Approach for gradation of risk

The decision to give a loan and the interest rate applicable to each loan account is assessed on a case-by-case basis, based on multiple parameters such as the type of asset being financed, borrower profile and repayment capacity, borrower’s other financial commitments, past repayment track record if any, the security for the loan as represented by the underlying assets, loan-to-value ratio, mode of payment, tenure of the loan, geography (location) of the borrower, end use of the asset, etc. Such information is collated based on borrower inputs and field inspection by the company officials.