Internship marketing lending (End to End Normal Credit

Process) – at PT. Bank CIMB Niaga

Desmarnov Tirto Pamangin

Prospecting Initiation

Evaluating

Credit Proposal + RemarkAnalysisApproval

Credit Agreement Signing

DisbursementMaintenance

Booking

1. ProspectingProspecting is the stage where a relationship manager (RM) determines industries that can be prospected. After finding the industries that can be prospected an RM will begin to finding a debtor by existing, referral, sales call, canvassing, or walk-in customer.

2. InitiationInitiation is the stage where an RM conducts company plant visit and introduction. Company plant visit is done so that RM can understand well the debtor's business and lending purpose. In this initiation stage an RM will also collect the data required for processing credit from the debtor such as:

a) Personal data:

• Resident ID (KTP)• Family card (KK)• Marriage certificate• Taxpayer

identification number (NPWP)

b) Business licenses:

• SITU• TDP• SIUP• SKDP• SK Menkeh

c) Financial data:

• Financial statement of the last 3 years

• Bank statement 6 months

d) Collateral data:

• Rights to build certificate (SHGB) • Freehold certificate (SHM)• Supporting data:

• Permits building license (IMB) & blueprint

• Tax on land and buildings (PBB)

e) Additional data:

• List of suppliers• List of buyers

3. EvaluatingThis evaluating stage is conducted for assessing the 5C (Character, Capacity, Capital, Condition, and Collateral) of the debtor. The evaluating itself consists of three stages which are:

Qualitative analysis

• BI checking• Trade checking• Market checking• Community

checking

Collateral analysis

• Fully secured: cash collateral guarantee 100%

• Secured: real estate guarantee ≥ 125%

• Unsecured: real estate guarantee < 125%

Quantitative analysis

• Working capital need

• Repayment analysis

4. Credit proposal (CP) + RemarkThe result of evaluation process will be summarized into a credit proposal and remarks. Credit proposal and remark are then submitted to the branch manager for approval. After the branch manager (BM) approved the credit proposal and remark, they will be forwarded to the credit reviewer to get a review.

Credit proposal submission process must be adapted to the limit as follows:

• If loan > 50 Bio whether it’s fully secured/secured/unsecured: RM -> BM -> AM (Area Manager) -> credit reviewer -> Head of SME -> Credit committee

• If loan < 50 Bio whether it’s secured/unsecured: RM -> BM -> credit reviewer -> limit holder

• If loan < 50 Bio and it’s fully secured: RM -> BM -> limit holder

5. AnalysisCredit proposal and remark that have been approved by the BM and required documents such as spreadsheet, BI checking results, the results of appraisal, and the last 3 months bank statement are sent to the credit reviewer through the Business Credit System (BCS). Credit reviewer will analyze the debtor’s business nature, financial statements, collateral, and credit risk that may arise. Upon review, the credit reviewer will issue a credit review memorandum (CRM).

6. ApprovalApproving the loan application requires two perspectives which are from the business and risk side (business units and credit reviewer). The decision will be taken by the independent limit holder in accordance with the plafond credit limit proposed. Upon approval, an RM will make CP regularization containing credit terms that have been agreed by the credit committee or limit holder.

7. Credit Agreement SigningThe legal team will issue a credit agreement letter. RM, BM, notary, and the debtor will meet to sign the credit agreement letter as well as binding the debtor’s collateral. Notary will then issue a cover note and then send it to the legal team stating that the notary is handling the debtor’s collateral binding process.

8. BookingAt this stage an RM must complete all the required data and documents so that the loan can be booked. The compliance department will examine whether all the data, documents, and also the requirements have been met. If they’ve been met and complied, the compliance will do the booking and issue a booking agreement memorandum (Nota Persetujuan Pembukuan - NPP).

9. DisbursementAfter the booking agreement memorandum (NPP) has been issued, then the credit facility can be disbursed if the terms of withdrawal are met.

10. MaintenanceThe goal is to have a good relationship with the debtor so that the debtor conduct his payment obligations smoothly. This maintenance stage is also done so that our debtor(s) won’t be taken over by another bank. An RM visits the debtor at least once in 3 months to know the progress of the debtor's business and see his business operations. In addition to maintaining a good relationship, the maintenance is intended for monitoring documents that are maturing (i.e. insurance, certificates, TDP, SIUP, ID card, and SKDP). This stage is also intended for extending the short-term facility at least 3 months prior to maturity.

Annexes1. End to end normal credit process:

2. Lending products:

3. Credit proposal and remark structure