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    Credit Processing For CV

    Uploaded by

    Bhaskar Garimella
    This document provides a checklist for processing commercial vehicle finance cases prior to disbursement. It outlines 28 parameters to verify including vehicle details, loan amount, tenor, scoring, security, margins, borrower details, documentation, and post-disbursement follow up. Compliance with parameters like primary security creation, borrower qualifications, key documentation, and vehicle registration must be ensured according to product policy guidelines. The checklist aims to standardize the pre-disbursement verification process for commercial vehicle loans.

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    Credit Processing For CV

    Uploaded by

    Bhaskar Garimella
    26 views5 pages
    This document provides a checklist for processing commercial vehicle finance cases prior to disbursement. It outlines 28 parameters to verify including vehicle details, loan amount, tenor, scoring, security, margins, borrower details, documentation, and post-disbursement follow up. Compliance with parameters like primary security creation, borrower qualifications, key documentation, and vehicle registration must be ensured according to product policy guidelines. The checklist aims to standardize the pre-disbursement verification process for commercial vehicle loans.

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    Credit Processing for CV

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    This document provides a checklist for processing commercial vehicle finance cases prior to disbursement. It outlines 28 parameters to verify including vehicle details, loan amount, tenor, scoring, security, margins, borrower details, documentation, and post-disbursement follow up. Compliance with parameters like primary security creation, borrower qualifications, key documentation, and vehicle registration must be ensured according to product policy guidelines. The checklist aims to standardize the pre-disbursement verification process for commercial vehicle loans.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    26 views5 pages

    Credit Processing For CV

    Uploaded by

    Bhaskar Garimella
    This document provides a checklist for processing commercial vehicle finance cases prior to disbursement. It outlines 28 parameters to verify including vehicle details, loan amount, tenor, scoring, security, margins, borrower details, documentation, and post-disbursement follow up. Compliance with parameters like primary security creation, borrower qualifications, key documentation, and vehicle registration must be ensured according to product policy guidelines. The checklist aims to standardize the pre-disbursement verification process for commercial vehicle loans.

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    © All Rights Reserved
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    of 5

    MSME Product “Commercial Vehicle Finance”

    Checklist for processing of cases (Pre disbursement)

    Sl Parameter Dealing Complied as per Deviatio Reference in the Product


    No officers product norms ns List Paper
    comment (Yes/ No)
    1 Type of vehicle Target Segment
    2 Amount Applied Loan amount
    3 Tenor Tenor (inclusive of
    moratorium for TL)
    4 Moratorium Should not be more than 3
    months
    5 Scoring - For Cases upto Rs.10 lakh
    - Minimum 65% in
    product specific Scoring
    - For Case above Rs.10 lakh
    – Minimum 65% in MSE
    Scoring
    6 - Security Check Security Clause
    A. Primary:
    - Charge Created (Hypothecation
    / Mortgage (in case of SOD
    facility)

    B. Collateral Security:
    - Charge Created
    (Hypothecation/ Assignment/
    Lien/ Mortgage etc as the case
    may be)
    Sl Parameter Dealing Complied as per Deviations Reference in the Product
    No officers product norms List Paper
    comment (Yes/ No)
    7. Margin

    <70%
    8 Financial Benchmark
    DSCR- Min. 1.50
    DSCR ICR – Min 1.50
    ICR Current Ratio – Min. 1.25
    Current ratio TIL/TNW – Max. 3.5
    TOL/TNW
    Sl Compliance Complied (Yes / No) Deviation obtained (if Remarks
    No. not complied), please
    mention DoP Clause
    It is ensured that:
    A Borrower is having at least 1/ 2 years of
    business experience
    B Borrower is local resident for at least 2 years
    C Borrower possesses a permit/license. Copy
    of the same is kept on record.
    D Residence is in the radius of ____ KMs from
    the branch
    E No default in existing credit history ( except
    for technical reason)
    F Borrower is having alternate source of income
    G Age of the borrower within the stipulated age 60 years for individual/
    proprietor for cases upto
    Rs.10 lakhs

    50 years for individual/


    proprietor for cases above
    Rs.10 lakhs
    H Insurance of Vehicle with bank clause (Post
    disbursement- to be ensured within a week of
    disbursement of loan)
    I Insurance of immovable security
    J Keyman insurance obtained (in case of
    Individual/ Proprietorship/ Partnership firm)
    K Valuation report from the empanelled valuer
    obtained. Report is not older than 3 months
    L Quotation obtained from authorized dealers
    M Pre Sanction/ Post sanction visits
    N Location and photograph captures using Geo
    IDBI Application
    O Pencil paper actual physical scanning of
    engine and chassis number done and kept on
    record duly verified by the Branch Officials.
    (To be ensured on the date of delivery of
    vehicle)
    P Hypothecation and other documents
    executed (for primary security)
    Q Declaration cum undertaking for mortgage of
    immovable property obtained
    R Memorandum of Entry (for creation of
    mortgage) executed
    S Necessary registration of charges with
    CERSAI, ROC, etc. checked
    T Legal enforcement-cum- genuineness
    certificate of title deeds and other legal
    documents related to security creation and
    perfection obtained from the empanelled
    advocate independent of the advocate who
    have given the title search report for the
    particular case.
    U Original Invoice of vehicle obtained
    V Copy of the necessary documents filed by
    borrower relating to Registration of vehicle
    is kept on record (expected date of receiving
    the RC is within a month from date of
    disbursement) – Follow up is must.
    W Acknowledgement from customer taking
    possession of vehicle from the dealer is
    obtained (On the date ofdelivery of vehicle)
    X Cross checking of vehicle details along with
    insurance validity.

    Details fetched needs to be documented in


    file.
    (Post disbursement. To be checked within a
    month from date of disbursement)

    Note:

    - Conditions stipulated at Sl. No. “O” and “W” to be complied with on the date of delivery of vehicle.
    - Conditions stipulated at Sl. No. “H” and “V” to be complied with as per given timeline viz. within a week for insurance
    and within a month for RC details.

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