Loan Policy & Guidelines
A comprehensive institutional framework designed to maximize strategic asset quality, accelerate responsible structural growth, and safeguard stakeholder capital.
Corporate Overview
To carry on the business of financing in general of all sorts by lending money with or without security and generally to such person, persons or bodies and upon such terms and conditions as the Company may think fit, and to purchase, sell, hire or let on hire purchase all sorts of Motor Vehicles, Radios, Talkies, Televisions and other Household Goods and Appliances, Electrical and other Machines, Presses and their parts and accessories, and to carry on the business of financing business undertakings.
Regulatory Note: Provided that the Company will not do any banking business as defined under the Banking Regulation Act, 1949, and shall also not carry on any business prohibited by the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
Objectives of the Loan Policy
Portfolio Diversification
To build and sustain a high quality credit portfolio well diversified in terms of clients, markets and products with an acceptable risk adjusted yield.
Product Innovation
To encourage various functionaries to innovate and evolve competitive and need based products based on market requirement criteria.
Risk Management
To strengthen risk management systems for appropriate pricing of credit risks and ensure close monitoring to prevent slippages into NPAs.
Strategic Alliances
To build strong alliances with intermediaries and channel partners for systematically tapping and onboarding new business streams.
Credit Exposure & Thrust Target Areas
The Policy lays down a broad approach which R.B.CREDITS adopts in respect of different credit processes, credit risk management, control, and monitoring, and is supplemented by specific schematic guidelines issued from time to time. The focus of the First Credit Policy of R.B.CREDITS is on quality asset growth, coupled with growth in income across various segments of business while maintaining a strict focus on customer needs.
The Company has identified the following primary activities to be the core thrust/niche business areas:
- Loan Against Property (LAP) to Individuals: Providing structured asset-backed credit options for qualified retail profiles.
- Personal Loans to Individuals: Short-to-medium term retail consumption or personal credit configurations.
The thrust business areas are thoroughly reviewed by a Sub-committee of the Board from time to time, besides exploring new avenues of operational and fee income generation. Dealer financing remains one of the heavily focused operational areas of R.B.CREDITS in its first year of operation; this designated Committee decides the precise threshold limit of exposure for alternative credit schemes in consultation with the full Board of Directors.
LAP
Core Focus Area
Retail
Personal Consumption Allocation
Year 1
Dealer Financing Focus
Board Lead
Risk Exposure Approvals
Product Development & Facilitation
R.B.CREDITS has deployed agile market mechanisms to identify the operational demands of our business partners and execute optimizations safely.
Business Development
Dedicated department structures focused entirely on managing and assessing product innovations along with test marketing deployment windows.
Board Oversight
New credit product frameworks or fundamental structural shifts to existing parameters must be officially verified and signed off by our Sub-committee.
Quality Asset Growth
Ensuring that all innovative credit structures scale income metrics safely while optimizing target metrics for secure portfolio yields.
