Credit Assessment Methodology

The objective of the credit appraisal process is to evaluate the borrower’s repayment capacity on a wide range of parameters detailed below. These parameters enable us to ascertain the key pillars of credit namely ability, intention, collectability.

The below are broad parameters of the methodology for credit evaluation

Primary Eligibility Criteria

• 1. Minimum age of applicant: 18 years.
• 2. Maximum age of applicant at loan maturity: 65 years.
• 3. Employment: Salaried and Self Employed with monthly income of INR 18,000.
• 4. CIBIL : NTC and Min Score 650.

KYC Check / Document Validation

• 1. Proof of Identity.
• 2. Proof of Address.
• 3. Income Documents and Bank Statement, as applicable.
• 4. Any other document as requested at the time of credit appraisal.

Credit Decisioning & Evaluation

An in-depth analysis is done to evaluate the credit worthiness for all the applications. Based on Liquiloans’ (NDX P2P Private Limited) proprietary in-house algorithm and underwriting, credit decisions are made based on the below parameters :

• 1. Personal and Demographic profile.
• 2. Family profile.
• 3. Employment and Income Profiling.
• 4. CIBIL Behavior and Repayment History.
• 5. Analysis of tradelines in CIBIL.
• 6. Banking Behavior.
• 7. Financial Parameters : FOIR, Leverage Levels, Loan to Income Ratios, etc.
• 8. Using LL Risk Score to categorize borrowers.

Risk Score	Bureau	Monthly Income	FOIR#
1	Above 725	Income >= 50K	FOIR <= 80
2	Above 725	Income >= 30K and < 50K	FOIR <= 80
3	Above 725	Income >= 10K and < 30K	FOIR <= 80
4	Above 725	Income >= 10K	FOIR > 80
5	651 to 775 OR NTC*	Income >= 30K	FOIR <= 80
6	651 to 775 OR NTC	Income >= 10K and < 30K	FOIR <= 80
7	651 to 775 OR NTC	Income >= 10K	FOIR > 80
8	551 to 650	Income >= 30K	FOIR <= 80
9	551 to 650	Income >= 10K and < 30K	FOIR <= 80
10	551 to 650	Income >= 10K	FOIR > 80
NTC = New To Credit (Bureau < 220)
#FOIR = Fixed Obligations to Income Ratio

• 9. Tele verification / physical verification.