Lending Policy

1. Lending Policy Framework

Agrim Fincap Private Limited has adopted a comprehensive lending policy to ensure prudent credit practices, regulatory compliance, and sustainable business growth while serving the financial needs of our customers responsibly.

2. Lending Objectives

2.1 Primary Objectives

• Provide accessible credit to deserving borrowers
• Maintain asset quality and minimize credit losses
• Ensure regulatory compliance in all lending activities
• Generate sustainable returns for stakeholders

2.2 Strategic Goals

• Achieve portfolio growth of 25-30% annually
• Maintain gross NPA below 3%
• Diversify across customer segments and geographies
• Leverage technology for efficient processing

3. Target Market Segmentation

3.1 Customer Segments

3.2 Geographic Focus

• Primary Markets: NCR, Mumbai, Bangalore, Pune
• Secondary Markets: Tier-2 cities with growth potential
• Digital Markets: Pan-India through online channels

4. Product Portfolio

4.1 Personal Loans

4.2 Business Loans

• Working Capital Loans: ₹5L - ₹2Cr, 1-3 years
• Term Loans: ₹10L - ₹5Cr, 3-7 years
• Equipment Finance: ₹2L - ₹50L, 2-5 years
• Trade Finance: ₹1L - ₹25L, 6-24 months

5. Lending Process Framework

5.1 Application Journey

5.2 Service Level Agreements

• Application Acknowledgment: Within 2 hours
• Initial Assessment: Within 24 hours
• Credit Decision: 2-7 days based on amount
• Disbursement: Same day post-approval

6. Risk Management Framework

6.1 Credit Risk Controls

• Single Borrower Limit: Maximum 5% of NOF
• Group Exposure: Maximum 10% of NOF
• Unsecured Exposure: Maximum 70% of portfolio
• Geographic Concentration: Maximum 25% in single state

6.2 Portfolio Diversification

• Product Mix: 60% Personal, 30% Business, 10% Others
• Ticket Size: Average ticket size ₹3-5 lakhs
• Tenure Mix: Balanced across 1-7 year tenures
• Customer Segments: Diversified risk profiles

7. Interest Rate Policy

7.1 Pricing Framework

• Cost of Funds: Base borrowing cost + operational expenses
• Risk Premium: Based on customer credit profile
• Profit Margin: Target ROA of 3-4%
• Market Competition: Competitive positioning

7.2 Rate Setting Process

• Monthly ALCO reviews and rate decisions
• Risk-based pricing models
• Regular benchmarking with market rates
• Board oversight for policy rates

8. Collection and Recovery

8.1 Collection Strategy

• Day 1-30: SMS and email reminders
• Day 31-60: Phone calls and soft collection
• Day 61-90: Field visits and personal meetings
• Day 90+: Legal action and asset recovery

8.2 Recovery Channels

• In-house collection team
• Authorized collection agencies
• Legal firms for litigation
• Asset reconstruction companies

9. Technology Infrastructure

9.1 Core Systems

• LMS: Comprehensive loan management system
• CRM: Customer relationship management
• Credit Scoring: AI/ML based models
• Mobile App: Customer self-service portal

9.2 Digital Initiatives

• API integrations with banks and fintechs
• Digital KYC and video verification
• Automated underwriting for small loans
• Real-time payment and collection systems

10. Regulatory Compliance

10.1 RBI Compliance

• NBFC Master Directions adherence
• Fair Practices Code implementation
• Asset classification and provisioning norms
• Corporate governance requirements

10.2 Other Regulations

• Prevention of Money Laundering Act (PMLA)
• Information Technology Act compliance
• Consumer Protection Act adherence
• Data Protection and Privacy laws

11. Performance Monitoring

11.1 Key Performance Indicators

11.2 Reporting Framework

• Daily MIS to senior management
• Weekly business review meetings
• Monthly board reporting
• Quarterly investor presentations

12. Policy Governance

12.1 Approval Authority

• Board of Directors: Overall policy approval
• Risk Committee: Risk parameter approvals
• ALCO: Interest rate and liquidity policies
• CEO: Operational procedure approvals

12.2 Review Cycle

• Annual comprehensive policy review
• Half-yearly performance assessment
• Quarterly risk parameter review
• Monthly operational updates