POLICY PRINCIPLES
The program shall be guided by policy principles as detailed in below table:
Sr. Criteria Key Parameters
1 Product Unsecured Personal loans (term loans) to Salaried / Self Employed individuals
Target Customers applying through Digital channels.
2
Market
Minimum: INR 50k
3 Loan Amount
Maximum: INR 2.5 Lacs
Min 12 months; Max 36 month
Max tenure would also be restricted by the loan amount being offered:
Loan amount Max tenure
4 Tenor ₹50k 12m
>₹50k to ₹1L 18m
>₹1L to ₹1.5L 24m
>₹1.5L 36m
Underwriting will be completely BRE based, all policy conditions mentioned in the
5 Underwriting
policy will be configured in BRE to provide real time decisioning
Customer Minimum - 21 Years
6
Age Maximum - 65 Years at the end of tenure
Customer
7 Selection SMICC Digital PL / Self-employed scorecard to be used for respective segments
criteria
Parameter Norm
CIBIL Score Min 650
Current overdue Current overdue (reported within last 12m)
a. Not to exceed Rs.5k in case of CC/GL tradeline type
b. Not to exceed Rs.1k in other tradelines
DPD string - No 15+ in last 3m
- No 30+ (incl SMA) in last 6m
- No 90+ (incl SUB, DBT, LSS) in last 24m
Derog Status - No Suit Filed or Willful default
Bureau
8 - No account W/off, restructured, settled in last 36m
Norms
Unsecured Enquiries Not more than 10 PL/BL enquiries in last 90 days
Unsecured Loan Not more than 2 PL/BL taken in last 150 days (with
velocity cumulative sanction value of >=Rs.1L)
Bureau presence Atleast 12 months
Recent repayment Customer to have atleast 1 live tradeline in last 12m
track
Note: Above conditions will not be applicable for tradelines with ownership indicator
as ‘Guarantor’
Loan
Customer’s loan eligibility will be derived based on interaction between customer’s
9 Eligibility
CIBIL Score and SMICC Scorecard output.
assessment
Sr. Criteria Key Parameters
Loan capping
10 The loan eligibility arrived based on the assessment will be restricted based on
rules
tradelines serviced by customer in past
The above eligiblity would further be capped at based max 70% DBR (Calculated on
max tenure).
Final
For the purpose of DBR calculation, following income to be used
11 eligibility
i. In case of salaried, declared monthly income
(DBR Check)
ii. In case of self-employed, declared monthly income or 15% of declared monthly
sales revenue
TPP / Cross Loan eligibility can be increased upto 10% of the original eligibility exclusively on
12
sell account of cross sell / TPP products such as CLI, IHO etc.
Self-Employed: Waived
Salaried: Employment verification is waived for low risk customers based on SMICC
scorecard output.
For others, employment verification is mandatory and can be done through either
of below methods:
Employment
13 - Official Email ID validation (including domain check)
verification
- EPFO / TDS check
- CPV
- Salary credits verification from bank statement
- Employer ID card upload along with either FCU screening or CPV
- Salary slip upload along with either FCU screening or CPV
Or any other method of verification as approved by CRO - SMICC
Resi CPV is waived for customers in low risk segment as per SMICC scorecard output.
For other customers, residence CPV is mandatory but can be waived if the applicant
satisfies any of below conditions:
Geo location CIBIL
Condition available? Geo tagged city Score Current Address
Residence Same as
14
verification 1 Yes Address city Any Match with Bureau
2 No NA >730 Match with Bureau
Match with
Electricity bill /
Piped gas / Water
3 - - - bill
Sr. Criteria Key Parameters
In case customer’s geo tagged location / IP Address is outside of India, case to be
rejected.
Any additional CPV waiver criteria can be introduced with CRO approval
1. Hunter check to be done during the customer journey and customer should
not have any hunter match.
In case of hunter match, case can be processed with FCU approval or if hunter score
is greater than cutoff score as decided and communicated by FCU team.
15 Fraud Checks 2. In case physical documents are collected from the customer, FCU screening
/ sampling process as per FCU policy in force will be applicable
3. Aadhar – PAN linking to be mandatorily checked in all applications
4. In case of salaried, employer name to be checked against Negative company
list (as updated by FCU from time to time) / Probe42
Customer selfie to be captured during onboarding journey and same to checked for
liveliness.
Customer
16 Further, selfie to be matched with KYC document (either digitally or manually).
Selfie
In case KYC is being done manually (physical docs collection), then customer selfie
requirement is not mandatory
Internal
Mandatory
17 Dedupe
Check
18 Documents No income documents required
19 Locations All SMICC approved locations
Negative
Negative industries / profiles not to be processed. Same to be based on customer
20 Industry /
declaration
Profile check
SMICC
21 Total unsecured exposure with SMICC to be restricted to Rs.10L
Exposure
Disbursement
Disbursement and repayment account should be same.
and
22 The account should belong to the individual who has applied for the loan. Same can
Repayment
be validated using penny drop or similar service.
account
Can be done through any of the below modes:
- OKYC (Offline Aadhar based KYC)
23 KYC - CKYC
- Physical KYC or
- Any other mode allowed under KYC policy in force
Annual Customers with annual household income less than 3 lacs not to be processed under
24 Household the program.
income Same can be checked based on customer declaration
Annexure 1 – List of Negative Industries / profiles
Negative industries and profiles
Politicians / Active political contacts / Political Organizations
Police Officers
Print media – publishers /Electronic media
Wine Shops , Bars , Liquor Shops (GRMC/IFC)
Small garment manufactures
(only for BIL Segment, normal logins allowed for Retail)
Cinema and TV film making- Film Stars, Producers, Directors, sportsman and artists
Houses of Worship – Churches, Mosques, Temples, etc
Lawyers and legal professional
Private Financiers / money lenders
Share broking firms
Arms & ammunition dealer
Scrap dealers (Radioactive material, bio waste, international waste, ship breaking)
Builders/ Construction companies
Chits, Finance companies and other financial institutions
Recreational facilities like amusement parks. Equipment Hire for Film Industry (This does not include business establishments
like Sound Studios)
Event Management
MLM business (multi-level marketing)
Steel manufacturing and allied industry (including ingots and other secondary items; Value add products are allowed as
normal)
Bullion traders
Production or trade in any product or activity deemed illegal under as per Indian laws or regulations or international
conventions and agreements, or subject to international bans, such as banned pharmaceuticals, banned
pesticides/herbicides, ozone depleting substances, polychlorinated biphenyl (PCB's), wildlife or wildlife products regulated
under CITES.
Production or trade in alcoholic beverages (Excluding Restaurants)
Production or trade in tobacco
Gambling, casinos and equivalent enterprises
Production or trade in radioactive materials. This does not apply to the purchase of medical equipment, quality control
(measurement) equipment and any equipment where the radioactive source is trivial and/or adequately shielded.
Production or trade in unbonded asbestos fibres. This does not apply to purchase and use of bonded asbestos cement
sheeting where the asbestos content is less than 20%.
Drift net fishing in the marine environment using nets in excess of 2.5 km. in length.
Commercial logging operations, Production or trade in wood or other forestry products other than from sustainably
managed forests. Or Firms dealing in this industry and having a license from appropriate government authority as well as
firms trading in Plywood, Laminates and Furniture Manufacturing are allowed to be processed as normal profiles without
deviation.
Recreational facilities i.e. Amusement Parks
Any organization where harmful or exploitative forms of forced labour/harmful child labour is observed on personal
discussion or through any other verification cannot be funded