Loan 23.

5%
Interest
Rate

to
1

Retailers
Based on first 4 weeks on-time RD deposit
Steps -Overview
2
Identify prospects (targets) through Market Survey

If prospect is interested, collect TD and Check CB

If CB successful, verify documents collected from applicant/co-applicant

Open (Loan+CA+RD), (CA+RD) or only CA & handover Tatkal Kit

CPV to be conducted by BM or BCM

For successful CPV and CB Eligible cases, start Loan Proposal activity

Disburse the loan

Steps -Overview
3
Customer Eligibility conditions
(Documentation and insurance charges)

Shop Eligibility conditions

KYC Documents and Insurance

Types of Products
Shop/Retail Loan for Urban/Semi-urban Shop Owners
4
 Customer: Male/Female  LPF: 2.5%+GST for 50 weeks/6 month/
12 month loans
 Tenure: Weekly/Monthly
 CSIP: max 1% of loan amount
 Repayment: EWI  Applicable: 4th on-time RD deposit

! First loan linked to 1 RD account – RD Lien Marking

Savings Products
 Current Account  Recurring Deposit Account
o Titanium ATM/DEBIT CARD o Weekly deposit, 52 weeks tenure
o NO MINIMUM BALANCE o Compound Interest 7% (subject to changes)
o Rs. 400 Deposit to RD Account

! covered in detail in later part of this module

Eligibility Conditions
5

Particulars Eligibility Criteria As specified by

Avg. daily Sales >= Rs 1,000 customer,
To be verified by BM
Number of years in Business Min 1 Year (Contact Point
Verification – CPV)
Shop Size Min 50 SQFT
Approachable from front only Yes
Shop in a pucca building Yes
Age of Customer 18 – 58 years
RD deposit 4 on-time deposits

! If applicant/shop-owner is female, then co-applicant

(spouse/son/father/brother/father-in-law) is considered for loan application
Insurance Coverage
6

Applicant: Male (aged between 18 – 58 yrs)

Single CSIP to be collected
Applicant: Female (aged between 18 – 58 yrs.)
Co-applicant must be considered
CSIP to be collected for applicant & co-applicant

KYC Requirement
Applicant: Male
Primary KYC: Aadhaar Card
Secondary KYC: PAN Card

Applicant: Female (aged between 18 – 58 yrs.)

Co-applicant Primary KYC: Aadhaar Card
Additional Documents (if available)
7
• Drug license in case of medical store
• Shop Establishment License/GHMC License/Weight Measurement License
• Bank statement (To be uploaded depending upon the product)
• Electricity bill
• LPG Gas bill
• Water bill
• Mobile phone bill
• Vintage Proof
! must be in the name of the applicant
8
Shop Types
Shop Types
1 Accessories (2 & 4 wheelers) 18 Medical shop
9 2 Bakery 19 Optical shop
3 Furniture shop 20 Pan Shop
4 Mobile phone & Accessories 21 Photo Studio
5 Dairy parlor 22 Printing press
6 Electrical shop 23 Sanitary store
7 Electronic shop 24 Scrap shop
8 Fabrication 25 Stationery Shop
9 Fancy Store 26 Steel/Plastic Shop
10 Footwear store 27 Sweet Shop
11 Garments store 28 Tailoring Shop
12 General store 29 Hardware Shop
13 Gift article shop 30 Tent Shop
14 Household items 31 Paint Shop
15 Hotel 32 Hair Saloon/Beauty Parlour
16 Jewellery store 33 Rice Shop
17 Meat Shop 34 Pooja Shop
Shop Types
10
Shop Types
11
Shops to be avoided
12

Dry clean Packers and Movers

Bike repairs Sound system
Bike Servicing Water Plant
Xerox Shop
Internet shop
Video Game Parlour
Lottery Shop
Shop Types
13

Two – Wheeler Repair Shop

Pan Shop not in Pucca Place

Shop Types
14

Not a Pucca Shop

Auto Repair Shop

Shop Types
15

Carpentry Shop

Insufficient Inventory/ Scarce

Resource
Shop Types
16

Under Construction Shop

Shop not in Pucca Place
Insufficient Inventory/ Scarce
Resource
 Types of Product
17 Regular and Instant
Loan Cycle
Cycle 1 Loan (EWI only)
(Loan Proposal and Disbursement)

Top Up Loan (EWI only)

(minimum Rs. 30,000 or half of the previous loan, whichever is highest)

Cycle 2 Loan (EWI and EMI)

18 (Top up same rule as Cycle 1)

Cycle 3 Loan (EWI and EMI)

(Top Up same rule as Cycle 1)
Product 1 – Regular Loan
19
Cycle-1 Cycle-2 onwards
Ticket sizes
Tenure Tenure
30K 50 weeks 50 weeks
40K,50K, 60K 50 weeks 50 weeks

70K,80K,90K,1L NA 50/75/104 weeks

• Cycle 1 Loan is disbursed to customer after 4 weeks of on-time RD

deposits
• Repayment will be based on Weekly Installments
Product 2 - Instant Loan
20
Product Cycle-1 Cycle-2 onwards
Ticket sizes
Rules
Tenure Tenure
ABB in
existing 70K,80K,90K,1L 50/75/104 weeks NA
account

• if customer is ready to give his last 3 months bank statements, he can get 70k-1
lakh loan in first cycle itself.
• If customer is not ready to give his bank statement than he is eligible for
product 1 i.e 30k-60k ticket size
• Based on average bank balances in existing bank account.
• Average monthly balance should be minimum of Rs.4000 for the last three
consecutive months
• Minimum of 5 credit transactions for the last three consecutive months
• No cheque/ECS bounce in the last three months
• 1 Post Dated Cheque if 70k-1 lakh loan is disbursed
• Proof of Purchase (collect within 30 days of disbursement) and Shop Vintage
proof(Utility Bills)
• Residence verification must be conducted during CPV
Proof of Purchase required for Product 2 - Instant
Not eligible for the said product
Business21
Purpose Proof of Purchase Scrap shop
Not eligible for the said product
General store Not required Pan Shop
Not eligible for the said product
Tailoring Shop Yes- Machinery Furniture shop

Hotel Yes- Machinery, F&F Printing press Yes- Machinery

Hair Saloon/Beauty Sweet Shop Not required
Parlour Yes- F&F
Not required Photo Studio Yes- Machinery
Garments store Not required
Not required Hardware Shop
Fancy Store Not required
Not required Pooja items
Mobile phone &
Not required
Accessories Footwear store

Meat Shop Not required Tent Shop Yes - Item purchase bill
Not required Not required
Electrical shop Jewellery store
Not required Not required
Accessories (Two & Four Steel/Plastic Shop
Not required
wheeler) Household items
Dairy parlor Not required Not required
Gift article shop
Stationery Shop Not required Not required
Paint Shop
Medical shop Not required Not required
Sanitary store
Fabrication Not required Not required
Rice Shop
Bakery Not required Not required
Optical shop
Product 2.1 - Instant Loan
22

Cycle-1 Cycle-2 onwards

Product Rules Ticket sizes
Tenure Tenure

Average bank balance in

30k-60k 50 weeks NA
existing account

• If customer instantly want loans and don’t want to wait for 4 weeks, he is
eligible for 30k-60k loan tenure
• Based on average bank balances in existing bank account.
• Average monthly balance should be minimum of Rs.3000 for the last three
consecutive months
• Minimum of 5 credit transactions for the last three consecutive months
• No cheque/ECS bounce in the last three months
• 1 PDC cheque
• Vintage Proof- 1 year- Utility bills like Electricity bill, Tax bill or Rental agreement
• Residence verification must be conducted during CPV
Product 3 – Regular Loan
23 Cycle-1 Cycle-2 onwards
Product Rules Ticket sizes
Tenure Tenure
50 weeks and
30K,40K,50K NA
6 and 12 months
>=80% cashless
collection NA 50/75/104 weeks
60K,70K,80K,90K,1L
6/12/18/24 months
NA

• If in cycle 1, customer deposits his EWI through cashless mode, he will be offered
fortnightly and monthly loans from 2nd cycle onwards.
• Based on minimum >=80% repayment collections through SI/Debit Mandate in cycle1.
• For calculating the cashless efficiency in cycle-1, pre-Covid19 (23rd Mar’20) repayment
collections to be considered. If any new loan is disbursed after 23rd March than cashless
collection efficiency of whole period will be considered.
• Weekly & monthly products are available in cycle-2 onwards for all the loans

Benefits for the Customer:

1. 1% less interest rate

2. Monthly tenure loans applicable
Product 4 – Regular Loan
24

Cycle-1 Cycle-2 onwards

Product Rules Ticket sizes
Tenure Tenure
50 weeks and
30K,40K,50K
ABB in IIB 6 and 12 month
NA
account 60K,70K,80K,90K,1L, 1.5L, 50/75/104 weeks
2L 6/12/18/24 months

• Must have Current account of IndusInd Bank

• Considering average monthly balances after completion of cycle-1 loan
• Average monthly balance should be minimum of Rs.5000 for the last 03 consecutive
months
• Minimum of 05 credit transactions for the last three consecutive months
• 1 Post Dated Cheque

Benefits for the Customer:

1. 1L to 2L loans available
2. Monthly tenure loans applicable
Product Variant 5 – Regular Loan
25

Product Cycle-1 Cycle-2 onwards

Ticket sizes
Rules
Tenure Tenure
50 weeks
30K,40K,50K
Combination 6/12 months
NA
of 3&4 60K,70K,80K,90K,1L, 1.5L, 50 Weeks
2L 6/12/18/24 months

• Eligibility is based on cashless criteria and saving balances in IIB account (as
mentioned in product 3 and product 4 resp.)
Re – Onboarding for Dormant Customers
26

Proposed
Proposed Framework
Parameters
▪ Loan pre-closed ▪ On-boarding proposed as cycle-1 customers, but without
before any 4 weeks waiting period
completion of ▪ Loans to be disbursed instantly
50% of active ▪ No need to open new RD account if the customer is
loan tenure in already continuing the RD instalment
cycle 1 ▪ New RD account to be opened if the RD is already pre-
closed. Loan to be disbursed after successful payment of
first RD instalment.
Loan pre-closed ▪ On-boarding proposed as cycle-2 & onwards customers
after completion of
50% of active loan
tenure in cycle 1
 PRODUCT CHANGES FROM 9th NOV
S.No Particulars Existing New
1 Account Type SB Account Current Account
5 Signature Update
6 Cheque Book
Liabilities
7 QR Code
8 WhatsApp Banking
9 ATM Withdrawal Limit (Rs) 25K 50K
10 Minimum tenure 20 50
11 Minimum Ticket Size (Rs) 20K 30K
12 Loan Documents Digitization

13 LPF/CSIP/Doc charges deduction from Loan Amount

14 Interest Rate 23.5% 23.5%

Assets
16 LPF 1.5%/ 2.5%+GST 2.5%+GST

17 CSIP (Single) 0.5%+GST 0.5%+GST

18 CSIP (dual) 1%+GST 1%+GST
19 Documentation Charges - 2%+GST
20 Loan Fore-closure Charges* - 4%+GST
21 Cash Collection Charges (Rs)^ - 50+GST

Note:
* Loan Foreclosure charges to be charged on Net of RD pre-closure amount
^ Effective date will be announced separately for cash collection charges 27
 COMPETITOR RATES FOR UNSECURED BUSINESS LOANS IS 28-30 PERCENT

Loan Size
Company Interest Rate Processing Fee Insurance Premium Foreclosure charges Other Charges
(lacs)

• Allowed after 1 EMI, Rs 2K + GST as document

Bajaj Finserv 1 – 15 28% Up to 3% + GST 2%
• 4% processing charges

1–3 Rs 3K - 4K
HDB 2% Allowed after 6 EMIs,
Up to 36% (Age 30 – 40 Yrs.) Application Fee of Rs 3.5K
4%
3–5

RBL 1–5 26% Rs. 7,500 + GST 0.49% for 1 Lac Allowed only after 12 EMIs,

Allowed after 6 EMIs,

IDFC 1-3 28% - 32% Up to 3.5% 2%
4 - 5%

Jana Small Depends on the State where

1–3 26%-28% 3% + GST 1%
Finance Bank documents are executed

28% - Cycle 1 2.5% - Cycle 1

Aye Finance 1–3 ~0.9%
24% - 26% >Cycle 1 1% - >Cycle1

Suryoday 1–3 28% 3% + GST 2% Stamp duty as per actuals

Origo 1–3 30% 2.5% + GST 0.70%

INDUSIND
30K-2L 23.5%/22.5% 2.5% + GST 0.4-1% 4% + GST* 2% + GST
(BFIL)

*Note: To be charged on Net of RD pre-closure amount