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0294-2412609

srgsecurities@gmail.com

LOAN PROCEDURE

Our focus is to simplify, and shorten the process of getting loan. The loan approval & Disbursement process mainly consists of four simple steps:

  • Step 1 –Appraisal
  • Step 2 - Security Evaluation
  • Step 3 - Loan Sanction
  • Step 4- Disbursement


STEP I : APPRAISAL

  • 1. Personal Interview : All the prospective borrowers are interviewed personally by the Manager. He is then explained the complete procedure for availing loan & all the necessary documents are called for.
  • 2. Eligibility Status Check : A thorough review of documents that determine the eligibility of the prospective borrower, including proof of identity, address and income (such as voter’s ID, PAN card, salary certificates, bank statements, income-tax returns, audited books of accounts), is carried out. Further, an Equifax Credit Information check/ CIBIL check is also performed simultaneously on the prospective borrower on their credit repayment habits.
  • 3. Submission of documents : Once the proposed borrower meets the basic eligibility criteria, an application form containing various details including details under KYC norms is prepared and submitted by the applicant. Once this process is complete, a scrutiny of the documents submitted by the proposed borrowers was done by loan department.
  • 4. Verification / Scrutiny : For prospective borrowers, our personnel visit the business premises and examine and ascertain whether the business is generating sufficient income to repay the loans. Similarly, for prospective salaried borrowers, our personnel visit the office of the prospective borrower for verification.

STEP II – SECURITY EVALUATION

  • 1. Technical Evaluation : Our personnel obtain a technical valuation report from an internal valuers/independent and empanelled valuer for the asset to be financed. While the valuers provide an independent assessment of the current market value, our personnel generally adopt a conservative approach in valuing the asset.

STEP III – LOAN SANCTION

  • 1. Determination of the amount of Loan to be sanctioned : Upon satisfactory completion of the process summarized above, our personnel determine the amount of loan to be granted to the prospective borrower. Key determinants of the amount of loan that can be sanctioned are the IIR and the LTV. IIR is the ratio of the monthly installment to the total monthly income of the borrower. LTV is the ratio of the loan value to the appraised value of the security. The borrower is eligible to take a loan up to the amount as arrived by a standardized calculation.
  • 2. Preparation of the Loan Proposal : Based on the above-mentioned scrutiny procedures, a loan proposal is prepared. The loan proposal includes a loan appraisal note, evaluation summary, and inspection and valuation report. If the loan proposal is satisfactory, it is forwarded by officials with recommendation on the loan amount. The interest rate to be levied on the prospective borrower is based on a Interest chart which is based on criteria such as the applicant’s income profile, capacity to repay the loan, value of the property, marketability of the property, family background, etc.
  • 3. Scrutiny of the Loan Proposal : Loan proposals are scrutinized by head office officials.
  • 4. Approval / Sanction of the Proposed Loan : If the proposal meets with the required criteria, then the loan is approved by the sanctioning authority.
  • 5. Preparation of Loan sanction letter : Pursuant to sanction of the loan by the head office, a loan sanction letter with the terms of the sanction is communicated to the borrower and at this point the borrower is required to submit original documents in relation to the security.
  • 6. Gurantor’s credit worthiness : A guarantor, who should be a creditworthy person either a businessmen or a government employee, is also asked to be a party to the contract & liable to the company in case of any default in repayment of loan installment by the borrower.

STEP IV – LOAN DISBURSEMENT

  • 1. Execution of Loan Agreement and Disbursement of Loan: The loan amount is disbursed to the borrower only after the loan agreement is executed and the agreement is signed. Prior to loan disbursement, our Company also completes other formalities such as collection of post dated cheques from borrowers in respect of the monthly installments, etc.