Summary of MSME and LAP Loan product note (version- 4)

 Target Sector and Segment:

 Target Sector: Micro, Small & Medium Enterprises (MSME), with a focus on Micro Enterprises.
 Target Segments: SENP, SEP, business entities, and salaried individuals.
 Sourcing Location: Within 40 Km from the CFPL branch location and within 50 Km from Maharashtra and Delhi NCR
branch Location
 Loan Facility: Term loan
 Co-borrowers/Guarantors:
 One mandatory co-borrower (spouse of applicant mandatory).
 Guarantor can be taken under deal as per credit discretion
 Collateral security may be accepted from co-applicant apart from borrower.
 Age Criteria:
 Income contributors: Minimum age at loan origination & Maximum age at the time of loan maturity
o SEP/SENP: 21 to 65 years.
o Govt. salaried: 18 to 60 years.
o Pension income: up to 70 years.
o Non-Govt. salaried: 21 to 60 years.
 Co-applicant (non-income contributor): 18 to 70 years at the time of loan maturity
 Security & Collateral:
 Secured loans with acceptable collateral (immovable property, hypothecation of assets).
 2 SPDC equivalent to loan amount, from applicant co-applicant/guarantor.
 Property should be constructed 85% and above
 Minimum 30% surrounding development is accepted within 0.5 Kilometer
 Business/Residence Vintage:
 Salaried: Bank salaried – minimum 2 years (6 months for govt. employees); Cash Salaried-minimum 3 years
 SEP/SENP/Business Entities: Minimum 3 years in residence and business. Proof required for loans above ₹10
Lakh.
 Repayment Track Record (RTR):
 For loans above ₹5 Lakh, RTR of active loans ₹2 Lakh+ should be checked on a sample basis
 Applicants must have a clean repayment history.
 Customer Verification:
 KYC checks, mandatory smartphone use, personal/business discussion (PD), Field Investigation (FI), due
diligence, title search, Valuation and risk checks (on credit referral only) are required
 Field Investigation (FI) is not mandatory whereas credit visit is conducted
 Property Valuation is mandatory; For loans above ₹20 Lakh, two valuation reports are required, will consider
lower
 Validity: CIBIL Report – 30 days, Sanction Letter – 90 days, Legal and Technical Report – 90 days
 Secured Bureau Check Norms: Reject if
 30+ DPD in last 6 months, except for credit card/Gold Loan/KCC/loans under 50,000
 Willful defaulters are strictly prohibited
 Suit filed cases may be approved by NCM and above
 Overdue/written-off/settlement amounts over 50,000 in property/commercial vehicle loans
 NPA at the time of loan application, except credit card and loans under 50,000
 SMA-2/SUB/DBT/LSS reported in the last 12 months, except credit card and loans under 50,000
 More than 3 unsecured active loans in the last 6 months are not accepted
 Overdue/written-off/settlement amounts is over 50,000 in the last 36 months, except for Gold Loan/KCC. (If
written-off amount is not mentioned, current balance is considered)
 SCHEME PROGRAM LOAN CRITERIA TENURE
 Bank Salaried
Insta Loan 2.00 Lakhs to 5.00 Lakhs ((7.5
 Cash Salaried 12 -72 months
(clear title, not setup profiles) Lakh for Delhi and Mumbai)
 AIP Program
Milk Trader
 AIP Program 2.00 Lakhs to 10.00 Lakhs 12 - 84 months
(clear title, milk income profiles)
 GST Program
Pragati
 Bank Statement 12 - 96 months
(fair profiles, semi-secured 2.00 Lakhs to 10.00 Lakhs
 Bank Salaried
properties)
 AIP Program
 ITR Program
 GST Program 12 to 120 Months
 Bank Statement 2.00 Lakhs to 50.00 Lakhs (180 months for Loan
Samridhi
 Gross Receipt above 20 Lakh/Case
(good profiles, clear title)
 Bank Salaried done with Strategic
Alliance Model
 AIP Program 2.00 Lakhs to 25.00 Lakhs

Scheme: Insta Loan (clear title, not setup profiles):

 Eligible Profiles:
 Non-setup business profiles
 All skilled freelancer service provider does not have shop/office or any permanent setup i.e. mechanic,
carpenter, plumber, electrician, barber, goldsmith, washer-men, tailor etc.
 All salaried borrower either with cash salary i.e. driver, housemaid, office boy, delivery boy etc.
 Dairy income earners.
 Ineligible Profiles: Income of daily wages workers, labours and push cart vendors are not allowed under the scheme
 Age norms: minimum 25 years
 SORP/SOCP properties type with clear ownership and title documents are allowed
 Loan Amount: 2 Lakh to ₹5 Lakhs (up to ₹7.5 Lakhs in Delhi and Mumbai)
 Loan Tenure: 12 months to 72 months
 Minimum CIBIL score: 650 or equivalent.
 Rate of Interest & Processing Fee: Minimum 24% and 3%
 Acceptable Income: Minimum Family Income should be 20,000 per months

 Bank Salaried
 Cash Salaried – Maximum Cash salary to be capped at Rs. 20,000 for all cash salary income contributors
 Assessed Income Program (AIP)
 Milk Income (Minimum 3 cattle- Only Cow and buffalo, excluding calf) : Lower of,
o Milk Statements available with banking credits - Average of bank (with 60% Margin)
OR
o Milk Statements available without banking credits OR Milk statements not available - Rs. 3000 per cattle
per month (to be verified at the time of PD)

 Sole cash salary and milk trader income contributor is not accepted.

 Income Assessment:
 Income of SENP/SEP/Business Entity assessed through AIP.
 Salaried employee’s income assessed through Bank Salaried Income Program.
 Cash salary employees' income assessed through Salaried Income Program.

 FOIR:
  Maximum Applicable FOIR :50% (considering 100% of Household Expenses as per category of branch – A- Rs.
4000, B – Rs. 3000 and C&D – Rs. 2,500)
or
 Maximum FOIR with household expenses :100%
 LTV: 55% (including insurance) No deviations allowed.

Scheme: Milk Trader Loan (clear title, milk income profiles):

 Eligible Profile: Milk traders, entrepreneurs, and milk aggregators.
 SORP/SOCP properties type with clear ownership and title documents are allowed
 Minimum of 10 cattle (Only Cow and buffalo, excluding calf) will be appraised on milk income.
 Loan Amount: 2 Lakh to ₹10 Lakhs
 Loan Tenure: 12 months to 84 months
 Minimum CIBIL score: 650 or equivalent.
 Rate of Interest & Processing Fee: Minimum 24% and 3%
 Income Assessment:
 Income calculation:
o Milk statement along with bank credits - Average of bank (with 60% Margin) OR
o Milk statement without bank credits or Milk statement not available - Rs. 3000 per cattle per month (to
be verified at the time of PD)
 Milk Trader Income, cash salary and non-setup profile cannot be merged for income assessment
 Verification:
 Physical PD mandatory.
 Validation of total cattle (cattle pictures are mandatory), business setup, milk production, and cattle feed(husk)
 Credit manager to verify milk statements.
 FOIR:

 Maximum Applicable FOIR :50% (considering 100% of Household Expenses as per category of branch – A- Rs.
4000, B – Rs. 3000 and C&D – Rs. 2,500)
or
 Maximum FOIR with household expenses :100%
 LTV: 55% (including insurance); No deviation allowed

Scheme: Pragati (clean profiles, semi-secured properties):

 All structured income Profile are eligible
 SORP/SOCP properties type are allowed
 Guarantor is mandatory
 Loan Amount: 2 Lakh to 10 Lakhs
 Loan Tenure: 12 months to 96 months
 Minimum CIBIL score: 700 or equivalent.
 Rate of Interest & Processing Fee: 18% and 2% (PF) applicable on 20% of the overall monthly MSME and LAP portfolio
 3 years property possession proof is required
 Income assessment:
 Income of SENP/SEP/ Business Entity assessed through GST/Bank statement/AIP
 Income of salaried employees assessed through Bank Salaried Income Program
 Other Income Norms
o Other income to be capped at 50% of main income (if non-documented income), 100% of main income (if
documented income).
 o Cash salaried norms to be followed in case of cash salary income
 FOIR: Lower of:
 Maximum Applicable FOIR (considering 100% of Household Expenses as per category of branch – A- Rs. 4000, B
– Rs. 3000 and C&D – Rs. 2,500)
o 65% (IP Program);
o 50% (NIP Program)
or
 Maximum FOIR with household expenses :100%
 LTV: 60% including insurance (55% for Agriculture Property)

Scheme: Samridhi (clean profiles, clear Title):

 All structured income Profile are eligible
 Loan Amount: 2 Lakh to 50 Lakhs (IP); 2 Lakh to 25 Lakhs (NIP; CAT A-25 lakhs, CAT B-20 lakhs, CAT C & CAT D-15
lakh);
 Loan Tenure: 12 to 120 Months (180 months for Loan above 20 Lacs/Case done with Strategic Alliance Model
 Minimum CIBIL score: 700 or equivalent
 Rate of Interest & Processing Fee: Minimum 16% (18% for AIP) and 2%
 Income assessment:
 Income of SENP/SEP/ Business Entity will be considered lower of;
o ITR/GST/Bank Statement/Gross Receipt Methods OR
o Income assessment during PD (Assessment Income Program)
 Income of salaried employees assessed through Bank Salaried Income
 Cash Salary is not allowed under this product
 Other Income Norms
o Other income to be capped at 50% of main income (if non-documented income), 100% of main income (if
documented income).
o Cash salaried norms to be followed in case of cash salary income
 FOIR: Lower of:
 Maximum Applicable FOIR (considering 100% of Household Expenses as per category of branch – A- Rs. 4000, B
– Rs. 3000 and C&D – Rs. 2,500)
o 65% (IP Program);
o 50% (NIP Program)
or
 Maximum FOIR with household expenses :100%
 LTV (Including insurance)
 Residential: 70% (60%Rented); Commercial: 60%; Industrial: 35%
 The LTV will be determined based on the usage of the property.
o If the property is utilized for commercial purposes exceeding 50%, the Commercial LTV will apply, and
Vice versa.
o In cases where the property is used for both commercial and residential purposes equally, the lower LTV
will be applied.

Non-Resident Indian (NRI) Co-Applicant Loan:

 An Indian citizen who holds a valid document like Indian passport and who stays abroad for employment or for
carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an
uncertain duration of stay is an NRI.
 Target Countries:
 USA, Canada, UK, Germany, France, Italy, Spain, Netherlands, Belgium
  Middle East – UAE (Dubai, Sharjah, Abu Dhabi), Saudi Arabia, Bahrain, Qatar (Doha, Muscat, Sultanate of Oman),
Kuwait.
 Asian countries – Singapore, Malaysia, Hong Kong, Japan.
 Australia, New Zealand.
 NRIs from negative countries (as listed separately) are not eligible
 Purpose: Home Construction, Repair and Renovation or Extension
 Target Segment
 Salaried NRIs are eligible as co-applicants
 Eligible categories: Skilled & Semiskilled professionals such as software engineers, engineers, and other
professionals, including carpenters, electricians, plumbers, mechanics, etc.
 Unskilled categories like laborers, maids, servants, gardeners, helpers, and cleaners are not allowed
 Contractual workers must have completed at least one full-year contract renewal with the same employer
 Eligibility Criteria:
 Person on Indian Origin having NRI status with a valid Indian passport and visa (including Khadim visa)
 Income must be in foreign currency and repatriable to India
 Minority profiles must be avoided
 Loan Amount – 2 Lakh to 50 Lakhs
 Loan Tenure – 12 months to 120 months
 Minimum CIBIL score – 700 or equivalent.
 Rate of Interest & Processing Fee: Minimum 20% and 2%
 Age Norms: 21- 60 years
 Co-applicant/ Guarantor of NRI:
 An Indian Male resident having blood relation of primary applicant
 An Indian Spouse or mother along with a guarantor with stable income is required
 Loan amount exceeds INR 10 lakhs, a guarantor with SPDC is mandatory
 Income Norms
 Minimum net salary of INR 50,000 per month must be reflected in the co-applicant's bank account.
 The average of the last 6 months' currency exchange rates should be used for conversion in any approved country
 Joint income of any borrower shall not be considered for eligibility
 Tentative Documents
 Copy of Valid Passport & valid visa for ID, Age, Address of residence and signature proof
 KYC Documents of POA and Guarantor
 Salary pay slip for last 3 months/Salary certificate (If variable components like OT and incentives are reflected
then six-month salary pay slips are required)
 Work permit, Labor Card or any other employment proof issued by concerned govt. /Employer
 A copy of the appointment letter and contract from the company employing the applicant
 Copy of all overseas bank statements for last 6 months if any
 Copy of NRE/NRO bank statements of last 6 months (if available)
 Passport copy with valid entry visa. (Applicant’s passport should not have ‘No Entry’ stamp on the passport
prohibiting NRI applicant entering a country)
 Power of Attorney (POA)
 Tax Return Statement (if available)
 KYC documents of POA
 Verifications
 PD of Indian residence address is mandatory
 Employment verification via email from the reporting authority of the applicant
 Email verification is mandatory for all cases through company’s official email address.
 For loans exceeding INR 10 lakh, tele-verification of the employer must be conducted
 Verification of NRE/NRO bank accounts
 Verification of guarantor’s residence and employment (if applicable)
  Credit report from the country of current employment (if available)
 FOIR: Maximum 50%
 Estimate or quotation is mandatory and verified by technical team
 LTV
 80% of estimate/quotation provided OR
 The technical verification of the property done by the CFPL technical team.
 Repayment, SPDC or NACH from a resident Indian bank account only.
 POA from Indian Resident is mandatory; residence verification to be done
 Negative Country List for Non-Resident Indian (NRI) Co-Applicant Loan
Sao Tome and Principe El Salvador Kyrgyzstan Papua New Guinea
Afghanistan Equitorial Guinea – Malabo Laos Rwanda
Albania Eritrea Lesotho Senegal
Algeria Ethiopia Liberia Sierra Leone
Angola Gabon Macedonia Solomon Islands
Azerbaijan Gambia (The Gambia) Madagascar Somalia
Benin Georgia Malawi Sudan
Bosnia Ghana Mali Swaziland
Burkina Faso Guatemala Mauritania Tajikistan
Burundi Guinea Moldova Tanzania
C African Republic Guinea Bissau Monteserrat Togo
Cameroon Guyana Namibia Uganda
Chad Haiti Nicaragua Uzbekistan
Chechyan Republic Honduras Niger Western Sahara
Colombia Iran Nigeria Yemen
Comoros Iraq North Korea Yugoslavia (Serbia)
Democratic Republic of The Israel - Westbank, Gaza, Pakistan Zambia
Congo (Zaire) Jerusalem
Djibouti Ivory Coast Palestine Zimbabwe

Balance Transfer (BT) Norms

 Minimum EMI seasoning of 6 Months
 Over the past 12 months, the customer must not have more than two Non- technical) payment bounces and No
Non-technical bouncing can be accepted in last six month, and should not exceed 30 Days Past Due (DPD) across the
loan tenure
 List of Documents (LOD), Statement of Account (SOA) reflecting the last paid EMI, Foreclosure letter not more than 1
month old from date of login, Copy of property documents as per LOD and POA cum authorization letter from
customer
 In case of Balance Takeover tenure can be given up to the existing period without any deviation

Top- up Loan
 For existing customers
 All applicants and co-applicants of the original loan must be retained.
 The original loan must have at least 12 months of EMI repayment (seasoning).
 No bounce in the last 3 months; a maximum of two payment bounces in the past 12 months, with no more than 15
DPD.
 EMI payments must be made from the same bank account as the parent loan. Cash payments are not allowed within
the parent loan; only NACH/SPDC are permitted.
 The current CIBIL score must be at least as high as the last CIBIL score used for the parent loan.
 Parent loan NOC will be blocked.
 For top-ups beyond 12 months, the appraised income should not exceed 50% of the last appraised income.
 ROI applies as per product and scheme.
 PF applies only to the top-up amount.
 No TSR charges unless additional property is used as collateral.

Negative and Caution Profiles

NEGATIVE PROFILE CAUTION PROFILE
 Anti-Social organizations and elements.  Security Services Companies and their Employees,
 Lawyers / Advocate / Policeman Manpower/Staffing service
 Time share companies and related persons, Film  Real estate agents / Builders and their relatives Chit
producing company fund companies/Stock Broking/Investment
 Warehouse receipts funding, Merchant exporters, companies and related employees
diamond dealer, Bullion trader,  Poultry Farm
 Production or trade in weapons and ammunitions,  Tobacco
alcoholic beverages (excluding beer and wine)  Non-Veg restaurant, Bar
 Gambling, casinos and equivalent enterprises  Gym, Fitness center
 Production or trade in radioactive materials. This does  Private financers
not apply to the purchase of medical equipment,  Multi-level marketing (MLM)
quality control (measurement) equipment and any  Mining work
equipment where IFC considers the radioactive source  Temporary set-up which is not authorized - Allowed
to be trivial and/or adequately shielded under Insta Loan only
 Production or trade in unbonded asbestos fibers. This  Civil contractors and Labour contractors involved in
does not apply to purchase and use of bonded asbestos construction work (above 5 lakh cases and minimum
cement sheeting where the asbestos content is less 2 site should be running)
than 20%  Consultant related profiles, Commission agent
 Drift net fishing in the marine environment using nets except Agri commission agent
in excess of 2.5 km. in length  Roadside vendors except Food / Snacks Counter and
 SPA Tea Stalls (no fixed establishment) - Allowed under
 Money lenders Insta Loan only
 Entertainment & Art related business, movie halls,  Moveable set-up which is not authorized - Allowed
malls under Insta Loan only
 Push- cart Vendor  Vendors of Choice Finserv Pvt. Ltd.
 Butchers  Gems and precious stones business
 Co-operatives society
 Small time Actors, Print & News Media, Press reporters,
News reporters, Editors, Journalists
 Collection agencies, Recovery agencies, Verification
agencies and their employees, DSAs and their
employees
 Truck Drivers
 Daily wage laborers / Workers
 Political exposed person (PEP) Profile - Sarpanch, Up-
sarpanch, Parshad

PD Matrix
Facility Amount PD authority
up to 10 Lakhs Credit Officer (CO)
Branch Credit Manager (BCM) and
Up to 15 Lakh
Divisional Manager (DM)/Branch Manager (BM) /Cluster branch manager (CBM)
Cluster Credit Manager/Central credit team member and
Up to 25 Lakh
Divisional Manager (DM) /Cluster branch manager (CBM)
State Credit Manager and
Up to 35 Lakh
State business head/Regional sales manager along with Video PD by NCM
More than 35 Lakh National Credit Manager (NCM) and
 State business head/Regional sales manager/Business Head

Approval Matrix
Deviations Scheme Central Credit NCM COC CEO/DCEO
Insta Y Y Y Y
Milk Trader Loan Y Y Y Y
Loan Amount
Pragati 7.5 Lakhs Y Y Y
Samridhi 15 lakhs 25 lakhs 40 lakhs 50 lakhs

Deviation Matrix
Central CEO
S. no. Deviations Description Criticality NCM COC
Credit /DCEO
Co-borrower/
1 For norms not met Medium Y Y Y Y
Guarantors
2 Caution Profile For More than norms High NA NA Y Y
Residence or business
3 Negative area Medium NA Y Y Y
collateral lying in negative area
Up to
For More than norms: Pragati Medium NA NA 120 Y
Months
4 Tenure
Up to Up to
For More than norms:
Low NA 144 180 Y
Samridhi
months months
LTV (other than Insta
5 and Milk Trader For More than norms Medium NA 5% 10% Y
scheme)
Documented Program Medium 5% 10% Y Y
6 FOIR
Non-documented program Medium 5% 10% Y Y
CIBIL Norms not met NA Y Y Y
Overdue/Witten
off/settlement amount of 50k Above Within 3
Bureau Score and NA Y
7 and above in property loan/ 3 Years Years
Norms High
Commercial Vehicle loan
CIBIL Score (Secured) – cut off Up to Up to
Y Y
650 625 600
CIBIL Score (Secured) – Pragati Up to Up to
Y Y
– cut off 700 650 600
8 RCU/FCU norms RCU/FCU norms not met Medium Y Y Y Y
Office/Business FI Refer/Not recommended/
9 Low Y Y Y Y
norms not met Negative
Income Ownership Income ownership norms not
10 NA Y Y Y
norms not met met Medium
Crime check norms not
11 Crime check norms not met Medium Y Y Y Y
met
Income contributor age
12 More than age norms Medium NA Y Y Y
norms
13 Non-Income More than age norms Medium NA Up to Above Y
contributor/Property 75 75
 owner age norms
Residence FI norms not Refer/Not
14 Low Y Y Y Y
met recommended/Negative
Any Observation found in
15 Dedupe norms not met Medium Y Y Y Y
dedupe
Business/employment
Business vintage & Proof
16 vintage & Proof norms Medium Y Y Y Y
norms not met
not met
GEO limit norms not
17 OGL – with collection comfort Low NA 5 KM 10 KM Y
met
Up to
Multiplier norms not Up to 3
18 Multiplier norms not met Low NA 2.75 Y
met times
times
19 Margin norms not met Margin norms not met Medium NA Y Y Y
Income Calculation (Turnover Up to
20 GST Return Program computed more than 100% as Low NA 1.5 Y Y
per GST return) times
Partial/full waiver/Less
Up-to Up- to Up- to
21 Insurance Norms tenure/full tenure waiver of Medium Y
20% 30% 50%
insurance
Balance transfer/Top-
22 BT Norms/Top-up not met Medium NA Y Y Y
up norms not met
6-12
23 Top-up norms Seasoning norms not met Medium NA Month Y Y
s
Within policy (any other
High NA NA Y Y
24 Policy Norms not met deviation)
Above policy High NA NA NA Y