TARGET CUSTOMERS:

1. Salaried 
2. Self Employed

AGE

• Salaried Individual 
  1. MIN age 21 Years
  2. MAX Age (at the maturity of loan) – 60 Years or Retirement Age whichever is earlier.

• Self Employed
  1. MIN age 21 Years
  2. MAX Age (at the maturity of loan) – 60 Years

•  Pensioner – Max. Age above 60 years can be allowed subject to providing documentary evidence for pension payment from the Employer and certification from the Bank for credit of Pension amount in Customer account. Maximum LTV in such cases shall be restricted to 80%.

• Minor (age between 18 to below 21 years)
•  Loan can be extended only with Co applicant from blood relation with in the family who should be the earning member with minimum net salary/income as per the policy. All KYC and Income documents should be taken for the Co applicant also.  
• Repayment PDCs to be collected from the Co applicant only. All required Loan documents to be signed by both the applicants and TVR/FI verification to be conducted for both the applicants. 

INCOME ELIGIBILITY:

SALARIED INDIVIDUAL: Take home salary (Net Salary) Rs. 10,000/= per month.  Net salary will be based on average of last 3 months salary credited in the Bank Statement. If Salary credit is not reflecting in Bank Statement, then the case should be treated as NIP and processed accordingly.

SELF EMPLOYED: Net income of Rs. 70000/= P.A as evidenced by the Income Tax Return   & Bank Statement. We may accept VAT return as income proof with max.10 percentage of the Turnover as profit of the business.

If the net salary/income is less than the amount mentioned above then we can consider the income of spouse or children (son/daughter) provided if he/she sign the loan document as co applicant subject to the following conditions:

• Total net salary of both the main applicant and Co applicant (spouse/son/daughter) should be not less than Rs.20000/- 
• All necessary KYC and income documents similar to main applicant shall be taken from the Co applicant. Co applicant must sign the entire loan documents as guarantor.
• FI & TVR should be done satisfactorily for both Main and Co applicant.
• In the above conditions max. Net LTV can be given as per the policy.
• Case shall be recommended by Sales Manager with the responsibility for collection.

Maximum Net LTV* (Net LTV= Invoice Value-Margin Money-Advance EMI)

*LTV based on ‘On Road Price ‘Updated in the System. 

*Model wise maximum Net LTV will be changed according to NPA position.

NO INCOME PROOF GROUP (NIP):

• Where Customer is not in a position to give Income proof such as IT return or VAT return (for self-employed biz), Pay slips (in case of Salaried Class) we shall take 3 months bank statements from the biz account. 
• Customer should be residing in his or her own residential property and not in rented house. Proof of residential ownership to be provided by the Customer.
• Good banking track record must be checked and average balance maintained should be more than one EMI. We must satisfy the repayment capacity of the Customer from the bank statements. No deviations to be allowed in average bank balance norms. 
• We must take the biz ownership proof document from the Customer to evidence his or her ownership for the biz establishment.
• For salaried class if the Customer is not in a position to give latest 3 months Pay slip, we may take Salary Certificate from the Employer evidencing Customer’s employment with the organization.

If Customer is not able to provide Pay slip or Salary Certificate and Salary Credit is not evidenced in Bank Statements such cases shall be referred to credit call.

Note:  Negative Profile Customers shall not be approved under NIP.

Agriculture Income Case: Max. Net LTV will be 80 % subject to Proof of Land records evidencing the ownership of land in Customer name. In case of Parental Ownership, they should be taken as Co-applicant. The value of Land should be not less than Rs.4Lakh (market Value). Government guideline value for the land should be verified with proper documents and market value should be verified and certified by Sales Manager. Copy of these land documents to be taken as part of loan documentation after verifying the originals by the SM/RO.

Average Bank Balance: For computation average bank balance, the balance on 5^th, 15^th and 25^th of the month in the bank statement for 3months in case of income proof and 3 months in case of NIP and average balance to be arrived at by dividing the total by 9 for income proof and 18 for NIP case. 

Minimum average Bank Balance shall be equal to One Month EMI amount of the proposed Loan.

Less than 70% LTV we can take front copy of banking in owned house cases only.

Banking Norms: Regular transactions in Bank statement to be checked for both Salaried and Self-employed Customers.  More than two cheque bounce in 3 months is to be rejected. In case of NIP cases more than three cheque bounce in 6 months period is to be rejected. We shall not consider the case if the cheque bounce is for any loan repayment with other banks or financial institution.

New Bank account: It is allowed with 80% LTV only as per the conditions specified in the Credit delegation matrix. In Other cases, New Bank account shall not be allowed.

MAXIMUM NET LOAN AMOUNT:

• Maximum Net Loan Amount below Rs.80000/- can be approved by JE/Head
• Net Loan of Rs. 80000/-to 100000 shall be approved only by Regional Business Head.
• Net Loan more than Rs.100000/- Shall be refereed to Executive Director Only. 

EMPLOYMENT / BUSINESS STABILITY

• Salaried Individual – Should be a confirmed Employee with minimum of 6 Months 

Service with the present Employer.

• Self Employed – With Min 1 Year of Current Business. In case of Customers operating the biz at his/her residence (Residence cum Office) then we shall also check the residential and biz stability at that place by taking proper documentary proof as mentioned in the policy.

RESEDENTIAL STABILITY:

Residence Stability in current Address is to be Min 1 year compulsory. If communication address is differed from Permanent address, FI / TVR has to be done for both the address.

MIN. IRR (INCLUDING PROCESSING FEE)

REGION

IRR

North India

26%

LOAN TENOR

Minimum Loan Tenure shall be 6 months. (Maximum 2 advance EMI can be taken for 12 months Loan which means the balance Loan tenure shall be 10 months after adv. EMI.) 

Maximum Loan Tenure shall be 36 Months. 

1. Installment to Net salary/Income-shall not be more than one 30% (after considering all loan commitments (existing loans/credit card and proposed new loan in MGF). 

GEOGRAPHICAL LIMITATION

The geographical area of Operations of a Centre / R.O. should be such that there is a viable cluster of customers (existing / potential) and the place is easily accessible all through the year. The customer should reside within 35 KMs radius of the Centre Point). 

NEW CENTRE /SUB LOCATION

New Centre: Regional Business Head approval to be obtained if any new Centre to be created in system to do biz with authorized Main/Sub Dealers located beyond 35km radius from the existing Centre office.

In case of new Centre there should be proper Centre office set up with infrastructure and manpower to handle the biz.  

SUB LOCATION 

Where the Main dealer or Sub dealer is located within 20-30km radius of the existing main Centre office but the Customer residence is beyond the geo limit of the Centre then we can create a new sub location Centre which shall be attached to the existing main Centre.

Regional Business Head’s approval to be obtained to create new sub location unit in system. Minimum man power i.e., Sales and Recovery /FI staff should be appointed for the Sub location Centre which may be operated from the dealer point. Geo Limit for doing biz from shall not exceed 20 km from the sub location Office. 

Creation of any New Centre or Sub Location Unit shall be done only after proper study of biz potential for MGF with proper Centre enrollment form duly filled and approved by Regional Business Head & Management as per the process.

AUTHORIZED MAIN/SUB DEALER:

• Business can be done only with authorized Main/Sub Dealers as certified and confirmed by the Manufacturer. Only authorized Main/sub dealers can be enrolled in our system. 
• Payment can be made directly to the authorized Main/sub dealers based on their invoice for the biz. Done through them.

MULTIPLE FINANCE: Lending to existing Customers is allowed only with the following conditions.

1. Existing loan track record in MGF should be clean without cheque bounces or late payments. More than one cheque bounce in 6 months period should be rejected. If one cheque Bounce found in 6 months period, payment for the same with ODC and BC should have been paid within the same month of the cheque Bounce. Cheque Bounce reason to be analyzed for any critical issues which should be avoided.
2.  If more than 2 cheque bounce found in the entire loan period the case should be rejected.
3. Existing loan should not have any arrears at the time of processing the new loan.
4. The total installment amount (existing loans with MGF and other Institutions, credit card and the proposed new loan EMI with MGF) shall not be more than 30% of the net salary or net income of the Customer.
5. Customer should have paid minimum 12 EMIs (with no arrears) or 40% of the existing loan amount before applying for the new loan.
6. If the Customer is applying for loan to finance same product (for example TW customer coming for one more TW loan), we should verify the end user of the product. If the product to be used for gifting or giving to third party then loan should be rejected.
7. Multiple loans shall not be given to Negative profile Customer and NIP cases. 
8. Multiple finance shall be given only for Customers residing in Own House Property.
9. Proper documentation as per policy should be obtained as per Credit Policy for the new loan and verify the Customer details in the system for the existing loan. If any discrepancies found in Customer address or employment, KYC doc details same shall be investigated to confirm the correctness of the documents before processing the new loan.
10. FI shall be done by the Sales Manager or Recovery Head or FI head for any multiple finance case.
11. TVR shall be done by Credit Head with the Customer, Office/Biz  and 2 references where multiple funding.

FIELD INVESTIGATION (FI)

• For cases (other than Mopeds) with less than Rs.70000/- Net Loan amount, Office FI can be waived.
• For New Loan more than 70000/- office/biz FI is mandatory.
  •  Residence FI, FI Neighbor checks and TVR (office, residence and reference) is mandatory for all cases. 

FI shall be done for both Main applicant and Co applicant/Guarantor and separate reports should be given by the FI executive.

Repayment Mode: PDCs or NACH shall be given for entire loan tenor. 

In case of PDC only MICR/Core banking /At Par Cheques can be accepted.  Post-office / Cooperative bank/ gramin bank Cheques not to be accepted, except those Co-op banks which are in the acceptable locations as per the list provided to the region from time to time by HO Credit.

NACH can be accepted only in specified NACH locations as per the RBI list circulated for each region from time to time.

CREDIT APPROVAL PROCESS

1. For all log ins Centre Executive and Credit Officer shall check Customer details ( as per the log in cloud format given ) .In DEDUPE in all Search Field like name ,mobile no , address, office address in order to determine the existing exposure if any or any delinquency.

1. TVR should be done at Centre office – Credit Dept as per the policy and the details should be checked by the Credit Dept before processing the loan. TVR should be done only with the customer and for the Reference provided by the customer. TVR with Office or Business shall also be done by Credit and the report should be updated in Cloud.
2. Credit should do FI allocation to initiate FI for each log in. 

• FI executive shall complete the FI verification as per the process.
• FI shall check the original KYC documents at the Customer’s place, location and certify the same on the copy of the KYC documents given in loan file.

• FI report should be duly completed and signed by the FI Executive, agency and same to be approved by the Sales manager & Credit Manager.
• This FI report should be checked by Centre JE and updated in Cloud system.
  • FI incentive: Incentive to FI executives shall be paid only based on number of FIs captured in Cloud system. Any negative FIs not captured in system shall not be considered for incentive payment.

1. If TVR/FI and Internal dedupe is positive then Centre JE shall collect Application forms and Agreement duly filled & signed by the Customer and check for Accuracy & completeness including signature verification on all the documents. Customer signature on loan documents and PDC/NACH shall be verified with one of the KYC documents provided by the Customer.

1.  Any incomplete or incorrect application forms should be rectified and completed by JE before sending the same to HO Credit. 

1. All files received from Centre shall be checked by HO Credit strictly as per Credit Policy norms and approval to be given as per Policy. 

1. For any deviations in files Credit shall refer to the Delegation Matrix provided in the annexure and approval can be given accordingly. If any deviation is not allowed in the delegation matrix or beyond the limit given in the matrix, Credit should reject such cases and return the files back to the Centre. 

1. Rejections: Centre Executive shall capture all rejected log in (FI /TVR/De dupe negative) cases   in Cloud system. Separate file should be kept for all rejected cases month wise for any future reference. For cases sent to HO Credit and files rejected on documentation or any other deviation reasons, such rejections shall be updated in UNO by Credit team and the file should be sent back to Centre for their safe Custody.
2. Credit KRA (Key Result Areas) given below for maintaining high quality portfolio. 

1. Overall CE (Collection Efficiency) shall be 95 % for new portfolio Business.
2. 1^st, 2nd and 3^rd PDC bounce percentage shall be <10%.
3. 100% collection should be achieved in 1^st,2^nd and 3^rd EMIs.
4. Non-Starters should be nil.
5. RC collection should be 100%. Within 60 days from loan disbursement date.
6. Nil documentation discrepancy.

CREDIT DOCUMENTATION TO BE CHECKED BY THE CENTRE CREDIT OFFICER

1. KYC Documents
2. Address Proof:

• Voter id
• Driving License
• Passport
• Latest Property tax receipt

Latest Telephone or Electricity bill

Water bill 

• Rental agreement with Gas bill receipt or Electricity bill in case rented house. In this case address proof to be taken for the Permanent address with one of the above documents.
• In case of own house where property is in the name of spouse or parent, we should take relationship proof for evidence. We can take Ration card or Voter id or Pan Card or Driving License or Passport for this purpose.
• The above documents original shall be verified by ME/FI executive and original seen certification to be attested on the copy of the document with name and staff no.
•  All documents shall be self-attested by the Customer.
• Customer signature to be verified with one of the above documents submitted.

1. ID Proof

• Voter id
• Driving License
• Passport
• Pan Card
• For Government or Public Sector employees, valid Staff ID can be taken.
• The above documents original shall be verified by ME/FI executive and original seen certification to be attested on the copy of the document with name and staff no.
•  All documents shall be self-attested by the Customer.
• Customer signature to be verified with one of the above documents submitted.
• Date of birth of the Customer shall be verified in the above-mentioned documents. If any discrepancy is found the Customer shall provide School Leaving Certificate or SSLC mark sheet as DOB proof.

1. Ownership Stability document: Latest original EB Bill/Water bill/House tax/Property paper for last 3 months compulsory for own house proof. 

In case of rented house valid rental agreement with latest Gas bill or Tele phone bill is mandatory along with permanent address proof.

1. Bank Statement: For more than 70% LTV cases, Last 1 months Original Bank Statements for Income proof cases and 3 months original Bank Statements for NIP cases to be obtained. Good banking and average bank balance conditions to be satisfied.

Net Downloaded statement will not to be accepted. In case of manual bank statements/pass book provided by the Bank, we can take copies of the bank statement /pass book duly stamped and signed by bank &verified original by FI /SM/RO.

1. Income Proof and Employment/biz stability: For Salaried Customer latest 3 months Original Salary/Pay Slip confirming the date of joining, Salary & Designation, duly stamped by HR dept giving the Gross salary, deductions and net salary details.

For Self-employed biz class Last 2-year IT Return (SARAL copy) duly verified and seen original by RO. We may also accept the VAT/GST return copy (original seen), as income proof with max. 5 percentages calculated as profit of the business.

1. PDCs/NACH: 

PDC: Details on the PDC should be checked for Date, Mufin Green Finance Limited

stamp, Amt in Figures and Words & Signatures of the customer. On the reverse side of each PDC, Branch, Customer Name, Agreement / Proposal No should be filled by the branch and same to be verified by the Zone Credit Dept. Cheque Book cover leaf mentioning Customer name, account number and cheque serial numbers should be collected without fail and verified for correctness.

Note: AS per the recent RBI circular Prohibiting alterations / corrections on cheques. No changes / corrections should be carried out on the cheques (other than for date validation purposes, if required). For any change in the payee’s name, courtesy amount (amount in figures) or legal amount (amount in words), etc., fresh cheque forms should be used by customers. This would help banks to identify and control fraudulent alterations

NACH: In Case of NACH the first EMI shall be received through PDC from the same bank A/c where the salary is credited. NACH mandate shall be obtained from the Salary or income account from which the 1^st PDC is obtained from the Customer. Security cheques shall be obtained as per the process given for NACH. (NACH process manual to be referred for better understanding which we will get from banking partner)

1. Dealer Invoice: Original Computerized Invoice from the Dealer dated within 1 month from the Proposal date obtained before disbursement of loan. Asset details and Customer details shall be verified in the Invoice. Manual invoice from dealers is not acceptable. In exceptional circumstances if dealer is not able to provide computerized invoice, we may accept manual invoice for the loan only with the confirmation from the Manufacturer with approval.
2. Margin Money receipt: Original receipt from the Dealer for margin money/down payment made by the Customer should be obtained with proper details and stamp and signature of the Dealer.
3. h. Insurance Policy: Insurance policy to be obtained for the vehicle. Asset and customer details and Mufin Green Finance Limited name endorsement on the Policy to be checked. 

POST DISBURSEMENT DOCUMENT

RC original or Copy (original verified) to be obtained from the Customer and Branch Credit executive shall verify asset details (asset financed by MGF), Customer details and MGF hypothecation before updating the same in the system.

ANNUXURE – 1

1. NEGATIVE PROFILES TO BE AVOIDED:

• Politician
• Lawyer / Advocate (Except High Court and Supreme Court lawyer)
• Free-lance Journalist
• Bar Owner (including Bar cum Restaurant).
• DSA and all other Distribution channels like Collection Agents, Repossession Agents, etc.
• Employee of all distribution channels (DSA/DEALER/FI Employees, etc –across financiers)
• Time Share and Motel & its employees.
• Plantation company
• HUFs, Trusts (un-registered), Credit Societies.
• Contractual employees
• Dotcom companies
• BIFR companies. 
• Companies which have defaulted to Banks/Institutions/Stock Exchanges/Registrar of Companies
• Slaughter food profiles to be rejected.

An applicant whose blood relative belong to negative profiles, shall be considered, as belonging to negative profile and it should be evaluated likewise.

1. CAUTION PROFILES

• Unauthorized Chit Funds / Nidhi Companies. 
• Film Industry Professionals.
• Drivers/Conductors/Sweepers/Peons/Ward boys. (Drivers/Conductors in Government employment are excluded)
• Security Services.
• Video Parlor Operators. 
• Cable Operators.
• Liquor / Wine Merchants.
• Std Booth Operators. 
• Start Up Companies (Less Than 6 Months Old)
• Real Estate Agent / Builders / Contractors / Building Material Suppliers.

Manpower Consultants.

Contents	Authority
Deviation Matrix	SM/RO	Credit Executive	Credit Manager	RBM	Directors
AGE	<21 & >65	N	N	N	N	Y
LTV	Upto 10%	R	Upto 2%	Upto 5%	Upto 10%	More than 10%
Agriculture Income	N	N	N	N	N	N
Average Bank Balance	Y	R	Y	Y	Y	Y
New Bank account	Y	R	N	Y	Y	Y
MAXIMUM NET LOAN AMOUNT	Y	R	N	Upto 5%	Upto 10%	More than 10%
BUSINESS STABILITY	Y	R	N	Y	Y	Y
RESIDENTIAL STABILITY	Y	R	N	Y	Y	Y
IRR	Y	R	N	N	Y	Y
Loan Tenure	Y	R	N	N	Y	Y
Geographical Limitation	Y	R	N	N	N	N
Multiple Finance	Y	R	N	N	Y	Y
Field Investigation	Y	R	Y	Y	Y	Y
PDCs or NACH	N	N	N	N	N	N
TVR	Y	R	Y	Y	Y	Y
Dealer Invoice	Y	R	N	N	Y	Y
Insurance	Y	R	N	N	Y	Y
Margin Money	Y	R	N	N	Y	Y
RC original or Copy	Y	R	N	Y	Y	Y
Negative Profiles	Y	R	N	Y	Y	Y
Caution Profile	Y	R	N	Y	Y	Y

Note: -Only Deferral approval allowed if any urgency, but credit should be responsible to collect same within 7 days of disbursal. Loan amount should not be more than 120% of IDV IN Low segment and 100% in high segment bikes.

0% Scheme-TW Loan
Loan Amount	Period (Months)	ROI	Net PF	GST@18%	Total PF with GST	EMI	Disbursal	Gross IRR	Actual Interest (P.M.)	Flat ROI-(p.a)%
20000	8	0%	2627	472.86	3100	2500	16900	37.49	328	23.3
20000	10	0%	2966	533.88	3500	2000	16500	35.2	297	21.6
20000	12	0%	3051	549.18	3600	1667	16400	30.76	254	18.6
30000	8	0%	3136	564.48	3700	3750	26300	30.69	392	17.9
30000	10	0%	3390	610.2	4000	3000	26000	30.62	339	15.6
30000	12	0%	4407	793.26	5200	2500	24800	29.09	367	17.8
40000	8	0%	4322	777.96	5100	5000	34900	30.69	540	18.6
40000	10	0%	4491.5	808.47	5300	4000	34700	30.62	449	15.5
40000	12	0%	5254	945.72	6200	3334	33800	30.76	438	15.5

TW ROI Scheme Chart
Loan Amount	Period (Months)	Advance-0(%)	Advance-1(%)
80000	12	13.99	11.49
80000	15	13.49	11.99
80000	18	13.49	11.99
80000	21	13.49	11.99
80000	24	13.49	12.49
80000	30	14.49	12.49
80000	30	14.49	12.49
PF & Stamp Duty (With GST)	Amount
Delhi/Dehradun/NCR	3000
Rudrapur/Mathura	3200
Kotdwar	3500
Loan Shield	As per Insurance Company-Minimum 350/-

Note: –

1.PF upto -80000 will be same.
2.More than 80000 PF amount will be directly 4.5%
3.PF will be differed if it will be NIL payout scheme to dealer 
4.Less than 2% PF not allowed in any case except special festival scheme.
5. Special scheme will be approved by only Directors.