ( Applicable to borrower and all other members of the HH)

 Legal counsels(Practicing advocates)

 Policemen

 Politicians

 Illegal Activities

XVI – Loan Pre-Closure / Loan Written Off:

Differentiating Loan Written Off Loan Pre – Closure

Parameter
Repayment A lender Writes off a loan to equalise their Here, a lender gives gives up all

balance sheets. It Does not mean the loan is claims to a loan amount.It is a

cancelled. The loan account is active, and complete cancellation of a loan. This

lendres hope to make a recovery at a later means the borrower is free from their

date. debt.

Recovery What happens when a loan is written off is Lenders cannot pursure the loan

that lenders may pursure recovery with the amount once it`s waived off. They

help of a legal entity. They can do this since cannot seek assistance from any legal

the loan is not closed. entities or third-party recovery agents

to collect outstanding funds. In this

case, the loan is closed.

Collateral A lender has the legal right to retain any A waived-off loan means that the

collateral pledged by the buyer. They are lender must return any collateral

allowed to auction the collateral to recover pledged by the borrower at the time

the outstanding loan amount. of taking the loan.

Eligibility Financial Institutions write off loans to A loan waive-off facility is mainly

clean up their balance sheets and optimize provided to farmers to help them

tax liabilities. Hence, all borrowers come during natural calamities that are

under its purview. impossible to deal with.

Compulsion It`s mandatory for financial institutions to Borrowers cannot submit requests to

write off loans to keep their books and waive-off loans. This is a voluntary

ledgers balanced and in check. activity from the lender`s end with

the government`s support.

End of the Process