Credit Policy

1. Credit Policy Overview

Agrim Fincap Private Limited follows a comprehensive credit policy that ensures responsible lending while maintaining asset quality and regulatory compliance. This policy governs our credit appraisal, approval, and monitoring processes.

2. Credit Eligibility Criteria

2.1 Personal Loans

• Age: 21-65 years
• Income: Minimum ₹25,000 per month
• Credit Score: 650 and above preferred
• Work Experience: Minimum 2 years
• Debt-to-Income: Maximum 60% including new loan

2.2 Business Loans

• Business Vintage: Minimum 3 years
• Annual Turnover: Minimum ₹10 lakhs
• Profit Margins: Positive for last 2 years
• Credit History: Clean track record
• Industry Type: As per approved sectors

3. Credit Assessment Framework

3.1 Five C's of Credit

3.2 Credit Scoring Model

• Bureau Score (40%): CIBIL, Experian, Equifax, CRIF
• Income Stability (25%): Employment type, tenure
• Financial Profile (20%): Assets, liabilities, savings
• Demographics (10%): Age, location, profession
• Behavioral Data (5%): Banking patterns, digital footprint

4. Credit Approval Matrix

5. Industry and Sector Policy

5.1 Preferred Sectors

• Information Technology and Software
• Healthcare and Pharmaceuticals
• Education and Training Services
• Financial Services (Non-competing)
• E-commerce and Digital Services

5.2 Cautionary Sectors

• Real Estate Development
• Commodity Trading
• Textiles and Garments
• Airlines and Aviation

5.3 Negative List

6. Documentation Requirements

6.1 Identity and Address Proof

• Aadhaar Card (mandatory)
• PAN Card (mandatory for loans above ₹50,000)
• Voter ID, Passport, or Driving License
• Utility bills for address verification

6.2 Income Documentation

• Salaried: Salary slips, Form 16, bank statements
• Self-employed: ITR, P&L, Balance Sheet, GST returns
• Professional: Practice certificate, client agreements

7. Credit Risk Mitigation

7.1 Risk Assessment Tools

• Multi-bureau credit reports
• Bank statement analysis
• Digital footprint verification
• Social media profiling (where consented)

7.2 Security Requirements

• Unsecured Loans: Up to ₹15 lakhs for eligible customers
• Secured Loans: Property, fixed deposits, gold
• Guarantor: Required for loans above ₹10 lakhs (case-to-case)

8. Loan Monitoring Framework

8.1 Early Warning Signals

• Delayed EMI payments (7+ days)
• Bounced payment instructions
• Deterioration in credit score
• Adverse media reports

8.2 Portfolio Monitoring

• Monthly portfolio quality review
• Bucket-wise aging analysis
• Industry and geographic concentration
• Stress testing and scenario analysis

9. Credit Committee Structure

9.1 Committee Composition

• Chairman: Chief Executive Officer
• Members: Chief Risk Officer, Chief Credit Officer
• Secretary: Head - Credit Administration
• Invitees: Business heads as required

9.2 Meeting Frequency

• Weekly for large loan approvals
• Monthly portfolio review meetings
• Quarterly policy review and updates
• Special meetings as warranted

10. Regulatory Compliance

10.1 RBI Guidelines

• NBFC Master Directions compliance
• Fair Practices Code adherence
• KYC and AML regulations
• Prudential norms for asset classification

10.2 Reporting Requirements

• Monthly NBFC returns to RBI
• Credit information sharing with bureaus
• Suspicious transaction reporting
• Board and audit committee reporting

11. Policy Review and Updates

This credit policy is reviewed annually or more frequently as required by regulatory changes, market conditions, or business needs.

• Annual comprehensive policy review
• Quarterly performance assessment
• Immediate updates for regulatory changes
• Board approval for major policy changes