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Front end Distribution Channels, Paramters for loan consideration, Value parameters for Borrowers, Sample chart explaining the SME loan process, Workflow model for sanction and disbursement process.
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Naveen Panchal
Neha Jain
Malay Srivastava
Vishal Patil
PGDM-Business Design (2011-13)
Welingkar Institute of Management Development & Research, Mumbai
SME Frontend and Backend
FRONT END DISTRIBUTION CHANNELS
• Relationship managers• Websites• Existing customers Database. • Branches
In-house
• Direct Sales Agent ( 1% of lending amount)
• Charted Accountants (1-2% of lending amount)
• Rating Agencies.
External
agencies
3
WORKFLOW FOR SME SALES TEAM
Lead genera-tion
Proposal
genera-tion
Activities performed Contacting customer for preliminary information In-principle check on viability of lending Compilation of proposal
Proposal generated
Given to local Credit Hub
Industry association tie-
ups
Branch walk-in
Outbound tele-calling
Sales referrals
Events
Sales Coordinator
Head Sales
Advertising (SMS,
Internet, Inbound
Call Centre)
. . .
Relationship Manager (RM)
Relationship Officer (RO)
Sales team
Parameters for Loan consideration
Ind
ivid
ual • Integrity
• Intentions• Educational
Background• Past Experience in
the Sector• Owners Capital• Capability to Pay
backO
rgan
izati on• Credit Rating
• Debt Equity ratio• Balance Sheet• Feasibility of the
Product• Lenders
experience with the organization
• Asset and Mortgages offered
Value parameters from Borrowers Perspective
Interest Rate. Turn around Time. Collateral. Pre sanction amount facility. Documentation. Products/Schemes available. Relationship with Bank.
bank
processingdisbursement
Sme applicant
repayment
WORKFLOW FOR SANCTION AND DISBURSEMENT PROCESS (1/2)
7
File with appraisal note
In-principle decision to go-ahead with proposal or not, together with Credit Officer
5
File with inspection report
Receipt of proposal
1
Credit Suppor
t Officer
Credit Officer
Sanc-tioning Authorit
y
Check on complete-ness of proposal
2
Proposal
Data entry for credit rating and financial analysis
3
Complete proposal
Study of file, pre-sanction visit, customer meeting and raising customer queries
4
File with ratios and credit rating
Request for advocate, valuer and TEV reports (where required)
6
Returned to RM/RO for completion
Incomplete proposal
Satisfactory response to customer queries, preparation of appraisal note
7
2 day
4 day
6 day
8 day
10 day
12 day
14 day
Time meter for cases where TEV is not required
WORKFLOW FOR SANCTION AND DISBURSEMENT PROCESS (2/2)
8
Credit Suppor
t Officer
Credit Officer
Sanc-tioning Authorit
y
Issue of final sanction letter with signature from Credit Officer
11
Decided files
Check on advocate, valuers and TEV reports
9
File with reports
Preparation and stamping of documents
12Execution of documents in presence of Branch Officer/ Manager
13
Vetting of documents by advocate
14
Disburse-ment by Branch
Sanctioned and vetted documents released for disbursement
Receipt of advocate, valuers and TEV reports (where required)
8
Final sanction by Sanc-tioning Authority
10
File with reports
2 day
4 day
6 day
8 day
10 day
12 day
14 day
Time meter for cases where TEV is not required
INDIAN Financial Network (INFINET),: the communication backbone for the Indian banking and financial services industry spearheaded by the Institute for Development and Research in Banking Technology (IDRBT)
Finacle: Finacle direct banking solution is a comprehensive solution for banks to directly acquire, track and service customers, through the Internet, mobile or call center channels, in the complete absence of a brick and mortar infrastructure. Built on new-generation technology, it provides an end-to-end platform that supports the full-fledged delivery of a comprehensive range of assets and liabilities solutions, facilitated through direct access to the customer 24/7, 365 days a year