Policy For Commerical Vehicle

SHEBA PROPERTIES LTD
Ref No: RI/06-17/00667/NW-667

Date:06 June 2017
Circular
Consolidated Procedure Note for CV & PV Finance
Department Issuing the Circular Risk.

Approved by Board of Directors.
Subject Procedure Note for CV and PV Finance.
Date of Effectiveness Immediate.
Person Contact Point for Clarification Shashank Saurabh
I-Think Techno Campus Building A, 2nd Floor, Off Pokhran Road 2, Thane (West), 400 601.
Tel 91 22 6181 5400 Fax 91 22 6181 5700 website www.tmf.co.in CIN U45200MH1989PLC050444.
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Registered Office: 10 Floor 106 A and B Maker Chambers III, Nariman Point, Mumbai 400 021.
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Procedure Note for MHCV & ICV Finance Page 1 of 37
Background
Subsequent to the shifting of TMFL business to Sheba Properties Ltd, Risk Department has
consolidated the existing Procedure Note for various assets. This note is basically a consolidation
of the existing note with the updation of a few points as part of annual updation process.
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Procedure Note for CV & PV Finance Page 2 of 37
Table of Contents
Sr Content Page
No No
1. Objective and Applicability of the Note 4
2. Customer Segment Definitions 5-6
3. Common Credit Norms 7-11
4. Customer Segmental Norms 12-13
5. LTV Matrix 14-15
6. Exposure Matrix 16-17
7. Deviation Matrix – Bureau (CIBIL), Dedupe, FI and Repayment Track Record (RTR) 18-26
8. Funding of Bus to School 27-28
9. Credit Approval 29
10. Documents and Validation 30-33
11. Validity of Documents and Approval 34
12. Annexure: Methodology for calculation of Banking 35-36
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1. Objective and Applicability of the Note
Objective:
The objective of this note is to standardize the Procedure Notes into a single consolidated Note for ease of reference
& implementation. In order to build a healthy loan portfolio through acquisition of customers based on standardized
risk assessment parameters coupled with faster loan processing, a robust Procedure Note is important and this Note
addresses the same.
Applicability of the Note:
Parameter Norm
Eligible Funding Funding for purchase of CV & PV manufactured by Tata Motors Ltd (TML).
This Circular is applicable for sourcing in Branches and is not applicable for Spokes. Existing Spoke Circular (Circular
No. RI-05-16-00449-NW-449) will continue to be applicable. However, any reference in Spoke Circular w.r.t.
Procedure Note will now be a reference to this Note.
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2. Customer Segmentation
2.1 Customer Segmentation for CV

Segment Segment Definition
FTU 1  0 CV owner purchasing the CV for the first time and having at least 2 years old Transport
(FTU Driving License (DL).
Experience)
FTU 2  0 CV owner purchasing the CV for the first time AND satisfying any 1 of the following
(FTU - Others) conditions:
 Property Ownership (Property should be Residential / Commercial / Agricultural Land
or a combination of these in the name of borrower, spouse or his blood relatives) OR
 Valid DL but not satisfying DL parameters of FTU 1 i.e.
 Non Transport / LMV DL Or Transport DL < 2 years old OR
 Average Bank Balance >= 1.5 times of proposed EMI in last 6 months OR
 Track based guarantor (RTR norms as per RTR Matrix) OR
 Annual Income more than 1.5 times of annual total EMI on proposed loan as well as
other running loans (reflecting as per ITR acknowledgement & computation of
income / Bank Credits with narration related “Salary” / Form 16 from the Employer /
salary slips).
SRT 1  1 or 2 CV owner with Repayment Track Record (as specified in RTR Section).
(SUB RTL RTR)
SRT 2  1 or 2 CV owner for at least 12 months without Repayment Track Record.
(SUB RTL NTR)
Retail  Borrower owning 3-9 CV, minimum 2 vehicles to be owned for at least 1 year.
 Customers engaged in transportation owning less than 3 CVs but with TO of Rs 1 Cr – Rs 2 Cr
(freight booking / commission agents) can be classified as Retail.
Strategic  Borrower owning 10- 25 vehicles, minimum 5 vehicles to be owned for at least 2 years OR
 Non-Individual entity engaged in Transportation satisfying following conditions:
 Public Limited Company.
 Partnership Firm / Private Ltd Co with Turn Over Rs 2-10 Cr.
 Proprietorship Firm with Turn Over Rs. 2-10 Cr.
Super Strategic  Borrower owning >25 vehicles, minimum 10 vehicles to be owned for at least 2 years OR
 Non-Individual entity engaged in Transportation satisfying following conditions:
 Public Limited Company.
 Partnership Firm / Private Ltd Co with Turn Over > Rs 10 Cr.
 Proprietorship Firm with Turn Over > Rs 10 Cr.
Retail Captive  Core business activity is other than transportation and end use of vehicle is primarily for
captive purpose i.e. transporting own goods /employees AND
 Business profile and model applied should be matched AND
 Minimum 2 years experience to be validated based on core business activity. Experience to be
validated through documents such as Shop & Establishment Certificate / Bank Statement of
Current Account / Proofs of registration with Service Tax, Sales Tax, Excise Tax Authorities / ITR
showing Business Income.
Strategic  Captive profile (Core business activity is other than transportation) with last 2 years financials
Captive having turnover > Rs 2 Cr AND
 End use of vehicle is for transporting own goods/employee. Business profile and model
applied should be matched AND
 Experience & Income to be validated based on core business activity.
 Repayment Track Record of approved financier of 12 months for any asset (RTR deviation at
RCM level).
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Note:
 MHCV vehicles with age up to 10 years and LCV/ICV/SCV assets with age up to 8 years can be considered as valid
fleet.
 Valid CV ownership for Fleet & Track consideration - MHCV (Multi & Single Axle) for funding on MHCV Trailer,
ICV/MHCV Single Axle for funding on MHCV-Multi Axle, LCV/ICV/MHCV for funding on MHCV-Single Axle, Pickups,
SCV & LCV for ICV, Pickups & SCV for LCV, 3W Goods for funding on Ace and 3W Passenger / PV for funding on Magic
/ Iris / Winger / Venture.
Deviation for considering Bus ownership with or without track for Truck funding & vice-versa can be exercised at
RCM.
 Construction Equipment (Backhoe Loaders / Excavators / Cranes) ownership and repayment track record can be
considered for funding at SCH level.
 Customer with experience of >=2 years & with CV ownership <12 months to be appraised as FTU 1.
2.2 Customer Segment Definitions for PV

Usage of Segment Segment Definition
proposed PV
Personal Borrowers purchasing the proposed PV for personal usage.
Commercial FTU 1 Applicant with 1 owned CAR/MUV/SUV/CV-Passenger (with age < 7 years at the
time of login) owned for at least 1 year; Copy of RC is required).
FTU 2  Applicant without CAR/SUV/MUV/CV-Passenger ownership OR
 Applicant with 1 owned CAR/MUV/SUV/CV-Passenger but owned for < 1 year
OR
 Applicant with 1 owned CAR/MUV/SUV/CV-Passenger but with age > 7 years at
the time of login AND
 Applicant must satisfy any 1 of the following conditions:
 Property Ownership (Property should be Residential / Commercial /
Agricultural Land or a combination of these in the name of borrower,
spouse or his blood relatives) OR
 Valid DL OR
 Track based guarantor OR
 Average Bank Balance >= 1.5 times of proposed EMI in last 6 months
OR
 Annual Income more than 1.5 times of annual EMI on proposed as well
as existing running loans (reflecting as per ITR acknowledgement &
computation of income / Bank Credits with narration related “Salary” /
Form 16 from the Employer / salary slips).
Small Fleet  Applicant with at least 2 CAR/MUV/SUV/CV-Passenger (with age < 7 years at the
Owner time of login) owned for at least 1 year; validated through RC copies of entire
fleet AND
 RTR of at least 40% of proposed exposure with minimum seasoning of 12 month
ETR/GTR/ATR.
Medium  Applicant with fleet size of 6-25 CAR/MUV/SUV/CV-Passenger (with age < 7
Fleet years at the time of login) & owning at least 3 CAR/MUV/SUV/CV-Passenger for
Operator at least 3 years; validated through minimum 6 RC copies AND
 RTR of at least 40% of proposed exposure with minimum seasoning of 12 month
ETR/GTR/ATR.
Large Fleet  Applicant with fleet size of > 25 CAR/MUV/SUV/CV-Passenger (with age < 7
Operator years at the time of login) & owning at least 10 CAR/MUV/SUV/CV-Passenger
for at least 2 years; validated through minimum 25 RC copies.
 RTR of at least 40% of proposed exposure with minimum seasoning of 12
months ETR/GTR/ATR.
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Usage of Segment Segment Definition
proposed PV
Captive Usage Applicant purchasing the proposed PV for Captive usage.
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3. Common Credit Norms: CV & PV
Parameter Norm Deviation

Basic Checks (applicable for applicant, co-applicant and guarantor):
RSPM RSPM (Risk Scoring Pricing Model) is mandatory for all Non deviatable
loan applications of FTU, SRT and Retail Captive profiles
where funding is proposed on 1 Unit of Fully Built Vehicle
or Chassis.
Application Form Application form duly filled in and signed by the Non deviatable.
authorised signatories.
Eligible Borrower Funding allowed only for Resident Indian National as No funding to Non-residents of
Categories under: India (NRI).
 Individuals, Proprietorship, Partnership Firms, Funding to HUF, Private Trust &
Companies. Society - RCM level
Funding to Public Trust –NCM /
Eligible borrowers to be categorized as per Segment Head - Credit level only with NOC
Definition norms. from Charity Commissioner. In
case NOC from Charity
Commissioner is not available,
NCM / Head - Credit can take call
on case to case basis subject to
Managing Trustee/Chairman as
Co-applicant/Guarantor.
Age (applicable  Minimum 21 years at the time of loan application. If Minimum age < 18 years: Non
for individuals) applicant age is between 18 years & 21 years, then deviatable
co-applicant (blood relative) meeting the age norm Maximum age norms not met:
should be taken. In this case there would not be any SCH.
deviation.
 Maximum 65 years at the expiry of proposed loan
tenure. If applicant is over age, then take blood
relative either as Co-applicant/Guarantor meeting
the age norms to satisfy this norm. In this case
there would not be any deviation.
KYC Norms All KYC norms as per the KYC Circular. Non deviatable.
Residence Not applicable for SCV & PV.  BCM/ACM: Stability in rented
Stability For all others, any one of the below to be satisfied by premise < 2 years but >= 6
either the applicant or co-applicant (blood relative/ months.
spouse):  SCH: Stability in rented
 Staying in owned residence OR premise < 6 months.
 Staying in residence owned by blood relative /
spouse OR
 If staying in rented / company accommodation,
then following to be satisfied:
 At least 2 years either at same address (with
proof) OR staying in the same city for at least 2
years & at different rented premises (with
proof).
 < 2 years s.t. customer having ETR / GTR track
for 12 months.
 Additionally, in case of applicant staying in
rented residence, Permanent residence address
wherever applicable to be captured.
Contactability (at Applicant must have landline connection or postpaid / Non deviatable
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residence & prepaid mobile / WLL.
office)
FI and TVR FI & TVR should be positive. Please refer FI Deviation Matrix.
FI waiver shall be as per FI waiver matrix.
Dedupe  Should be positive for every case. Please refer Deviation Matrix on
 “Not in Database” should not be considered as a Dedupe.
positive match.
Bureau (CIBIL)  Should be positive for every case. Please refer Deviation Matrix on
 “No Match” should not be considered as a positive Bureau (CIBIL).
match.
RCU  Screening to be done for each file.  Could not verify: ACM.
 Proposals which are sampled to be Positive.  Credit Referred Negative (CRN)
 Any file with remark such as “Hold” or “Report Info Match Cases: SCH.
Pending” to be treated as decision pending and such  Fraudulent Documents RCU NR
case not to be disbursed. -RCU Head.
Banking Latest 6 months Bank Statement to be collected for: RCM.
 LVC, ICV, MHCV assets AND
 SCV & PV assets where credit assessment is based
on Banking parameters.
For SCV assets where credit assessment is not based on
Banking parameters; bank statement is not required.
Bank statement print out extracted from Bank URL can

be accepted subject to the print mentions the URL,
Bank Logo and Bank name.
TMF Loans Borrower should not have any overdue in existing TMFL Corporate Credit Committee.
/ TMFSL loans (either as applicant, co-applicant or in
guaranteed contracts) as per Bureau, Dedupe & Group
exposure.
OD due to Insurance / TDS can be signed off by RCM.
Repayment Track To be ETR/GTR/ATR wherever the customer has availed Please refer Repayment Track
Record wherever any loan / past RTR. Record – Norms & Deviations.
applicable
Trade / Principal At least 2 trade references to be collected & SCH.
Reference documented by Sales Manager. The references to be
from business associates in trade such as Principal,
fellow transporters, supplier etc/ professional in case of
commercial funding and from friends / relative in case of
personal usage.
Assessment
Viability Transporters: Deployment of proposed vehicle and NCM / Head Credit.
proposed funding to be viable.
Captive: Hire Vs Buy / proposed funding to be viable.
Credit Manager can ask for detailed Viability Sheet
calculations wherever required.
Credit Norms As specified in this note. As per respective Sections.
Loan Sanction
Eligible Assets  New Vehicles manufactured by TML (Fully Built or Non TML Vehicles: Non deviatable.
Chassis versions).
 Funding on Body is allowed for Retail, Strategic, Body funding: NCM / Head Credit.
Super Strategic & Strategic Captive profile and not
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allowed for FTU, SRT and Retail Captive profiles.
 In case of PV, CNG Kit funding for Radio Taxi
application shall be as per separate Process Note.
LTV Calculation LTV to be calculated on Invoice Price Net off Discount. Non deviatable unless otherwise
Method mentioned in on-road scheme.
LTV Offering & As specified in Segmental LTV Offering & Exposure As per LTV Matrix & Exposure
Exposure Section of this Note. Matrix.
Additional funding Additionally, if the borrower opts for Life Insurance / As per the applicable Process Note
for Insurance / Vehicle Insurance / AMC (Annual Maintenance on such funding.
AMC Contract), then the funding to be processed as per the
separately approved Process Note for each of these.
This additional funding over & above the eligible LTV is
subject to following:
FTU : Total funding amount <= 95% of FBV or
Chassis being funded.
Loan Term Loan to be repaid through monthly instalments. Non deviatable unless otherwise
mentioned in specific scheme.
Repayment 1. NACH/Auto Debit/ /DAS / Full PDC. NCM / Head Credit.
2. NPDC is allowed only STR/SSTR segment at NCM /
Head Credit for all assets.
3. PDCs to be collected from Bank account which is
live & operative as per the details specified in
application form.
4. PDC not allowed from Banks with which we have
Auto Debit Bank tie-up and in NACH locations.
Tenure  Minimum 12 months. Non deviatable unless otherwise
 Maximum: Up to 60 months for FTU, SRT, Retail mentioned in specific scheme.
Captive, SFO profiles. Higher tenor up to 84 months
can be offered as per the specific scheme on same.
Maximum Tenor- Body Funding tenure should be lower than the chassis RCM: st Body Funding tenure
Body Funding tenor by at least 12 months. should be lower than the chassis
 In case the chassis tenure is <=12 months, Body tenor by at least 6 months.
Funding tenure should be lower than the chassis Else NCM / Head Credit.
tenor by at least 6 months
Loan Amount  Minimum: Rs 75,000. As per the Segmental LTV Offering
 Maximum: As per the Segmental LTV Offering and and Exposure norms.
Exposure norms.
Moratorium  Up to 30 days. SCH: Up to 60 Days for MHCV/ICV.
For other assets, > 30 days: NCM.
Group Coding  To be done where existing / multiple exposure NCM / Head Credit.
exists for the applicant or co-applicant.
Group Definition  Individuals:  Funding to External group
Group is an association of individuals belonging to members – RCM.
the particular main person called Pivot.  Funding to Outside group
 Core Group: members –NCM / Head –
Fleet belonging to Pivot and vehicles in the name of Credit.
blood relatives of Pivot namely father, mother, son,
daughter, brother, sister, spouse, daughter in law &
sister in law shall qualify for fleet size calculation.
If proposed vehicle is in the name of any of the
group members (as mentioned above), then Pivot
must be taken as co-borrower.
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 External Group Members:
st st
Uncle (maternal / paternal), Aunt, 1 cousin, 1
st
cousin’s son / 1 cousin’s daughter, in laws.
(Reference check by Credit & the same to be
documented in file).
Outside group members:
Driver/Manager/Friend (Reference check by Credit &
the same to be documented in file).
Group exposure on external group members (including
Outside group members) should not exceed 50%.
In case, proposed vehicle is taken in the name of

person/s, other than pivot or relative of pivot, then full
PDC or SPDC (2 SPDC for entire tenure of the loan to be
collected from Pivot.
If Pivot is the firm, then vehicles in name of Partner in a
Partnership Firm or Directors in a Private Limited
Company will be considered as a part of group fleet s.t.
partner/directors are part of the deal.
For Non-Individual
Group Companies & Partnership Firms under the same
management would be part of the group.
Nature of In case of: NCM / Head – Credit.
Guarantor (where  Partnership Firm: Managing Partner/Partner with
applicable) Majority stake
 Private Ltd co. - Managing Director or Chairman or
Director (with significant shareholding)
 Public Ltd co. – Managing Director or Chairman or
Director (with significant shareholding)
 HUF: Karta
 Private/Public Trust: Managing Trustee/Chairman
 Society: Chairman
Additional Norms In case of Bus funding experience is to be validated thru RCM.
for Bus funding stage carriage permits, state route permit, staff/student
transportation contracts, TDS certificates, Allotment
letter, Ownership on existing busses. Applicable
documents to be collected as follows:
 Written student transportation contract with any
school of repute.
 Written contract for staff transportation with any
commercial establishment of repute.
 Written Sub contract from an established
contractor.
 Transportation contract supported by TDS
certificates (issued for the last financial year)
 Valid State Route permits
 “Offer/Allotment Letter” issued by RTO / DTO to
produce the bus with specific route mentioning
timing. Offer/allotment Letter should have a clause
that after producing the bus, applicant will obtain
the “Route Permit” from the respective RTO/DTO.
 RC copy of vehicle.
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Loan Disbursement and Loan Booking
Disbursement in  In favour of TML or TML Authorised Dealer from Non deviatable
favour of whom the vehicle is being purchased.
 In case of additional funding for Insurance / AMC,
this additional disbursement shall be as specified in
Operations Process Note.
Disbursement In favour of body builder if it’s registered body builder. NCM / Head Credit + RBH.
towards Body Otherwise in favour of applicant subject to collections of
(wherever margin money receipt and final chassis invoice issued by
applicable) authorised vehicle dealer.
Post Disbursement Norms:
Post Copy of Invoice, Comprehensive Insurance & RC with Non deviatable
Disbursement endorsement to be documented.
ROC Charge In case of funding to Company with exposure > Rs 2 Cr, NCM / Head Credit.
filing the charge with Registrar of Companies (RoC) is
mandatory.
Employee Visit Requirement:

Customer Exposure Level of Authority Deviation Level
Rs 75 Lacs <= Rs 2 Cr Branch Credit Manager / Area Credit Manager AND NCM / Head Credit.
Territory Sales Manager / Area Sales Manager.
>Rs 2 Cr <= Rs 5 Cr State Credit Head AND State Head – Sales.
>Rs 5 Cr Regional Credit Manager AND Regional Sales Manager.
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4. Customer Segmental Norms

4.1 CV & PV Commercial Usage
Parameter FTU 2, FTU 1, SRT 2 SRT 1 Retail / SFO STR/SSTR / MFO/LFO Strategic Cap
Retail Captive
Proof of Not applicable. To Proof of all vehicles. For customers with NA. To be
vehicles be collected if live TMF RTRs: Not collected if
Free customer owns a Proof of all free vehicles. applicable. customer own a
vehicles vehicle. For others: vehicle.
Proof of 10 vehicles.
Proof of 5 free CVs.
Post Not applicable. At least 1 vehicle to be (3-5): 1 free 20%. Not applicable.
Funding free or min 50% tenor vehicle. Deviation: NCM/Head
Free Fleet should have been (6-9): 2 free Credit.
Ratio FFR serviced. vehicles.
Deviation: RCM Deviation:
RCM
In FFR calculation, deemed free vehicle can be considered at BCM/ACM level.
Deemed Free: A contract shall qualify for deemed free if future tenor <= 6 months. E.g. minimum 18 EMIs
paid out of 24 months or minimum 30 EMIs paid out of 36 months.
RTR Not applicable. To be collected Mandatory as specified in RTR Matrix. 12 months ETR /
if customer has vehicle on RTR. GTR / ATR on
any asset.
Deviation: RCM
LTV As per Segmental LTV Offering specified in this note (LTV for Retail Captive without vehicle to be as per FTU1,
with free vehicle as per SRT2 & with vehicle having RTR of 12 months to be as per SRT1).
Special Application Assets such (Transit Mixers, Bulkers, Garbage Compactors, Car Carriers, Refrigerated
Vehicles, AC Buses etc) are not eligible for FTU, SRT & Retail Captive.
Exposure As specified in exposure Matrix.
For exposure > Rs 100 Lacs, last 2 years financials & financial ratios mandatory as below.
Level 1 Norms
Net Worth Positive NCM / Head Credit
Sales YOY (last 2 years) Positive
Level 2 Norms
Cash Profit YOY (last 2 years) & to be positive >10% ACM/SCH: 4 out of 6
Current Ratio >1.1 norms met (at least 1
DSCR (including proposed exposure) >1.2 of D/E or DSCR met).
Debtors Turnover Ratio <=75 days RCM: 3 out of 6 norms
Creditors Turnover Ratio <=45 days met (at least 1 of D/E
Debt Equity Ratio (including proposed exposure) <3 times or DSCR met).
Head – Credit: 2 out of
6 norms met.
Deviation for non-availability of financials for exposure up to Rs 2 Cr at Head – Credit s.t. ETR/GTR/ATR).
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4.2 PV: Personal Usage

Criteria Norm
Assessment Assessment is as below:
 Income: Monthly Gross Income >= 2 times the EMI.
 Banking: Last 6 months Bank Statement.
 Customers with Saving / Current Account: Average Bank Balance (ABB) & Average Credits
Balance (ACB) >= 1.5 times the EMI OR ABB OR ACB>=2.5 times the EMI.
 Customers with CC / OD Account: ACB >= 2 times the EMI AND no overutilization of limit
in last 6 months and no penal interest.
 Repayment track: ETR/GTR/ATR of at least 40% of proposed exposure with minimum seasoning of
12 months.
 Owned house / Agricultural Land ownership / LMV Driving license: This can be done only if there is
specific scheme separately launched on these parameters.
LTV As specified in LTV Matrix.
Exposure Maximum 1 Unit.
Deviation:
nd st
RCM: 2 Unit subject to minimum 12 months seasoning on 1 Unit.
nd st
NCM / Head Credit: 2 Unit where seasoning on 1 Unit is < 12 months.
2 Units in 1 Go is a deviation at NCM / Head Credit level.
4.3 PV: Captive

Parameter Exposure Exposure Exposure Deviation
<= Rs 25 Lacs >Rs 25 Lacs <= Rs >Rs 50 Lacs <=
50 Lacs Rs100 Lacs
Level 1 Norms
Net Worth NA Positive NCM / Head Credit
Sales YOY (last 2 years) NA Positive
Level 2 Norms
Cash Profit YOY (Last 2 years) NA >10% ACM/SCH: 4 out of 6
and to be positive norms met (at least 1 of
Current Ratio (CR) NA >1.1 D/E or DSCR met).
DSCR (including proposed NA >1.2 RCM: 3 out of 6 norms
exposure) met (at least 1 of D/E or
Debtors T/O Ratio NA <=75 days DSCR met).
Creditors T/O Ratio NA <=45 days Head – Credit: 2 out of 6
Debt Equity Ratio (including NA <3 times norms met.
proposed exposure)
Level 3 Norms
Stability in current business / 2 years 5 years NCM / Head Credit
employment
Bank Statement ABB >= 2 times the Not applicable.
proposed EMI.
RTR For last 12 months For last 18 For last 24 months
and for at least months and for at and for at least
50% of the least 50% of the 100% of the
proposed proposed proposed
exposure. exposure. exposure.
5. LTV Matrix:
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 LTV to be calculated on Ex Showroom Price Net off Discount. However, in the case of additional funding for
Motor Insurance / Life Insurance / AMC / Registration etc, LTV shall be calculated excluding the applicable
components.
 Maximum LTV as defined above can’t exceed 95% & 100% on Ex Showroom Price Net off Discount for FTU &
Other segments respectively.
 LTV Matrix tabulated below specifies the indicative LTV that can be offered subject to RSPM Output being
Eligible / CR1 / CR2 AND Credit Assessment.
 Higher LTVs than those mentioned in the table below can be offered subject to RSPM output being Eligible / CR1
/ CR2 AND Credit Assessment.
 Sales Team can roll out Schemes with Segmental LTVs not exceeding the below 2 matrices with approval from
BH (Credit approval under Schemes shall be subject to RSPM Output being Eligible / CR1 / CR2 AND Credit
Assessment). For such Schemes roll out; the approval from Risk Team shall not be required.
 In all the above scenarios, Credit Approval shall be as per the Matrix specified in Section 9.
5.1 LTV Matrix for CV: FTU, SRT, Retail Captive
ACE Family Other SLCV MHCV/ICV

LTT (Life Time Tax) Non LTT (Life Time Tax) (excluding
States States ACE)
Repayment
Customer Segment Up to 50 >50 Km Up to 50 >50 Km
Mode
km from from km from from
TMFL TMFL TMFL TMFL
Branch Branch Branch Branch
SRT 1 95% 95% 95% 95% 95% 100%
SRT 2 95% 90% 95% 90% 90% 95%
FTU 1 95% 90% 95% 90% 90% 95%
NACH/AD /
FTU 2 with Property
FPDC 90% 90% 90% 85% 85% 95%
Ownership Proof
FTU 2 with LMV DL
or Transport DL < 2 90% 85% 85% 80% 85% 95%
Yrs
For NPDC / Part PDC deals; LTV will be reduced by 5% on the above matrix.
5.2 LTV Matrix for CV: Retail, Strategic, Super Strategic & Strategic Captive
Norms Retail Strategic Super Strategic Strategic
Captive
SCV (Goods & Passenger) Up to 90% Up to 95% Up to 100% Up to 95%
LCV- cab & chassis Up to 100% Up to 100% Up to 100% Up to 100%
LCV-CLB/HSD Up to 90% Up to 95% Up to 100% Up to 95%
LCV-Bus chassis Up to 90% Up to 100% Up to 100% Up to 100%
LCV-Fully built Bus Up to 80% Up to 85% Up to 90% Up to 85%
LCV Tipper Up to 80% Up to 85% Up to 90% Up to 85%
SLCV Body Up to 40% Up to 50% Up to 60% Up to 50%
MHCV / ICV Chassis Up to 100% Up to 100% Up to 100% Up to 100%
Fully built MHCV / ICV (including Up to 80% Up to 85% Up to 90% Up to 85%
tipper)
M&HCV Bus chassis Up to 90%. Up to 100% Up to 100%
M&HCV Fully built Bus Up to 80% Up to 85% Up to 90%
MHCV / ICV Goods Body Up to 50% Up to 60% Up to 75% Up to 60%
MHCV / ICV Non-Goods Body# Up to 40% Up to 50% Up to 60% Up to 50%
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Norms Retail Strategic Super Strategic Strategic
Captive
MHCV / ICV Bus body Up to 40% Up to 50% Up to 60%
LTV Deviation Up to 5% additional LTV & not exceeding 95% on total asset cost including the
Body cost at SCH level.
Up to 10% additional LTV & not exceeding 95% on total asset cost including
Body cost at RCM level.
LTV > above norms but not exceeding 100% on total asset cost including Body
cost at Head – Credit.
For NPDC deals; LTV will be reduced by 5% on the above matrix.
# Non-Goods Body will include the following types of Body’s: Milk Tanker, POL Tanker, Bullet Tanker, Water Tanker,
Fixed Container & Vehicle Carrier
**Above LTVs on Body funding are applicable where Body invoice is from reputed body builders with Sales Tax
billing. Body funding without Sales Tax Invoice can be approved by RBH + Head - Credit.
The cost of Air conditioner and other accessories will not be included in the Bus Body cost.
**For Retail & above profiles; Body funding can be considered for Outside Group members only when repayment of
the proposed loan is from the Pivot.
**Process for Body disbursement:

 Body payment to be released after body sighting by TMF employee. In case body sighting is done by BDM / CRE
then the same should be confirmed by On Roll Employee.
 Body sighting report should have the following: 1. Photographs from front, sides and rear. 2. Chassis imprint.
 Body should be > 50% complete. SCH to sign off the body disbursal and to ensure the following: 1. Body type is
the same that is mentioned in approval. 2. Body is more than 50% complete.
 Body LTV to be based on standardized body costs signed off jointly by State Head Sales & State Head Credit.
Body invoice is not required at login / approval stage. The same would be required at booking stage.
Pre body disbursement documents:
 Photographs from front, sides and rear. Chassis imprint of all vehicles duly signed by TMF employee.
 OPS to match the chassis number with that of TML invoice before body disbursement.
Deviations:
 Body funding disbursal without verification: Head – Credit.
PV LTV Matrix:
Usage Customer Segment / Assessment Maximum LTV
CAR MUV NANO
Personal Salaried Employees (ET500 companies*)– Gross Annual 100% 90% 90%
Income > Rs.5 Lakhs
Salaried Employees - Gross Annual Income > Rs.5 Lakhs 95% 90% 90%
Income / Banking / RTR based assessment 90% 85% 85%
Owned House 80% 75% 75%
Commercial FTU 1 95% 85% 85%
FTU 2 90% 80% 80%
Small Fleet Owner (1 unit) 95% 90% 90%
Medium Fleet Operator & Large Fleet Operator 100% 90% 85%
Captive 90% 85% 85%
For NPDC deals; LTV will be reduced by 5% on the above matrix.
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6. Exposure Matrix
Customer Maximum Exposure Repeat Funding Multiple Funding

Segment
nd
FTU 1, FTU 2  1 Unit or Rs 17 Lacs 2 Unit funding is allowed only if Funding 2 Units in 1 go: NCM / Head
st
whichever is lower. 1 Unit is funded by TMF as below: Credit.
 For MHCV/ICV where
nd
exposure is > Rs 17 BCM/ACM: 2 Unit after 18
st
Lacs <= Rs 20 Lacs, months seasoning on 1 Unit.
nd
ETR/GTR/ATR SCH: 2 Unit after 12-18 months
st
guarantor asset as seasoning on 1 Unit.
nd
specified in footnote. RCM: 2 Unit after 9-12 months
st
 ACM: Rs 24 Lacs. For seasoning on 1 Unit.
MHCV/ICV funding, Else NCM / Head Credit:
guarantor having
ETR/GTR/ATR for 18
months on asset as
specified in foot
note.
 SCH: Rs 28 Lacs
subject to guarantor
with ETR/GTR/ATR of
18 months as
specified in foot note
from Retail
transporter with
SPDC from
guarantor.
 Above norms not
met: RCM.
nd
SRT2 (NTR) 1 Unit BCM/ACM: 2 Unit after 18 Funding 2 Units in 1 Go:
st rd
months seasoning on 1 Unit & 3 SCH: s.t. 1 free vehicle as collateral.
Unit after 18 months seasoning on NCM / Head - Credit: without free
nd
2 Unit. vehicle as collateral.
st nd
SCH: >12<=18 months on 1 / 2
Unit.
st nd
RCM: >=9<=12 months on 1 / 2
Unit.
Else NCM / Head – Credit.
nd
SRT1 (RTR) 1 Unit BCM/ACM: 2 Unit after 12 Funding 2 Units in 1 Go:
st rd
months seasoning on 1 Unit & 3 SCH: s.t. 1 free vehicle / deemed* free
Unit after 12 months seasoning on vehicle OR 2 RTRs > 24 months.
nd
2 Unit AND 1 free vehicle. RCM: Customer having 1 RTR > 24
st nd
SCH: >=9<=12 months on 1 / 2 months and 1 RTR of 12-24 months.
Unit. NCM / Head - Credit: If above norms
st nd
RCM: >=6<9 months on 1 / 2 are not met.
Unit.
Head – Credit: < 6 months
st nd
seasoning on 1 / 2 Unit.
Retail 1 Unit Without vehicle ownership: As per Funding 2 Units in 1 Go:
Captive FTU. Retail Captive profile without vehicle
With Free Vehicle (without RTR): As ownership s.t. following:
per SRT2.  ABB / EMI >= 1.5 (last 6
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Customer Maximum Exposure Repeat Funding Multiple Funding

Segment
With 1 or 2 vehicle with RTR: As per months).
SRT1.  ACB / EMI >= 1.5 (last 6
months).
 Annual TO >= Rs 60 Lacs
NCM / Head - Credit: If the above
conditions are not met.
Maximum no of vehicles to be funded for Retail, Strategic, Super Strategic and Strategic Captive:
Retail: No of free / deemed free vehicles – No of vehicles under Finance (TMF & Non TMF) with seasoning < 12 months.
Deviation on exposure > norms at RCM level.
STR/SSTR/STR Captive: Vehicles funded in last 12 months (TMF & Non TMF) including the proposed funding not to exceed
1.5 times of no of free vehicles. Deemed free vehicles to be considered with deviation ACM level. Deviation on exposure >
norms at NCM / Head –Credit.
Note – Guarantor for FTU should be based on following parameter: Guarantor max loan RTR >=70% of
proposed loan amount.
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7. Deviation Matrix for Credit Bureau (CIBIL), Dedupe, FI and Repayment Track Record (RTR)
7.1 Deviation Matrix for Credit Bureau (CIBIL)

The table below is applicable for own loans as well as guaranteed loans of applicant / co-applicant /
guarantor.
Sr No Product Type of Match Amount Approval Level
1. Credit Card Overdue <= Rs.20 K BCM/ACM.
> Rs.20 K SCH.
2. Overdue. <= Rs 15 K BCM/ACM.
> Rs 15 K & <= 50K SCH.
>Rs 50K SCH: Only if borrower /co-
Loan Product borrower exhibited ETR/GTR (in
parallel or subsequent contract)
Evidence to be documented.
Else NCM / Head – Credit.
3. Credit Card / Concern Matches (Write <= Rs.50 K SCH.
Loan Product off amount + Settlement > Rs.50 K NCM.
amt + Overdue amt)
1. No match or not in database is not to be construed as Positive Match.
Overdue Concern Matches
Sub-standard account (SUB) Ever 60+/SUB/DBT/LSS
Special Mention Account (SMA) Suit Filed (SF)
DBT (Doubtful)/ LSS (Loss) Willful Default (WD)
>0 DPD Suit Filed (Willful Default) (SWD)
Overdue > 0 Suit Filed & Written Off (SWO)
Willful Default & Written Off (WWO)
Suit Filed (Willful Default) & Written Off (SWW).
Written Off (WO)
Post Write off Settlement
2. In case of overdraft/ cc limit based lending any interest outstanding is also to be considered as overdue.
3. Any match (other than concerned matches), whose reported / closed date is more than 36 months old, then
these matches need not be considered as a negative match.
4. Enquiries on other financiers in CIBIL Report - If there are more than 5 enquiries of the customer in last 3
months, it should be sanctioned by Branch Credit Manager (BCM) / Area Credit Manager after thorough due
diligence.
5. Wrong reporting in CIBIL- can be approved by SCH subject to:
1. CIBIL acknowledgement that reporting was incorrect.
2. Customer parameters as per CIBIL are significantly variant with respect to actual customer information
where it is evident that the applicant is not the same as the one where CIBIL has reported a match
Note: Customer disputing the CIBIL report as incorrect is not to be construed as wrong reporting unless backed with
CIBIL acknowledgement of the same.
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7.2 Deviation Matrix for DEDUP Report
Sr.
Report Status Deviating Authority
No.
1. 100% Provision Cases NCM / Head Credit
2. LEGAL NCM / Head Credit
3. NSTARTER BCM/ACM
4. ODC > 5000 SCH
5. ODNOS >=3 SCH
6. RBI Rejected Non Deviatable
7. Vehicle Released SCH
8. Vehicle SOLD SCH
9. Vehicle Repossessed SCH
10. TERRORIST _ Non Deviatable Non Deviatable
11. WILFUL DEFAULTER NCM / Head Credit
12. WRITTEN OFF NCM / Head Credit
13. RCU Reject/Fraud in Earlier Logged cases SCH
14. TERMINATED with Principal Waiver>5000 SCH
15. FI Reject BCM/ACM
16. Dedup Mismatch on the basis of basic parameter BCM/ACM
17. First Letter Return BCM/ACM
Difference between Residence Verification Report (FI) and BCM/ACM
18.
Tele Verification Report (checker comments)
19. PTR Customer SCH
20. Cancelled contracts BCM/ACM
1. No match or not in database is not to be construed as Positive Match.
2. Deviation matrix applicable to applicant will be equally applicable to co-applicant/guarantor.
3. For matches in 7, 8, 9, feedback from State Head Collections is suggested while for 13, feedback from RCU is
suggested.
(*) Cases with Terrorist match & RBI reject must pass thru RCU check. Borrower must be then met, assessed
thoroughly and only after identifying that identity of the proposed customer is different from the identity of the
person mentioned in dedup database, case can be considered for funding jointly by RCM and RBH.
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7.3 Deviation Matrix for Field Investigation (F.I.) Report
Sr No Category Deviation Deviating Authority
1 Non Target / Negative Area^ / No entry area SCH + State Head
Collection (1-3) OR for
Dealer Driven=> State
Type of Head Collections.
2 Place Rented Premises BCM/ACM
3 Temporarily / kuchha / Illegal house or office structure BCM/ACM
4 Resi cum office BCM/ACM
5 Special Profile A NCM / Head Credit.
6 Special Profile B when applicant/ co-applicant has a Repayment SCH
track which is ETR/ GTR or low LTV (<=70% for MHCV, <=60%
for Other CV assets & CARS, <=50% for MUV)
Special Profile B NCM / Head Credit.
7 Special Profile C when applicant/ co-applicant has a Repayment BCM/ACM
track which is ETR/ GTR or low LTV (<=70% for MHCV, <=60%
for Other CV assets & CARS, <=50% for MUV)
Special Profile C NCM / Head Credit.
8 Customer Poor Living Conditions BCM/ACM
9 Related Low office / resi stability BCM/ACM
10 Does not stay / work at the provided address No Deviation
Does not stay at the given address but supported by BM/Sales SCH
Manager/On roll TMF Employee visit report
11 Refused to provide information BCM/ACM
12 Entry not allowed in office / residence SCH
13 Asset – Profile mismatch BCM/ACM
14 Vehicle difficult to repossess SCH
15 Negative neighbourhood check BCM/ACM
16 Vehicle already delivered SCH
17 Vehicle Third party usage / Dowry / Gift SCH
Related
18 Pseudo commercial / private taxi BCM/ACM
19 Contact No phone No Deviation
20 ability Phone engaged / not reachable / phone disconnected BCM/ACM
21 Others Any other reason not classified above NCM / Head – Credit.
^ List of Negative Area to be available for audit/scrutiny.
Special Profile A:
 Criminals
 Defaulters
 Anti Social elements
 Repossession & collection agents, FI agents and all verification agents.
 TMF vendors like Yard owners, Auction agents, Brokers involved in the business of repossessed business.
 Illegal business
 Production or trade in weapons
 Gambling, casinos and equivalent enterprises.
 Production or activities involving harmful or exploitative forms of forced labor /harmful child labor
 Private finance companies not registered with RBI
 Credit Societies
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 Individual Money Lenders
 Multilevel Marketing
 Time Share and Holding Companies
 Plantation Companies
 Chit Fund and Nidhi Companies
 Politicians – As defined below:
PEP: Politically Exposed Persons are individuals who are or have been entrusted with prominent public functions
in foreign country, e.g., Heads of States or of Governments, senior politicians. The above norms may also be
applied to the accounts of the family members or close relative of PEPs. (Including retired Politicians).
Special Profile B
 Politicians – As defined below:
PEP: Politically Exposed Persons are individuals who are or have been entrusted with prominent public functions
in India e.g., Heads of States or of Governments, senior politicians (e.g. MPs, MLAs, MLC, Municipal Counsellors,
Panchayat President, Members). The above norms may also be applied to the accounts of the family members or
close relative of PEPs (Including retired Politicians).
 Advocates – non salaried, practicing advocates below high court. Excluding those empanelled by Tata group
companies.
 Religious institutes such as Priests, Pujari, Madarsas, Gurdwara priest etc
 Bar cum restaurant owner / wine merchants / liquor shops without license
 Policemen (including retired policemen) (excluding IPS cadre)
 Single digit lottery
 Video parlour operators
 Brokers engaged in used vehicle business
 Security Services
 Court officers
Special Profile C:
 STD and photocopier centers
 Placement agencies
 Media reporters and Journalists
 Contractual and part time employees
 Film industry professionals
 DSAs and their employees
 Class IV employees
 Internet cafes
 Real estate agents
 Motor driving schools
 Cable TV operators
 Astrologers
 RPF/Special Task Force(Police).
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FI Waiver Matrix
Sr. Profile / Segment FI waiver criteria If Criteria not met
No.
1.a Existing TMF ETR/GTR (must have Address in Existing/ terminated TMF Loan TMF employee Visit
availed at least 40% of the proposed account is matching with the Address in the as mentioned in
loan amount) customers Application form & KYC Document point 2 or Field Visit
(Seasoning >=6months). AND by Agency.
1.b Terminated ETR/GTR (must have Submission of a Utility Bill (dated not more
availed at least 40% of the proposed than 3 months from date of application)
loan amount) contracts with with the same address as that mentioned in
maturity date less than 6 months the application form. Utility Bill is not
from the date of application. required if TMF loan in live.
1.c Repeat funding to an existing
customer (must have availed at least
40% of the proposed loan amount)
with seasoning of < 6 months.
2. All Segments TMF employee from Sales/Credit/Collection Field Visit by
Department having a vintage of at least 6 Agency
months to visit the client &
recommendations to be documented in the
prescribed report duly signed by them along
with their employee ID.
3. TATA Group company permanent FI shall be waived based on Letter from TMF employee
employees Authorized signatory in HR validating the Visit as mentioned
contact details + (Salary slip last 3 months + in point 2 or Field
latest Form 16). Visit by Agency.
4. SCV (FTU Segment) in Commercial Only Residence FI to be done. TMF employee Visit
Vehicles Residence FI can be waived if any one of the as mentioned in
following is available: point 2 or Field Visit
1. 2 different Utility Bill’s (dated not more by Agency
than 3 months from date of application.)
stating same address as that mentioned in
the application form.
2. Passport + 1 Utility Bill (dated not more
than 3 months from date of application.)
Stating same address as that mentioned in
the application form.
3. Bank Statement (Vintage > 6 months) + 1
Utility Bill (dated not more than 3 months
from date of application.) stating same
address as that mentioned in the application
form and where repayment mode is PDC
NACH /Auto debit.
5. CIBIL Report Waiver of FI if the latest address appearing in TMF employee Visit
CIBIL report (It should be more than 12 as mentioned in
months old) matches with the address point 2 or Field Visit
mentioned in the application form by Agency
AND
1 Utility Bill (dated not more than 3 months
from date of application) stating same
address as that mentioned in the application
form
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Conditions:
Utility Bills to be accepted – Landline, Electricity, Gas, Water.
TVR is mandatory by TMF employee for all above profile/segments.
TVR to be in the attached format.
Additionally, FI can also be waived as per the provisions of FI Scorecard whenever it is launched.
TVR format for cases where FI is waived
Telephonic Verification for Existing TMF Customer

RESIDENCE TVR
Name (First Name) (Middle Name) (Last Name)
Father/ Husband's Name (First Name) (Middle Name) (Last Name)

Telehone Number (R)
Telehone Number (O): Extn:
Mobile Phone No.
Mobile Phone type- PRE PAID POST PAID
Day of TVR Date Time
Name of the person spoken to: Relation with the Customer:
Address confirmed: Yes No Stability in years:
Appr distance from TMF Branch (kms)
Vehicle deployment details
Other TVR Findings
Status of TVR: Mandatory to Tick Positive Negative

OFFICE TVR
Telehone Number (O): Extn:
Day of TVR Date Time
Name of the person spoken to: Designation:
Office address confirmed: Yes No Job stability in Years:
Other TVR Findings
Status of TVR: Mandatory to Tick Positive Negative

TVR Done by (TMFL Employee Signature)
TVR Done by (TMFL Employee Name):
TVR Done by (TMFL Employee No):
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7.4 Repayment Track Record - Norms & Deviation
The repayment track is measured on two parameters a.) Average delay (AD) and b.) Peak delay (PD)
a.) Average delay is calculated by summing delays (in days) in each instalment and dividing by total dues till the
current month.
b.) Peak delay is maximum delay in any of the instalments till current month.
Based on AD & PD track is said to be either ETR or GTR or ATR. E.g. if in given track record AD is <=5 days AND PD is
<=10 days then it is ETR.
RTR Norms:
Track record Average delay (AD) Peak Delay (PD)

ETR (Excellent Track Record) <=5 days <=10 days
GTR (Good track record) <=10 days <=30 days
ATR (Average Track Record) <=15 days <=45 days
*Tracks which are not ETR/ GTR/ ATR will be treated as PTR.
Sr. Norm Deviation Mitigation strategy Approving

No Authority
1 Earlier Loan amount availed is >30% but SCH
<40% of proposed exposure with seasoning
of >=12 months.
Earlier Loan amount availed is <30% of RCM
proposed exposure with seasoning of >=12
months.
Earlier Loan amount availed is >30% of RCM
Earlier Loan amount
proposed exposure with seasoning of >9
availed>=40% of
but<12 months.
proposed exposure Norm not met
Earlier Loan amount availed is <30% of NCM / Head Credit
with seasoning of >=12
proposed exposure with seasoning of >9
months
but<12 months.
Earlier Loan amount availed is >30% of
proposed exposure with seasoning of <9
months.
Earlier Loan amount availed is <30% of
proposed exposure with seasoning of <9
months.
2 Written Track record Written Track Reconstruction of track record with the RCM
to be documented record of non help of original instalment receipts and
either in the form of TMFL/TCL backed by CIBIL reports
SoA or validated with loans not Detail verbal Reference check to be NCM / Head Credit
the help of bank available documented with name of person &
statement and designation with who reference was taken
amortization schedule and backed by CIBIL report.
3 Terminated track to >24 months Customer has not availed any loan in last BCM/ACM - In case
have been terminated 24 months. Same to be confirmed from backed by CIBIL
within 24 months from CIBIL report Report
current loan
application RCM - Not backed
by CIBIL Report
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Sr. Norm Deviation Mitigation strategy Approving
No Authority
PTR Deviations
4 For FTU, Sub-Retail *PTR With the help of De-dup and CIBIL report SCH: AD <=20 days
& Retail Captive. confirm that borrower had no other track & PD<=90 days.
record. RCM: AD <=31 days
For TMFL tracks subject to ODC payment @ & PD<=90 days.
12 % & above. Else NCM / Head –
Credit
5 Total No. of Tracks *PTR Subject to rest of the track records are RCM s.t not more
<=5 ETR/GTR/ATR. than 50% contracts
are PTR.
6 Total No. of Tracks *PTR Subject to rest of the track records are SCH s.t. not more
>5 ETR/GTR/ATR. than 10% contracts
are PTR.
RCM s.t. not more
than 20% contracts
are PTR.
NCM / Head Credit

if above not met.
*OD must be NIL in all contracts
The following Tracks will be considered as PTR for technical reasons
a) Delays due to internal issues like Confirmation mail from BCM/ACM

cheque misplaced, cheque not PTR(*) Regional Operations
deposited etc. Manager
b) Delays due to Accident/Theft FIR copy/Insurance Claim BCM/ACM
PTR(*)
note
c) Delays due to delay in clearing for Confirmation mail from BCM/ACM
Non MICR Locations – Cluster III PTR(*) Regional Operations
& IV Manager
(*) In case of ODC deviation, approval to be taken from concern authority
Abbreviations used:
BCM= Branch Credit Manager
ACM = Area Credit Manager
SCH = State Credit Head
RCM = Regional Credit Manager
OD = over due instalment
ODC = over due charges
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7.5 Approved List of Banks/ Financiers:
Repayment of CV/CE can be taken from approved list of financiers/ banks.
• TMFL, TMFSL
• TCL
• ICICI Bank
• HDFC Bank
• Kotak Mahindra Bank
• State Bank of India, SBI Associate Banks.
• DCB
• IDBI Bank
• Cholamandalam
• Reliance Capital/Reliance Consumer Finance
• Sundaram Finance
• Mahindra and Mahindra Finance
• Axis Bank
• Magma Fincorp Ltd
• L&T Finance
• Hinduja Leyland Finance
• Shriram Transport Finance, Shriram Equipment Finance.
• Citicorp, Citi Bank.
• India Bulls Financial Services
• SREI
• Fullerton India
• Religare Finvest
• Dhanalakshmi Bank
• HDB Financial Services
• Indusind Bank
• Orix Auto Infrastructure Services Ltd. (OAIS)
• Au Financiers.
• Nationalized Banks offering equated monthly instalment.
• IIFL (India InfoLine Ltd).
• Equitas.
• Manappuram Finance.
• Daimler Financial Services.
• Yes Bank.
• Bajaj Finance, Bajaj FinServe.
• IDFC
• Bandhan Bank.
• RBL Bank (Ratnakar Bank)
• Volvo Finance
• Capital First
• Volkswagen Finance
• Toyota Financial Services
Addition of any Bank / Financier to list of approved bankers / financiers can be approved by Head-Credit &
CRO based on recommendation from RBH & NSM.
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8. Funding of Bus to School
Scoring Sheet: The proposed borrowers shall be scored as per the scoring sheet below and the final score shall
be used to decide the Grade of the School. Loan offering shall be based on final Grade of the school.
Sr Attributes 4 Marks 3 Marks 2 Marks 1 Mark

No
1 Distance from the Within the municipal Outside municipal Outside municipal Others
TMFL collection limits limits and not beyond limits and not
point. 25 km from municipal beyond 50 km from
limit. municipal limit.
2 Affiliation & Schools having Schools having Schools having Others
Experience (to be affiliation with ICSE, affiliation with ICSE, affiliation with ICSE,
validated either by CBSE, State Board CBSE, State Board CBSE, State Board
the certificate AND Experience of > AND Experience of 5- AND Experience of 2-
issued by the 10 Years. 10 Years. 5 Years.
relevant board,
state /central govt.
education
department)
3 No of Students >1000 500-1000 300-500 <300
4 Repayment Track >50% of the >25% of the proposed >15% of the <15% of the
Record proposed exposure. exposure. proposed exposure. proposed
exposure.
5 Existing Fleet of >5 3-5 1-2 No fleet
School Bus**
6 Audited Financials Meets all 4 norms Meets 3 out of 4 Meets 2 out of 4 No Financials
Norms*** Norms Norms / Meets 0 or 1
norm.
7 Mode of NACH / AD / Full PDC NACH / AD / Full PDC NACH / AD / Full PDC NPDC with
Repayment from Banking with 6 from Banking with from Banking with SPDC.
months Bank Bank Statement < 6 Bank Statement < 3
Statement. months but > 3 months.
months.
**Documentation of Fleet:
rd
Documentation of 1/3 of RC copy of total fleet is mandatory in addition to the fleet list on letter head with self-
attestation from the customer.
For existing TMFL Live contracts where RC copy has been updated in TMF System; RC copy is not required to be
documented.
***Audited Financial Norms means following as tabulated below:

Parameter Norm
Financial Following norms to be satisfied (to be compared for latest two years audited financials):
norms 1. Net worth should be positive.
2. No drop is Year On Year (YoY) turnover.
3. Cash profit to be positive.
4. Debt equity to be not more than 2 times including proposed loan.
Section 2: Final Score of the School: The schools will be given score according to the attributes as below:
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S.no Norm Weightage Marks on a scale Final score
of 1-4
(A) (B) (A*B)
1 Distance from the collection point 10% 0
2 Affiliation & Experience 20% 0
3 No of students 20% 0
4 Repayment Track record 20% 0
5 Existing fleet 15% 0
6 Audited financials meeting basic norms 10% 0
7 Repayment Mode 5% 0
Total 100% 0
Marks (column D) 4 being highest and 1 being lowest.
Section 3: Scoring result: From the above scoring sheet the Final Grades will be arrived at.
Marks Up to 2 from 2.0 to 2.4 from 2.5 to 3.4 3.5 and above
Grade D C B A
Section 4: Extent of Funding (EOF) is decided on the final Grading of the school:
Grade LTV on LTV on LTV on Fully Maximum no. of vehicles (Exposure)
chassis Body built Bus
Grade A School Up to 100% Up to 50% Up to 95% 10 units or Rs. 100 Lacs whichever is lower.
Grade B School Up to 95% Up to 40% Up to 85% 7 units or Rs. 70 Lacs whichever is lower.
Grade C School Up to 90% Up to 20% Up to 80% 4 units or Rs. 40 Lacs whichever is lower.
Grade D School Up to 85% NIL Up to 75% 2 units or Rs. 20 Lacs whichever is lower.
LTV Deviation:
1. LTV to be calculated on Price Net off Discount.
2. RCM can deviate on LTV to the extent of 10%.
3. NCM / Head – Credit can deviate on LTV for > 10%.
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9. Credit Approval
Delegation of Credit Approval Authority shall be as per the Delegation of Authority Matrix.
9.1 RSPM Processed Cases:

For RSPM processed cases; the Credit approval shall be based on the RSPM Output based as tabulated below and as
per the Credit deviations specified in the respective cases.
SLCV & PV: RSPM Processing
RSPM Output Highest Deviation Level Approval Authority

Eligible BCM / ACM Based on parameters specified by Risk Department,
Straight Through Processing (STP) will be applicable for low
risk segments (System approval, no separate approval from
Credit is required).
For others, approval shall be from BCM / ACM
Eligible SCH / RCM / NCM / Head - Credit BCM: Up to Rs 7 Lacs.
ACM: Up to Rs 15 Lacs.
Eligible Deviations which are not specified NCM / Head – Credit.
in this note.
CR1 ACM / BCM / SCH / RCM / NCM / BCM: Up to Rs 7 Lacs.
Head – Credit ACM: Up to Rs 15 Lacs.
CR1 Deviations which are not specified NCM
in this note.
CR2 ACM / BCM / SCH / RCM / NCM / RCM
Head - Credit
CR2 Deviations which are not specified NCM / Head – Credit.
in this note.
Reject Any deviation / No deviation Cased under FFA: Approval from Head Credit + any one
from BH / RBH / NCM (1-3) / RCM (1-3).
Other cases: Approval from CCC.
MHCV/ICV: RSPM Processing
RSPM Output Credit Approval Authority

Eligible BCM/ACM
CR1 SCH
CR2 RCM
Reject CCC
For MHCV/ICV funding to SRT1 through RSPM, ACM & SCH can approve all deviations up to RCM level subject to
exposure is on 1 Unit AND RSPM output is Eligible / CR1 AND exposure is within their respective approval limit
specified in DOA.
For Non-RSPM processing of SRT1 & above profile, ACM & SCH can approve all deviations up to RCM level subject
to exposure is on 1 Unit and exposure is within their respective approval limit specified in DOA.
In both scenarios (RSPM as well as Non RSPM) deals with deviations not specified in this note can be signed off by
NCM / Head – Credit on case to case basis subject to exposure being within their specified authorized limit as per the
Delegation of Authority Matrix.
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10. Annexure 1: Documents and Validation

Sr. No. Name of the Validation
document
Pre Sanction Documents

1. Application Form To be completed in all respects and duly signed by applicant / co-applicant /
guarantor.
2. KYC Documents As per TMFL KYC Policy.
Required for Applicant, co-applicant and guarantor, duly self-attested.
3. Signature Any one of the following can be accepted as Signature verification proof: -
Verification  Valid Passport (unexpired).
 PAN Card issued by IT authority.
 Valid Permanent Driving License (unexpired).
 Valid Ration card with signature.
 Banker’s Verification Letter: Letter from existing banker. Letter has to be
obtained in original on Bank’s letterhead bearing the authorizing officers name
and signature along with the stamp of the bank. The verification done should
be for the name and signature of the individual.
 ECS/Signature verification in TMF format.
 In case of illiterate or blind person –thumb/ index finger impression duly
attested by TMFL employee along with a Gazetted officer / Notary public.
 Residential property registration document containing photograph, name,
signature and address.
 Copy of margin money/processing fee cheque signed by customer along with
cheque clearance proof in banking.
* If there is any difference in signature, then an additional signature verification
document should be asked from the applicant. In case customer is not able to
provide the signature verification document, then attestation by TMFL employee
under his signature and employee number that the Applicant/Co-applicant has
signed in his presence can be treated as compliance with Signature verification
norms.
This can be documented post sanction pre disbursement also.
4. FI Report Report signed by Agency or TMFL Employee to be documented.
5. Group Validation Either required relationship proof to be documented or an undertaking from the
Pivot / co-applicant to be taken confirming the relationship.
6. Bureau (CIBIL) / Report to be documented.
Dedup
7. RCU Report to be documented.
8. Segmental For Transporter Segments:
Experience  Valid CV DL (Driving License); LMV (Light Motor Vehicle) DL for LCVs (Light
Validation of Commercial Vehicle) only.
Applicant and/or co- RC / Insurance / Invoice / Permit copy of commercial vehicles.
applicant.  Contract copy (if contract period is less than required years of experience then
collect continuation proof).
 Audited financials.
 Statutory proof like corporation tax, sales tax, excise certificate, ISO certificate
etc.
 Partnership deed / commencement of business certificate.
 ITR showing business income / details of current bank a/c.
For Captive customer segments:
 Contract copy /copies (if contract period is less than required years of
experience then collect continuation proof)
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document
 Audited Financials
Statutory proof like corporation tax, sales tax, excise certificate, ISO certificate
etc.
Certificate of Registration
 Partnership deed / commencement of business certificate.
 Shop & Establishment Certificate.
 Bank Statement of current account.
 ITR showing business income / details of current bank a/c.
9. Permit validation for Permit must be in the name of borrower and must be valid for at least 2/3rd of the
bus funding proposed tenure or past permit must be validated for continuation of business.
10. Income proof for  Minimum 2 months Salary Slips from last 3 months OR
salaried / self-  Bank account for last 3 months showing salary credit.
employed PV
 Last 2 year ITR along with ITR acknowledgement receipt. Latest ITR for which
ITR Filing date as prescribed by Tax authorities has been crossed to be
collected. Difference in the filing date of two ITRs should not be less than six
months. Deviation at RCM level.
11. PAN Applicant, Co applicant and Guarantor PAN to be mandatorily collected for all
Strategic, Super Strategic, Medium Fleet & Large Fleet customers.
12. Residence Stability Property ownership to be validated by any one of the following:
(applicable for LCV,  Title Deed.
ICV, MHCV)  Municipal Tax / Municipal charges bill.
 Purchase deed / sale agreement (including sale through POA).
 Electricity bill
 Property tax paid bill.
 Non Encumbrance Certificate / property card index.
 Share certificate issued by the society.
In case of rented, stability of 2 years can be confirmed by one of the following

(both 2 years old current proof not older than 3 months to be obtained):
 Telephone bill
 Consumer Gas
 Copy of LIC policy
 Bank Statement
 Passport
 Ration card
 Last 2 years ITR
 Voters ID
 Residence certificate issued in state of Andhra Pradesh thro Mee Seva (State
Government E-governance initiative)
13. Property ownership Property ownership to be validated by any one of the following:
proof  Title Deed.
 Municipal Tax / Municipal charges bill.
 Purchase deed / sale agreement (including sale through POA).
 Electricity bill
 Property tax paid bill.
 Non Encumbrance Certificate / property card index.
 Share certificate issued by the society.
14. Validation of  SRT: Fleet validation for all existing fleet.
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document
Segment Definition  Retail:

and Fleet  (3-5) owner: Fleet validation of minimum 3 vehicles.
 (6-9) owner: Fleet validation of minimum 6 vehicles.
 Strategic / Super Strategic: Fleet validation for 10 vehicles.
Fleet validation to be done as below:
 For customers having live TMF RTR, only fleet list is required. For others; RC
Copies or validation through RTR / Online RTO search as specified below +
Fleet List signed by the applicant / co-applicant.
 For Live running TMFL contracts where RC & Vehicle No is updated in TMF
System, Cardex can be used in lieu of RC copies.
 For live running Non-TMF contracts; if the SOA shows Regd No, then RC copies
are not required.
 Print out of Online Vehicle Registration Search can be accepted in lieu of RC
copies for fleet validation s.t. following:
 The Web Site URL is that of State Transport Authority AND
 One-time approval for the respective State from RCU – Regional
Manager & State Head Credit for the same URL is taken AND
 The print out is signed by the customer and information matches with
the fleet list AND
 In case of mismatch / incomplete details, Credit Manager can ask for
the copy of RC or B Extract.
15. Validation of Free  SRT & Retail: Validation for all free vehicles.
Vehicles  STR/SSTR: Validation of 5 free vehicles.
The validation to be based on parameters specified above.
16. Bank Statement Bank statement must be collected, where ever applicable:
 Statements to be collected of client’s major banker.
 Bank balance to be considered on 15th & last working day of every calendar
month for calculating average balance.
 For calculation of Monthly Average Credits & Monthly Average Balance Refer
“Method of Calculation of Monthly Average Credits & Balance”#.
17. Repayment Track RTR to validated and documented through following:
Record RTR  Statement of Account (SOA) or
(Wherever  Bank Statement showing EMI Debits along with the Amortization Schedule.
applicable)
18. Financials • Financial ratios to be based on latest two years audited financials.
(Wherever • Audited financials are compulsory if last audited financials are > 19 months old
Applicable) else take Provisional financials.
• Provisional financials can be waived in the month of Apr – June, at RCM level.
19. Proof of Contracts  List of contracts in hand and list of contracts executed to be obtained on
(Wherever customer’s letterhead with duly signed & stamped.
Applicable)  Either copies of contracts to be obtained or to be seen by Relationship Manager.
Details to be documented.
20. Trade Reference Duly signed hard copy of trade references as per format to be available in the file.
The reference to be taken from Principles, Suppliers, Business associates, People in
the same trade, Tyre dealer etc.
21. Pro Forma Invoice To be taken from TML Authorized Dealer / TML and must match with the asset
details provided in the CAM.
Post Sanction Pre Disbursement Documents: The same shall be as per Operations Process. Mentioned below are
only critical documents.
20. Group Coding Mandatory wherever existing exposure exists for applicant or co-applicant.
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document
21. Margin Money Proof of margin money paid (cleared in case of cheque payment) to either TMFL or
Receipt TML Dealer.
22. Authority for signing Partnership Firm: Partner’s Authorization Letter (PAL) / Power of Attorney.
loan agreement Company: Board resolution / Power of Attorney.
23. Loan Agreement Loan Agreement duly signed by borrower, co-applicant and guarantor.
24. Extra Collateral RC and Comprehensive Insurance to be endorsed in favour of TMFL.
25. RTO Set One set to be taken for each vehicle funded and to be duly signed by applicant.
Also applicable for any vehicle taken as collateral.
26. PDCs, SPDCs, Mandate for NACH / AD, PDCs, SPDC signed by applicant / authorized signatories as
Repayment applicable. PDCS must be duly signed and filled by applicant/co applicant. If PDC is
Instrument issued by guarantor, covering letter stating that the PDCs are issued at the behest
and behalf of borrower. PDCs must be from approved bank.
Security PDC also to satisfy above norms, wherever taken.
Post Disbursement Documents
27. Dealer Invoice Full and Final Invoice (copy) from manufacturer or authorized dealer for chassis
and/or body with TMFL hypothecation to be collected as per Operations Process..
28. Insurance Policy Comprehensive Insurance Policy (copy) with TMFL hypothecation to be collected as
per Operations Process.
28. RC (Registration RTO Registration Certificate with TMFL hypothecation to be collected as per
Certificate of RTO) Operations Process.
 All documents submitted by the customer must be self-attested by the customer.

 While collecting the copies of all required documents, the originals of those documents have to be seen by the
TMFL Representative (Executive/DSA) / TMFL employee. All the copies of these documents have to be signed as
Original Seen and Verified by the TMFL Representative (Executive/DSA) / TMFL employee. The TMFL Employee
or TMFL Representative who meets the customer should perform the verification (OSV stamp with name,
signature and employee / representative code).
 For existing customers where audited financials & contract copies have already been assessed for previous years
& uploaded in DMS, only latest financials & additional contract copies need to be collected (earlier financials &
contract copies retrieved from DMS can be referred; self-attestation from customer is not required in this case).
The copy of mail to be documented in file, from On roll sales employee to CPC keeping State Head in Sales in
loop seeking to transfer the old relevant document for use in the new deal.
11. Annexure 2: Validity of documents and approvals

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1. Field Investigation report (F.I.): 60 days from Report date to RO.
2. De-dup & CIBIL report: 30 days from Report date to Approval date & 30 days from Approval date to RO.
3. Vehicle valuation report: 60 days from Report date to RO.
4. Property Valuation: 90 days from Report date to RO.
5. Case/Proposal Approvals:
a. Normal credit approval is valid for 30 days from Approval date to RO
b. Corporate Credit Committee approval is valid for six months Approval date to RO
c. Board level approval is valid as per validity period mentioned in the approval note
The validity period will be calculated as: -
a. For Direct business – RO date – approval date.

b. For Dealer business – Dealer invoice date – approval date.
IRR approvals are not part of credit approvals and its validity is different which gets communicated from time to
time by business team
Any change in vehicle/model with no increase in LTV and/or total exposure post approval within validity period, can
be signed off by ACM.
Any change in the approved deal structure or revalidation of already approved deal, to be appraised only by the
approving authority that has approved the deal earlier subject to no change in approving authority level.
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Annexure: 3 # Method of Calculation of Monthly Average Credits & Balance:
 ABB is to be calculated on proposed EMI while ACB is to be calculated on total EMIs (proposed as well as
running EMIs). Running EMIs need not be added if the same are paid through different banking (proof to be
documented).
 In case of OD/CC accounts, Debit balance in CC/OD account represents the amount drawn / utilized by the
customer (i.e. the loan limit outstanding). Hence ACB to be computed instead of ABB.
Step 1: Calculate the amount of credits for every month.

Step 2: Identify the month having the highest value of credits. This month needs to be excluded for calculation of
average credits.
Step 3: Further, this same month as identified in step 2 above, (having the highest value of credits) needs to be
excluded for calculation of average bank balance also.
For better understanding of the method, please refer the examples below:
Example 1:
EMI on Proposed Loan 10,900

EMI on existing running loans 3,000
Total EMI 13,900
Average Bank Balance (ABB) Average Credit Balance (ACB)

S No Month Balance Balance on Month Credits Total EMI on Credit is #
on 15th last day of proposed as of times Month of Mar 16
day calendar well as the total has been
month running loans EMI excluded in
1 Feb 16 169,194 184,089 Feb 16 87,094 13,900 6
calculation of
2 Mar 16 291,987 278,976 Mar 16 191,089 13,900 14
3 Apr 16 132,667 168,987 Apr 16 31,395 13,900 2 ABB and ACB in
4 May 16 145,452 166,360 May 16 31,395 13,900 2 order to get the
5 Jun 16 115,557 145,452 Jun 16 31,395 13,900 2 evened out cash
6 Jul 16 75,192 132,741 Jul 16 73,899 13,900 5 flows.
Sum on each 638,062 797,629 Sum of all 255,178
date for 5 Credits for5
months months
excluding Mar excluding
16. Mar 16.
Avg for 5 127612 159526 Avg for 5 51036
months months
Avg for 5 143569
months
Avg Balance is =143569 Avg Credit is =51036
# times the /10900 # times the /13900
Proposed EMI i.e. 13.2 Total EMI i.e 3.7
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Example 2:
EMI on Proposed Loan 9000

EMI on existing running loans 0
Total EMI 9000
Average Bank Balance (ABB) Average Credit Balance (ACB)

S No Month Balance Balance on Month Credits Total EMI on Credit is #
on 15th last day of proposed as of times Month of Mar 16
day calendar well as the total has been
month running loans EMI excluded in
1 Feb 16 17,194 9,489 Feb 16 4,094 9000 0
calculation of
2 Mar 16 291,987 222,976 Mar 16 291,089 9000 32
3 Apr 16 2,667 2,987 Apr 16 4,395 9000 0 ABB and ACB in
4 May 16 1,452 1,360 May 16 2,395 9000 0 order to get the
5 Jun 16 1,557 1,452 Jun 16 3,395 9000 0 evened out cash
6 Jul 16 7,192 2,741 Jul 16 2,899 9000 0 flows.
Sum on each 30,062 18,029 Sum of all 17,178
date for 5 Credits for5
months months
excluding Mar excluding
16. Mar 16.
Avg for 5 6012 3606
months
Avg for 5 4809 Avg for 5 3,436
months months
Avg Balance is # =4800 / Avg Credit is = 3436
times the 9000 # times the / 9000
Proposed EMI i.e.0.5 Total EMI 0.4
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Policy For Commerical Vehicle

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SHEBA PROPERTIES LTD

Ref No: RI/06-17/00667/NW-667

Consolidated Procedure Note for CV & PV Finance

Department Issuing the Circular Risk.

1. Objective and Applicability of the Note

Applicability of the Note:

2.1 Customer Segmentation for CV

2.2 Customer Segment Definitions for PV

3. Common Credit Norms: CV & PV

Parameter Norm Deviation

Bank statement print out extracted from Bank URL can

In case, proposed vehicle is taken in the name of

Employee Visit Requirement:

4. Customer Segmental Norms

4.2 PV: Personal Usage

4.3 PV: Captive

5.1 LTV Matrix for CV: FTU, SRT, Retail Captive

ACE Family Other SLCV MHCV/ICV

**Process for Body disbursement:

Customer Maximum Exposure Repeat Funding Multiple Funding

Customer Maximum Exposure Repeat Funding Multiple Funding

7.1 Deviation Matrix for Credit Bureau (CIBIL)

TVR format for cases where FI is waived

Telephonic Verification for Existing TMF Customer

Name (First Name) (Middle Name) (Last Name)

Father/ Husband's Name (First Name) (Middle Name) (Last Name)

Other TVR Findings

Status of TVR: Mandatory to Tick Positive Negative

Other TVR Findings

Status of TVR: Mandatory to Tick Positive Negative

Track record Average delay (AD) Peak Delay (PD)

Sr. Norm Deviation Mitigation strategy Approving

NCM / Head Credit

*OD must be NIL in all contracts

The following Tracks will be considered as PTR for technical reasons

a) Delays due to internal issues like Confirmation mail from BCM/ACM

Repayment of CV/CE can be taken from approved list of financiers/ banks.

8. Funding of Bus to School

Sr Attributes 4 Marks 3 Marks 2 Marks 1 Mark

***Audited Financial Norms means following as tabulated below:

Marks (column D) 4 being highest and 1 being lowest.

9.1 RSPM Processed Cases:

SLCV & PV: RSPM Processing

RSPM Output Highest Deviation Level Approval Authority

MHCV/ICV: RSPM Processing

RSPM Output Credit Approval Authority

10. Annexure 1: Documents and Validation

Pre Sanction Documents

In case of rented, stability of 2 years can be confirmed by one of the following

Segment Definition  Retail:

 All documents submitted by the customer must be self-attested by the customer.

11. Annexure 2: Validity of documents and approvals

The validity period will be calculated as: -

a. For Direct business – RO date – approval date.

Annexure: 3 # Method of Calculation of Monthly Average Credits & Balance:

Step 1: Calculate the amount of credits for every month.

EMI on Proposed Loan 10,900

Average Bank Balance (ABB) Average Credit Balance (ACB)

EMI on Proposed Loan 9000

Average Bank Balance (ABB) Average Credit Balance (ACB)

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