PROJECT REPORT

ON

STUDY ON PROPERT LOANS

OF
SBFC PVT LTD

Submitted to: Submitted by:

Mr Mukesh Verma Chahat Sood

(branch manager)
Introduction
. Birth of SBFC.

On 28th September 2017 we did a Slump Sale buyout of the retail business of
Karvy Financial Services. We transferred the branches and employees into SBFC
and bought out a handpicked retail secured portfolio. Thus was born a unique
startup with a eight year history! The management team although comprises of
individuals with stellar track records in Banks and Leading NBFCs who have
come in because they want to co-write the Small Business FinCredit story.
SBFC Approach

Truth sometimes hides in plain sight. These businesses are ubiquitous, spread
throughout the country and hence tough to reach. These businesses are often
extensions of individuals with cash flow ebbing and flowing to and fro from the
individual and the business she runs. As a lender one is trying to understand the
ability and willingness to pay and usually what one relies on to get there is past
performance and present cash flow position of the business. This presents another
challenge. The proposals here are often what we call Thin File. The amount of
credible information that you can rely on is limited and we need to go above and
beyond to really understand the business, the cash flow, the need, the
sustainability and the Individual’s intention.
We also believe that we do not sell a product. We are in the relationship business.
Hence, we do not operate through third party agents to source business but our
officers directly reach out to the customers and handle the relationship pre and
post lending.
We are not in the business of
distribution, we are in the business of
risk management. We believe that if we
can understand the customer, the need,
the cash flows and the reputation of the
customer we are evaluating, we will
write superior credit. Yet, all this need
not take time. Its a misnomer to believe
that the more time you take to evaluate
a proposal the better would be the
understanding. We believe that if you know what you are looking for, you achieve
quality with speed. A quick “No” is often better than a delayed “Yes."
What’s under SBFC ?
We operate on a Phygital Model. We extensively use technology but we also
believe that human touch is critical to understanding and underwriting credit to
this customer segment. We therefore have an expanding branch network with
boots on the ground in 16 states with over 80 branches in 51 Indian Cities. We
have also taken the entire process from application to disbursal Digital through
our www.sbfc.com using our in-House LOS/App called LeviOSa. (Meaning
Light). We also understand that the small customer may not yet be comfortable
with this technology and hence also operate on an Assisted Digital Model where
our Loan Officers have the app through which they digitalise the application
process at the office/residence of the customer. Leviosa is integrated at the back
end with India Stack, Scorecards, Banking and Tax papers check enabling our
officer to give an instant sanction. No files, no paperwork, no we will get back to
you later.

We understand that the Micro Enterprise is light in financial data and hence we
use various non financial alternative data sources to arrive at a credit decision. It
is highly complicated to keep anything easy. At the back end we have deployed
data warehouse and Back-end Analytical Intelligence and use integrated straight
through processes to deliver an easy experience to the customer. What is unique
to us is the back end intelligence we have built in our Direct To Customer(D2C)
approach. We crunch hundreds of data points to arrive at segmental
understanding of these small businesses and identify potential good credit in areas
where we have a branch. The machine identifies, the human executes. The car is
simple to drive, what's below the bonnet drives that simplicity
What makes SBFC?
Financial Strength makes us who we are.

-SBFC has begun its journey with strong Financial Muscle. We have more
capital than what is needed to start a scheduled bank. In a business whose raw
material is money, this the ability to have financial muscle is critical. Our
Investors, The Clermont Group and Arpwood share the vision of building a
significant Financial Institution.

People make us who we are.

- The assets of SBFC walk out of the door at the close of play each day and
what they do within the time they clock in is what the company will deliver on.
We have taken care to hand pick a team that is the best in business right down
to the regional and branch level. We focus on their constant training and
facilitate them to deliver excellence and innovation through integrity.

Risk Management & Operational processes make who we are.

- We understand that a loan is not over till the last EMI comes back. For us,
Business, Credit, Operations and Collections are four distinctly different
verticals. They report independently all the way up to ensure no conflict and
adequate checks and balances in the system. At SBFC we believe in controlled
aggression. A strong Risk and Compliance culture is at the core of our business
governance.

Analytical strength makes us who we are.

-The way we crunch data at the back end to understand the cash flows of
various customer segments and their unique characteristic gives us an ability to
deliver speed with higher accuracy. We are sector agnostic and spread our risk
very granularly across segments and geography to ensure lesser risk of harsh
winds that may blow from sector to sector over time.

Technology makes us who we are.

- We strongly believe that we can make “Loans Easy” only if the process is
made easier for employees and customers. With Mobile first approach, our
employees are empowered with the Mobile App for the Loan Origination. Our
Loan Origination System, LeviOSa, is a Mobile and Web application, strong
micro-services based workflow engine, integrated with many interfaces online
for faster processing and effective credit decisioning. Our analytical rule engine
helps us in faster credit decisioning and hence the quicker turn around time to
customers. With our Mobile Customer App, we are providing the power of self-
service in the hands of the customers.
MERGER OF SBFC AND ICICI BANK

January 04, 2019

Offers loan against property to MSMEs worth upto Rs. 1 crore
First-of-its-kind programme by a bank and a NBFC
Mumbai: ICICI Bank today announced that it has signed a Memorandum of
Understanding (MoU) with Small Business FinCredit India Pvt. Ltd. (SBFC), a
systemically important Non-Banking Finance Company for entrepreneurs, to
jointly provide credit to MSMEs. The partnership has been forged under the
aegis of RBI’s circular dated September 21, 2018 that permits banks to engage
with a Non-Banking Financial Company (NBFC) to co-originate loans for the
creation of priority sector assets.

The agreement enables MSMEs to obtain loans upto Rs. 1 crore for a tenure of
15 years. This is a first-of-its-kind lending programme in the country between a
bank and a NBFC. Under this arrangement, ICICI Bank will co-originate loan
against property with SBFC at a mutually agreed ratio. The flow of funds from
ICICI Bank will help customers to aid their businesses in a seamless manner.

PROJECT REPORT

Project Assigned :

Managing customers data and study of loan procedure

I have been appointed as a executive trainee under credit and risk department.
My role under this department was to work with the important records and
sensitive information regarding the clients. This includes their income
statements, credit worthiness and other important documents required for
sanctioning of loans.
OBJECTIVES OF THE STUDY
• To get familiar with the procedure of sanctioning loans.

• To know the different types of loans offered by the company.

• To learn how to deal with customers

• To check the creditworthiness of the clients.

RESPONSIBILITIES

1. Maintain the documents

The main task under this was to maintain the documents of every client. The
documents required were KYC of clients, ITR , bank statements of clients of
past 6 months etc.

2. Fill the forms

Filling the forms was the primary responsibility undertaken by me. This
involves filling the application form of the customers, noting each and every
detail correctly so that it could help maintain the records.
3. Interacting with customers
Another task was to interact with customers on calls. Collect data from them
about their assets, income level and the reasons for which they want loans. A
Cam summary is prepared after collecting this information from the
customers.

4. Study and record data

To study the data of the customers and noting down the errors in the list.
Then record these data in the company’s software( levio’sa). This involves
recording their personal information, bank statements recording debit and
credit of the customers etc.

DAY WISE PROGRESS

DAY 1: (Orientation)

The first day at work began with the warm welcome by the company. My guide
introduced me to the staff and made me feel comfortable in the environment. At
the very first day I was made familiarize with the different departments in the
organization and its working conditions. Also a brief introduction was given
regarding the procedures involved in the loan sanctioning.

DAY 2-5

The next day i was given different case files to study the different documents
we need to attach provided by the customer. Also arrangement of documents
were to be done accordingly from case arriving to sanctioning of the case which
involves various steps in between them.

DAY 5-15
In these days my work was to fill the application forms of the customers with
accurate details. The application forms included the official details of customers
like Pan card, Aadhar card, Income statements etc. The trainer also discussed
various aspects the employee should follow while filling the forms.

DAY 15-20

I learned how to interact with the customers and collect information from them.
Also I learned to calculate the cibil scores of the customers which tells us about
the credit worthiness of the customers. I also came across different policies of
the company which they follow while sanctioning the loans.

Day 20-25
As I was working in credit department my next task was to do calling and
collect the basic information from the customers regarding the purpose of their
loan, the business, their family background, locality, bank information etc.

Day 25-35
Now it was the time when I worked on the software. I use to enter the details of
the customers in the software. Check the debit and credit balances of the
customers from their past bank records and check the credit worthiness for the
same.

Day 35-45
In this time I was supposed to make the records of the customers and manage
the files after the sanctioning of the loans. Also collect feedback from the
customers about their experience in the company and make notes of the same.

CHALLENGES

• Lack of customer cooperation

There was a lack of cooperation from the customer side as they hesitate to
share their confidential information with us. Some customers are very stubborn
and are not true about the information they are passing us.

• Less work as intern

Being an intern less responsibilities were given to me. Less technical work was
passed to me and mostly the form filling was done by my side.
LEARNING OUTCOMES

1. Knowledge about the organisations working

2. Learned to calculate the cibil score

3. Dealing with customers

4. Knowledge about the legal documents involved

5. Knowing company’s policies for sanctioning loans