Anda di halaman 1dari 69

Summer Training Project Report on

Credit Appraisal System IN Commercial Vehicle loans

Undertaken at


Submitted in Partial Fulfilment of the Requirement for the Award of
the Degree of
Master of Business Administration
Danish Showkat Dhar
Roll No.14036113030
Reg. No.:-29437-IC-2011
Under The Supervision of
MR. Sachin Gupta


I take this opportunity to express my deep sense of gratitude, thanks and regards towards all of those
who have directly or indirectly helped me in the successful completion of this project. I present my
sincere thanks to Mr. SACHIN GUPTA who allowed me to take training at INDIA INFOLINE.I would
also like to thank INDIA INFOLINE Staff for their wonderful support & inspirable guiding. I also
thank Murtaza sir who has sincerely supported me with the valuable insights into the completion of this
project. i am grateful to all faculty members of South Campus and my friends who have helped me in
the successful completion of this project.

Last but not the least I am indebted to my PARENTS who provided me their
time, support and inspiration needed to prepare this report.

I, Danish Showkat Dhar, a bonafide student of MBA (Full Time) Program at the Dept. of
Management Studies, South Campus University of Kashmir, Anantnag, hereby declare that
I have undergone the Summer Training at India Info line LTD under the supervision of Mr
Sachin Gupta on and from 10th March 2016 to 4thth May, 2016.
I also declare that the present project report is based on the above summer training and is
my original work. The content of this project report has not been submitted to any other
university or institute either in part or full for the award of any degree, diploma or
Further, I assign the right to the University, subject to the permission from the organization
concerned, use the information and contents of this project to develop cases, case lets, case
leads, and papers for publication and/or for use in teaching.

Place: Anantnag
Date: 04-05-2016
Danish Showkat Dhaar
Roll No. 140361130

1 Introduction 5

1.1 Credit Appraisal System and its importance 3-4

1.2 Theoretical Background of the Study 5-7

1.3 Commercial vehicle Finance overview 8-13

1.4 Role of NBFCs in Commercial vehicle Financing 14-15

2 Company Profile 17

2.1 History of IIFL and Vision Values and strategy 18-19

2.2 Corporate structure 20-23

2.3 CSR practised by IIFL 23-25

2.4 Credit Policy of IIFL 26-33

3 Literature Review 35

3.1 Reasons for doing study 36- 38

4 Research Methodology 36

4.1 Objectives 36-38

5 Data Analysis and research Findings 49

5.1 Loan appliers to defaulters 42-45

5.2 Parameter used for credit appraisal 46-49

5.3 5 Cs of Credit 50-51

5.4 Credit appraisal process at IIFL 52-55

5.5 Findings 56-57

6 Conclusion 59

7 Bibliography and References 60



We have often heard about home loans, car loans and personal loans. Most of us also know the purpose
which these loans serve. However, only a few of us would be aware of commercial loans. Lets try to
understand the purpose of these loans, documentation process and who can avail them.

Commercial vehicle loans are usually taken by individual, partnership firms, proprietorship firms, HUF
(Hindu Undivided Family), trusts, societies, self-employed, businessmen and private and public limited
companies for their financing needs for owning and running commercial vehicles.

The borrowers of these loans are usually engaged in the business of transportation. Commercial vehicle
loan options are available for buses, tippers, transit mixers or any other heavy, light or small
commercial vehicle. A commercial vehicle loan can be taken for a variety of commercial vehicles,
which may be used at different locations.

Banks such as HDFC Bank, ICICI Bank, DCB Bank and Yes Bank among others provide such loans.
Also NBFCs (non banking financial companies) like Reliance Commercial Finance and Fullerton India
provide loans.

While loans are sanctioned for the purchase of a new commercial vehicle, banks also offer loans for
pre-owned vehicles. Borrowers can also avail of a top up on existing loans subject to conditions

The study found that current credit appraisal process at IIFL is time consuming process and it can be
significantly reduced by following certain set standards. It was also found from the study that at the
percentage of defaulters at IIFL increased from 2014 to 16 the main reason for such an increase was
such poor techniques used for credit appraisal at IIFL.



The process by which a lender appraises the creditworthiness of the prospective borrower is
called the CREDIT APPRAISAL. This normally involves appraising the borrowers payment
history and establishing the quality and sustainability of his income. By the process of credit
Appraisal, the lender satisfies himself of the good intentions of the borrower, usually through
various processes including TVR (Telephonic Verification Report), CPV (Contact Point
Verification), CIBIL Check (Credit Information Bureau Limited) & RCU (Risk Control Unit) or
by physical interview of the Borrower.

Importance of credit appraisal system

Financial institutions & banks are intermediate between lenders and borrowers. These financial
intermediaries collect deposit and disburse it as loan and advance to the individual people,
business, commercial, industrial entity. The loan and advance should be given to them who have
the certain and predicted cash flow to repay the credit. If the manger fails to analyze the clients
viability of repaying the loan, possibility of default may arise due to the fact.

So the importance of APPRAISAL, in sanctioning the loan, is the key to identify the borrowers
ability, expertise, efficiency, industrial analyses and business performance.

Recovery of credit:-

Appraisal is done to ensure the recovery of the credit along with the good supervision,
monitoring and the relationship. In other words, the purpose of appraisal is to be sure that the
proposed advance will be safe, liquid, and profitable for accepting purpose covered by adequate


The most important measure of appraising a loan proposal is safety. Safety means the assurance
of repayment of distributed loans. Company is in business to make money but safety should
never be sacrificed for profitability. To ensure the safety of loan, the borrower should be chosen
carefully. He should be a person of good character and capacity.


The banker must ensure that the borrower is able to repay the loan on demand or within a short
period. This depends upon the nature of the assets owned by the borrower and plugged to the
company. For example goods and commodities are easily marketable while fixed assets are land
and buildings can be liquidated after a time interval. Thus, company regard liquidity as important
as safety of the funds and grants loans on the security of assets which are easily marketable
without much loss.


Profit is the blood for any commercial institution. Before approval of any loan project, the
company authority has to be sure that the proposed project will be a profitable venture.

Diversification of risk:-

During sanctioning any loan, company has to be attentive about diversification of risk. All money
must not be disbursed amongst a small number of people.

National interest and growth:-

The company would lend if the purpose of the advances can contribute more to the overall
economic development of the country.

Theoretical Background

Non-Banking Financial Companies (NBFCS)

We usually study about banks, apart from the banks the Indian financial system have a large
number of privately owned, decentralised and small sized financial institutions known as NBFCs.
In recent times, the NBFCs have contributed to the Indian economic growth by providing deposit
facilities and specialised credit to certain segments of the society such as unorganised sector and
small borrowers.

NBFCS provide financial services like hire purchase, leasing, loans, investments. NBFCs can
be classified into deposit accepting companies and non deposit accepting companies. NBFCs are
small in size and are owned privately. The NBFCs have grown rapidly since 1990. They offer
attractive rate of return. They are fund based as well as service oriented companies. Their main
companies are banks and financial institutions. According to RBI act 1934, its compulsory to
register NBFCs with the reserve bank of India. NBFCs are heterogeneous group of Finance
companies means all NBFCs provide different types of financial services.

NBFCs constitute a important segment of the financial system. NBFCs supplement the role of
the banking sector in meeting the increasing financial need of the corporate sector, delivering
credit to the unorganised sector and to small local borrowers. NBFCs have more flexible structure
than banks. As compared to banks, they can take quick decisions; assume greater risks and tailor
make their services and charge according to the needs of the clients. There flexible structure
helps in broadening the market by providing the saver and investor a bundle of services on a
competitive basis. NBFCs at present providing financial services partly fee based and partly fund
based. There fee based services include portfolio management, issue management, loan
syndication, merger and acquisition, credit rating etc. Their asset based activities include venture
capital financing, housing finance, equipment leasing, hire purchase financing factoring etc. In
short they are now providing variety of services. NBFCs differ widely in their ownership; some
are subsidiaries of large manufactures ( T.V motors, and T.V finances and services ltd). Many
others are owned by banks such as ICICI banks, ICICI securities ltd, SBI capital market ltd,
Muthoot bankers, Muthoot financial services ltd a key player in Kerala financial services. NBFCs

carry out financing activities but their resources are not directly obtained from the savers as debt.
Instead, these institutions mobilize the public savings for rendering other financial services
including investment. All such institutions are financial intermediaries and when they lend, they
are known as a non-banking financial intermediaries (NBFIs) or investment institutions.

Classification of Non-Banking Financial Companies (NBFCS)

Equipment Leasing Company.

Hire Purchase Finance Company.

Housing Finance Company.

Investment Company.

Loan Company.

Residuary Non-Banking Company.

Miscellaneous Finance Company.

Commercial vehicle Finance Overview

Commercial Vehicle (CV) industry in India has surged over the past decade and the market is expected to
grow at a Compound Annual Growth Rate (CAGR) of over 15% until 2016 (Source: Society of
Indian Automobile Manufacturers (SIAM)) with many companies competing to expand.
Commercial vehicle is a type of motor vehicle that is used for transporting goods or carrying passengers
with former contributing around 87% in India. Commercial vehicles are classified into Light, Medium &
Heavy depending upon its gross vehicle weight. The CV industry enables quick, easy departure of goods
and accepts smaller loads than railways and also commercial vehicles can access remote and hilly areas
where rail lines cannot be constructed.

The main growth drivers for CV Industry are modernisation of the trucking industry,
structural shift to Hub & Spoke model, improved road infrastructure, growing freight capacity
and increase in exports from remote areas enabling the producers/manufacturers to move their
goods to ports. The key risk factors for this industry are low freight demand and truck rentals,
non-availability of cargos, fuel price, risk prone area of occupation, sudden transport strike,
competition with alternate mode of transport (Railways) and any new government regulations
related to restrictions based on age of the vehicle and other environmental safety issues. Also,
recent study on CV industry by ICRA found that the Indias GDP and IIP numbers are very
closely correlated with the development of Commercial Vehicle Industry, which in turn has made
this industry the lifeline of Indian Economy.
CV Financing and Securitisation
CV Financing Industry in India has seen an impressive growth and in the last five years till 2012-
13, CV loan disbursements grew by around 11 per cent (Source: CRISIL Research, Retail
Finance- Auto, June 2013). Major players in CV Financing in India are Tata Motors
Cholamandalam Finance, Sundaram Finance, AU Finance, Shriram Transport Finance, Magma,
L&T, M&M and Religare. The key factors that could impact vehicle financing in India are
growth in vehicle sales, finance penetration and average ticket size (players offering marginally
higher LTV because of competition from other players). The process of pooling the loans given
by these CV financiers and selling the securities backed by cash flows from the loans to investors
is termed as Securitisation of CV pools and the bank or finance company that has originated the
pool of receivables/loans is termed as Originator. While selecting the loans for securitisation,
Originator should take into account the factors such as loan tenure, Interest rates, vehicle type
(LCV/UCV), geographical diversity, recovery rates, etc.

Risk Factors affecting the CV portfolio performance

We performed a small study to identify the factors that significantly affect the Securitised CV
pool performance (delinquencies) and have illustrated the way in which these factors affect the

Data was collected from the Pool Performance reports (from Jun 08 to Dec12) published by
Rating Agencies (CARE, ICRA and CRISIL) with a total number of 194 transactions of 14
different Originators. The factors, which could affect the pool performance, were identified based
on three broad categories such as Transaction Details, Initial Pool Details and Pool Performance
Details. Once data and factors were identified, regression of these factors with 90+ and 180+
delinquencies was performed and the significance level of factors affecting the delinquencies was
We found that originators have greater impact on delinquencies than any other factor. This
implies that the characteristics and business model of originator seems to be the most important
deciding factor for the CV pool performance. Even though none of the coefficients of other pool
parameters are found to be significant, certain parameters like presence of new CV (NCV) in the
pool, weighted average seasoning of the pool and ticket size of the loans seem to have positive
impact on pool performance. However, the single regression results do not consider the inter
dependencies between the factors. For example, presence of NCV in the pool and high-ticket size
of the loans can go hand in hand. Further, an originator may spend significantly more effort in the
credit evaluation of a high-ticket loan resulting in better origination.

Trend in Domestic Commercial Vehicle Volumes & Growth Rates by segments

Domestic Commercial vehicles Sales (in Nos)

Segments FY2010 FY2011 FY2012 FY2013 FY2014 10m FY2015

LCV Bus 34,413 44,816 48,868 47,827 42,799 35,812


LCV Truck 253,364 3,17,030 4,11,415 4,76,695 3,89,312 2,80,130
Total LCV 2,87,777 3,61,846 4,60,283 5,24,522 4,32,111 3,15,312
M&HCV 43,083 47,938 49,882 46,931 38,709 27,687
Bus Sales
M&HCV 2,01,861 2,75,121 2,99,334 2,21,776 1,61,918 1,53,696
Truck Sales
Total M&H 2,44,944 3,23,059 3,49,216 26,8,689 2,00,627 1,81,383
CV sales
Total CV 5,32,721 6,849,05 8,09,499 7,83,211 6,32,738 4,96,695

Total sales of Light commercial vehicle (LCV)



4,00,000 FY 2010
FY 2011

3,00,000 FY 20102
FY 20103

2,00,000 FY 20104
FY 20105

LCV Bus Sales LCV Truck Sales Total LCV Sales

Total sales of Medium and Heavy Commercial Vehicle (M&CV)



4,00,000 FY 2010
FY 2011

3,00,000 FY 20102
FY 20103

2,00,000 FY 20104
FY 20105 10 m

M & HCV Bus Sales M & HCV Truck Sales M & HCV Sales

Total sales of commercial vehicle




6,00,000 FY2010
4,00,000 FY2013

3,00,000 FY2014
10m FY2015


Total LCV Sales Total M&H CV sales Total CV Sales

Growth Rates by segments

Segments FY2010 FY2011 FY2012 FY2013 FY2014 10m

LCV Bus 27.7% 30.2% 9.0% -2.1% -10.5% -8%
LCV 45.8% 25.1% 29.8% 15.9% -18.3% -13.8%
Truck sales
Total LCV 43.4% 25.7% 27.2% 14.0% -17.6% -12.4%
M&HCV 23.5% 11.5% 4.1% -6.0% -17.5% -12.5%
Bus Sales
M&HCV 35.8% 36.3% 8.8% -25.9 -27.0% 19%
Total, 33.5% 31.9% 8.1% 23.1% 25.3% 10.9%
Total CV 38.7% 28.6% 18.2% -2% -20.0 -4.6%

Growth Rates by segments (LCV)


10m FY2015
60% FY2014
20% FY2011
LCV Bus Sales LCV Truck sales Total LCV Sales


Growth Rates by segments (M&HCV)


10m FY2015
40% FY2014
0% FY2011
M & HCV Bus Sales M & HCV Truck M & HCV Sales
-20% Sales



Total Commercial vehicles sales

10m FY2015
10% FY2010
Total CV sales

Role of NBFCS in Commercial vehicles financing

The NBFC sector has been playing important role in development of the road transport sector.
The banks have not been in a position to deploy more than 3 to 4 percent of their funds to this
sector. Therefore, disbursals to SRTOS (small road transport operators) have not been
significant enough to support the road transport operators. Bank funding as a percentage of total
funding in the commercial market has therefore not exceeded 25 to 30 percent in the past.

Recoveries have also not matched expectations. Funding SRTOS requires specialized customer
evaluation skills and infrastructure that is different from the requirements of typical bank
borrowers. The operators provide the necessary documentations and securities required for
processing of the disbursal. The purpose of special schemes for SRTOs has been defeated by this
in ability to conduct business in this segment. Further, recovery management in this also requires
specials and infrastructure. The NBFC sector has grown to fill this void. It has developed
necessary focus and the infrastructure to operate successfully in this sector. The high share of
funding to this sector reflects this fact. The NBFC sector therefore is an excellent position to
develop this role in the industry.

Existence of recovery management systems and infrastructure to ensure high collection


Retail network geared to handle the funding requirements of commercial vehicle

operators due to exclusive focus on this segment.

Flexibility to design customised funding options to suit the needs of individual


NBFCs jointly participate with manufacturers to provide higher levels of customers

service. They are in a position to offer vehicle service packages in addition to funding. This is
done jointly with manufactures and dealers.

Capability to induct new participants into commercial vehicle operating business by
effective utilization of existing database infrastructure.

Better capability to manage risk due to focused infrastructure and activity.



IIFL Holdings Ltd is divided into 9 companies.

1. IndiaInfoline Ltd.
2. IndiaInfoline Finance Limited: IndiaInfoline housing Finance Limited is under this
3. Indiainfoline Insurance brokers Ltd.
4. IndiaInfoline Commodities Ltd.
5. IIFL Assets management company & IIFL MF
6. IIFL Private Wealth management Ltd.
7. IIFL (Asia) Pte Ltd.
8. IIFL Inc. (US) investment Advisors Ltd.
9. IIFL (UK)
10. IIFL Multi National Company.


IIFL was co-founded on Oct 17, 1995 by Nirmal Jain and R. Venkatraman. Jain was previously
employed with Hindustan Lever Limited. The company was founded as Probity Research and
Services Private Limited which provided research on the Indian economy, businesses and
corporates. The name was later changed to India Infoline Limited.

A few years into the business, the organisation found itself with clients which included research
organisations, banks and corporates. They then began launching their research products to
become more noticeable in the market. In the meanwhile, the dotcom revolution was beginning to
take place in India. Taking advantage of this revolution would mean an increase in the number of
readers to millions. The website was created in 1999.

Taking the business one step ahead this group of consultants opened a trading portal in 2000 thus moved into the business of being a full service broking agency.
During this time they widened their distribution network.

In 2001, the Indian dotcom industry saw a downfall. During this time, sustaining became tough.
The organisation then decided to tie-up with leading Life Insurance company ICICI Prudential,
thus putting to use its distribution network and becoming Indias first corporate agent for

In 2009, IIFL also held their first global investor conference, Enterprising India, which was
attended by the likes of Jim Walker, David Bloom and Brahma Chellany, amongst others.

Operations and Global Offices

IndiaInfoline has about 4000 business locations in about 900 cities. Apart from India they are
presenting 8 other countries- Singapore, Dubai, USA, UK, Switzerland, Hong Kong,
Mauritius and Sri Lanka.



To become the most respected company in the financial services space in India.


Values are IIFL are summarised in one acronym: GIFTS.

Growth with focused team of dynamic professionals.
Integrity in all aspects of business no compromise in any situation.
Fairness in all our dealings employees, customers, vendors and shareholders all

Transparency in what we do and in how and why we do it.
Service orientation is our core value, imbibed by all sales as well as support teams.

Business strategy
Steady growth by adapting to the changing environment, without losing the focus on our
core domain of financial services.
De-risked business through multiple products and diversified revenue stream.
Knowledge is the key to power superior financial decisions.
Keep costs low and continuously strive for innovation.

Customer strategy
Remain largely a retail focused organisation, driving stickiness through knowledge and
quality service.
Cater to untapped areas in semi-urban and rural areas, which is relatively safe from cut-
throat competition.
Target the micro, small and medium enterprises mushrooming across the country
through a cluster approach for lending business.
Use wide multi-modal network serving as one-stop shop to customers.

People strategy
Attract the best talent and driven people.
Ensure conducive merit environment.
Liberal ownership-sharing.


Brand IIFL

In todays world, brand is considered as the most valuable asset of an organisation. It serves as
the medium that connects product as well as service offerings to customers and is an intangible
voice that speaks volumes about the company.
At IIFL, we believe that a brand is the face of a companys work culture. Think of it as a
something that introduces us to our customers and to the world. Our brand is our identity; it
narrates our story of success and serves as a sign of trust.

The IIFL brand is associated with trust, knowledge and quality service. But more importantly, the
brand stands for timely assistance provided to the countrys under-banked customers.
When we pioneered online trading in India with the launch of our brand 5 paisa, the tag line was
Its all about money, honey. We then realigned our positioning from Knowledge is the Edge
to When its about Money.

The significance of IIFL logo

The IIFL Logo comprises of the nine triangles which form the Sri Yantra. In Hindu Mythology,
the nine interlocked triangles that surround and radiate from the centre (bindu) symbolize the
highest, the invisible and elusive centre from which the entire cosmos expands.
Our brand represents a cosmos in itself, where two worlds meet. One, where we together strive to
grow and expand and the other, where we strive to make possibilities infinite for our customers.
It is the confluence of these two thoughts, represented by the age old symbol of converging
powers that stands as the face of our brand.


Financial Advisory & Broking Realty & Property Advisory Services

One of the leading broking house with Real estate services provider advising clients

extensive presence all over the country in transaction of commercial and residential

providing financial planning and broking properties across the country. IIFL also

services in equity, commodities and currency provides advisory and funding services to

trading. real estate developers

Asset Management

Wealth Management Our AMC is wholly owned subsidiary of

IIFL Wealth and is the Investment manager
One of the largest and fastest growing of IIFL Mutual Fund and rapidly growing
Wealth Management companies in India Alternative Investment Funds.
with assets under advice, management and
distribution of over Rs. 700 billion


Financial Products Distribution To

Institutional & Investment
IIFL is one of the largest distributors of cater
financial products such as Life Insurance, to
Mutual Funds, NCDs, Tax-free bonds, IPOs Premier broker for FIIs, DIIs, financial
etc. through our wide distribution network institution, private equity funds and banks.
and business associates. Emerged as one of Investment Banking division leverages its
distribution reach in capital markets with Instit
the largest broker for life insurance in the
country. strong institutional placement capabilities ution
and a wide reach across investor segments. al
Financing Housing Finance
Our NBFC is a diversified financing centri
The company is focussed on home loans and
company, offering loans secured against c
loans for residential project.
collaterals of home, property, gold, medical
equipment, commercial vehicles, shares and
other securities.
IIFL Group has established subsidiaries in seven countries worldwide.

CSR Practises by IIFL

Rural Development for Holistic Transformation and Change

IIFL understands that all social problems are intertwined and to bring about a total change it is
important to take a holistic view of the situation. The Gram Vardhan yojana adopts rural
underdeveloped villages to bring about a complete change.
Sustainable Livelihood
IIFL recognizes that it is imperative to mainstream the disengaged to participate in the labour
force of the country and adapt to a sustainable livelihood in order to contribute positively to the
nation building process. The intervention areas under livelihoods for IIFL encompass two broad
verticals: 4 Entrepreneurship and Employment. IIFL Foundation will support holistic
development in regions identified by engaging with the said communities and enabling them to
attain sustainable livelihood opportunities.
IIFL undertakes projects that support small-scale enterprises run by marginalized communities
and equip them with skills and resources to run the enterprises. These projects are further divided
into those that are focused on agro-based enterprises and those that focus on non-agro-based
Projects that fall under this category focus on enhancing employment potential of unskilled or
under skilled populations. These include pre-livelihood training, which involves career
counselling for school children that focus on reducing drop-out rates of students.

Education is one of the basic building blocks of a great nation. A literate population can catapult
India towards realizing its demographic dividend. For IIFL, education is one of the key focus
areas for CSR. The CSR projects in education will include promoting education, setting up and
upgrading educational facilities and supporting institutes of higher education.
Financial literacy
IIFL believes that individuals with basic financial knowledge can make informed financial
decisions and therefore, maintain better financial health. Through the IIFL Foundation, the Group
will endeavor to provide information of financial products, especially of rewards and risks, in
order to better equip the financially excluded to make informed choices with respect to money.
The company has undertaken projects that focus on educating school students and slum women
in this respect. The school children targeted are largely those who are studying in 8th or 9th
standard, and include students both from urban schools (both private and municipal schools) and
rural schools.
In its endeavour to promote healthcare (including preventive healthcare), CSR projects of IIFL
seek to support those healthcare initiatives and medical research institutions that aim to enhance
healthcare access, especially to the disadvantaged and underprivileged.
Disaster Relief & Rehabilitation
Major natural disasters can and do a severe negative short run economic impacts. Disasters also
appear to have adverse longer term consequences for economic growth and development . India
is vulnerable to natural disasters and she has to face natures fury atleast once or twice each year.
As a responsible company, IIFL should support the relief & rehabilitation where ever needed.
dard asset).

The credit policy of IndiaInfolineFinance ltd.
IndiaInfoline Finance Ltd., (IIFL) has adopted the code to provide transparency in business
dealings with its customers.


To promote good and fair practices by setting minimum standards in dealing with

To increase transparency so that the customer can have a better understanding of what
they can reasonably expect of the services.

To encourage market forces, through competition, to achieve higher operating


To promote a fair and cordial relationship between customer and IIFL; and to foster
confidence in the investment services system.

Application of the code:

This code shall apply to all employees of IIFL and other persons authorized to represent it in
the course of its business, whether the products and services are provided across the counter,
over the phone, by post, through interactive electronic device, on the internet or by any other


IIFL shall adhere to this code to act fairly and reasonably in all dealings, on the ethical
principle of integrity and transparency, to meet the standard practices prevalent in the
investment services industry.

IIFL would provide clear information, without any ambiguity, to the customer in

1. Products and services together with its terms and conditions including interest and service

2.Benefits available to customer.

IIFL will deal quickly and sympathetically in correcting mistakes if any, and attend to
customer's complaints in light of the objectives of this code.

IIFL shall treat all personal information of customers as private and confidential and shall not
divulge any information to third person unless required by any law or Government authorities
including Regulators or Credit agency or where the sharing of information is permitted by the

IIFL would provide, on request, copy of the Code to the existing borrowers and new customer
prior to commencement of business transaction.

IIFL shall not discriminate its customers on the basis of race, caste, gender, marital status,
religion or disability. However the restrictions, if any, as mentioned in the loan products shall
continue to apply.

IIFL shall refrain from interference in the affairs of the borrowers except for the purposes
provided in the terms and conditions of the loan agreement (unless new information, not earlier
disclosed by the borrower, has come to the notice of the lender)

IIFL shall ensure that changes in interest rates and charges are effected only prospectively.

Disclosure and Transparency :

IIFL would provide information on interest rates, common fees and charges through:

1. Putting up notices in branches.

2.Through telephones or help lines.

3. Through designated staff/help desk

4. Providing service guide/tariff schedule.

Advertising, Marketing and Sales :

IIFL shall ensure that all advertising and promotional material is clear and not misleading. The
Fair Practice Code shall also apply to sales Associates / representatives of the company to the
extent of their identification when they approach the customer for selling products personally.
In case of any advertisement in any media and promotional literature that draws attention to a
service/product and its interest rate IIFL shall also provide the details of other fees or charges,
if any. Further on the request of the customer IIFL shall provide the details of relevant t erms
and conditions.

Credit Reference Agencies :

IIFL would give information about customers to credit reference agencies on:-

1. Opening of an account

2. The customer fallen behind with his/her payments and the performance of loan account
which includes how much loan has been sanctioned and the subsequent performance

3. Legal proceedings have been initiated against the customer to recover the dues.

4. Debts settled through legal recourses against the customer

IIFL may give credit reference agencies other information about the customer's account if law
requires it or the customer has given them his/her permission to do so.

Collection of Dues:

Whenever loans are given, IIFL would explain to the customer the repayment process by way
of amount, tenure and periodicity of repayment. However if the customer does not adhere to
repayment schedule, a defined process in accordance with the laws of the land shall be
followed for recovery of dues. The process will involve reminding the customer by sending
him/her notice or by making personal visits and / or repossession of security, if any.

IIFL staff or any person authorized to represent the company in collection of dues or/and
security repossession shall identify himself / herself and display the authority letter issued by
the IIFL and upon request, display his/her identity card issued by the IIFL or under authority of
the IIFL . IIFL shall provide the customers with all the information regarding overdue.

All assistance shall be given to resolve disputes or differences regarding dues in a mutually
acceptable and in an orderly manner.

During visits to customer's place by the person authorised by IIFL for dues collection or/and
security possession/repossession the following guidelines shall be followed:

1. Customer would be contacted ordinarily at the place of his / her choice absence of any
specified place at the place of his / her residence and if at his / her residence, at the place of
business / occupation.

2. Identity and authority to represent the Company shall be made known at the first instance.

10. Customers privacy should be respected.

3. Interaction with the customer shall be in a civil manner.

4. The Company representatives shall contact the customers between 0700 hrs and 1900 hrs
unless the special circumstances of the customers business or occupation otherwise.

5. Customer's request to avoid calls at a particular time or at a particular place honored as far as

6. Time and number of calls and contents of conversation would be documented.

7. All assistance should be given to resolve disputes or differences regarding mutually

acceptable and in an orderly manner.

8. During visits to customer's place for dues collection, decency and decorum be maintained.

9. Inappropriate occasions such as bereavement in the family or such other occasions should be
avoided for making calls/visits to collect dues.

Know Your Customer (KYC) Guidelines:

IIFL shall explain the requirements of KYC guidelines to its customers and inform them about
the documents required for establishing the identity of the customer before loan sanctioning,
account opening and operation. IIFL shall also put the KYC requirements and filling up the
same on the website of for the benefits of the customers.

IIFL would obtain only such information to meet with company's KYC, Anti-Money
Laundering or any other statutory requirements. In case any additional information is asked for,
it will be sought separately and shall specify the objective of obtaining such additional


Assessment of Loan Repayment Capacity by IIFL:

All loan application received by IIFL will be processed inline with the internal policies and
criteria's. If IIFL cannot provide the loan to the customer, it shall communicate the same to the
customer through its appointed representatives or directly to the customer verbally. In case
customer requires the same in writing the reason(s) for rejection can be provided

Applications for Loans and its Processing:

I. At the time of sourcing a loan product, IIFL shall provide information about interest
rates applicable, as also the fees/charges, if any, payable for processing, pre-payment
options and charges, if any, and any other matter which affects the interest of the
II. All particulars required for processing the loan application shall be submitted to IIFL at
the time of application. In case it needs any additional information, IIFL would contact
the customer.
III. IIFL shall convey to the customer the loan sanction along with the terms and conditions

IV. The customer is entitled to one set of authenticated loan documents on execution of the
V. IIFL shall not discriminate on grounds of sex, caste and religion in the matter of
lending. However, this does not preclude IIFL form instituting or participating in
schemes framed for different sections of the society.
VI. IIFL at its discretion shall process requests for transfer of a loan account, either from the
borrower or from a bank/financial institution, in the normal course. IIFL shall convey
the consent or objection as the case may be within 21 days from the receipt of the
VII. Before taking a decision to change any terms and conditions including disbursement
schedule, interest rate, service charges, recall/accelerate payment or performance under
the agreement or seeking additional securities or any other charges, IIFL shall give
notice to borrowers in consonance with the loan agreement.
VIII. IIFL shall release all securities on repayment of all dues or on realization of the
outstanding amount of loan subject to any legitimate right or lien for any other claim
that IIFL may have against borrower. If such right of set off is to be exercised, the
borrower shall be given notice about the same with full particulars about the remaining
claims and the conditions under which the company is entitled to retain the securities till
the relevant claim is settled/paid.


When a person is considered to be a guarantor to a loan, IIFL shall inform him/her the
following under acknowledgement-

I. Letter/ Deed of Guarantee stating the terms of liability as guarantor.

II. IIFL shall keep him/her informed of any default in servicing of the loan by the borrower
to whom he/she stands as a guarantor.

Branch Closure/Shifting:

IIFL shall inform the customer in the event of closure/shifting of its branch office.

Communication with the customer:

Customers should be able to access the Company through any of the following means:

I. Walk In to branches (as mentioned in Company brochure/website/any other leaflet)

II. Telephone, Fax and Email ID (as mentioned in Company brochure/website/any other

Complaints :

IIFL would strive for customer satisfaction within the framework of law, adopted policies and

In case of any grievance, the customer may approach the In-Charge of the business location
where he / she had his / her account and register the complaint in the 'Complaint Register'
available with the In-Charge. The Company has in place Customer grievance recording and
resolving process. The process broadly includes mode of receipt and resolution of complaints
and turnaround time for resolution.

On registering the complaint, the customer should obtain complaint number and date for future

Customer may also write / communicate with the concerned location for redress of the


IIFL shall ensure all personal information of customers are treated as private and confidential
[even when the customers are no longer customers], and shall be guided by the following
principles and policies. IIFL shall not reveal information or data relating to customer accounts,

whether provided by the customers or otherwise, to anyone, including other companies or
entities in their group, other than in the following exceptional cases:

I. If the information is to be given by law.

II. If there is a duty towards the public to reveal the information.
III. If the Company's interests require them to give the information (for example, to prevent
fraud) but it should not be used as a reason for giving information about customer or customer
accounts [including customer name and address] to anyone else, including other companies in
the group, for marketing purposes.
IV. If the customer asks the Company to reveal the information, or with the customer's
V. If IIFL is asked to give a reference about customers, they shall obtain his / her written
permission before giving it.
VI. The customer shall be informed the extent of his / her rights under the existing legal
framework for accessing the personal records that an IIFL holds about him /her.
VII. IIFL shall not use customer's personal information for marketing purposes by anyone
including IIFL unless the customer specifically authorizes them to do so.


IIFL reserves the right to amend /alter /modify the codes as mentioned herein above and
provide updates from time to time, not affecting/sacrificing the underlining spirit of the code.
Such alternation/amendments may be displayed at the notice boards of the branches /Corporate
Office for the benefit and information of the customer.


The account of the previous studies taken in this field is presented in the table below

Title Author Journal Name Year Findings

Dr Kalra, International Journal of 2012 The Credit Appraisal
Credit Appraisal System in R. Management, IT and System of Bank is in
Allahabad Bank Engineering accordance with the RBI
norms and effective Credit
Appraisal Cells at Zonal
offices has helped the bank
in effectively identifying
the creditworthiness of the
borrowers and NPA
Credit Appraisal Process of Arora ; A Journal of 2013 Credit appraisal is done to
SBI Arti Economics and check the commercial,
Gaur; Management financial & technical
Babita viability of the
project proposed its funding
pattern & further checks the
primary or collateral
security cover available for
the recovery of such funds.
An Overview of Credit Sharma, Pacific Business 2015 The credit appraisal system
Appraisal System with & Review International followed by Micro Small
special reference to Kalra and Medium Enterprises
Micro Small and Medium (MSME) sound enough
Enterprises. (MSME) with respect to the
parameters used for
A Study on Credit Balkees International Journal of 2015 The most important reason
Appraisal System of Sakhti Research instinct for default could be
Finance limited, Calicut mismatch between
with special reference to borrowers item of credit
commercial vehicles. and creditors term of credit.

Reasons for doing this study

The credit appraisal holistic exercise which starts from the time a prospective borrower walks
into the branch and culminates in credit delivery and monitoring with the objective of ensuring
and maintaining the quality of lending and managing credit risk. The process of credit appraisal
is multi dimensional and includes,

Management Appraisal

Technical appraisal

Commercial appraisal

Financial appraisal

Economic appraisal

Management appraisal has received lot of attention these days as it is one of the long term
factors affecting the business concern. Technical appraisal emphasis on the technical feasibility
of the venture and it also finds the possible economic life period of the present technology.
Commercial appraisal focuses on the commercial viability of the project. It tries to find matters
regarding demand in the market, the acceptance of the product in the market. It also focuses on
the presence of other substitutes of product in the market.
It also focuses on the multiple scope of the product. Financial appraisal is done to find out
whether the promoter is having the capacity to raise the finance both own equity and debt?
What are the sources of margin?

The scope of the credit structure is incomplete without examination of credit proposal. Credit
proposal has to be examined from the point of 5 Cs viz.






Limitation of study

Difficulty in data collection :

It is difficult to collect more important and confidential personal documents. They are rarely
recorded and more seldom preserved. They are generally destroyed after a short time.

Limitation of time :

There are limitations of time so i cant measure the trends which are very slow. Due to lack time
i cant have that much quality data.

Inadequacy of sufficient materials:

There is great dearth of journals and magazines in different areas in India to publish data
concerning various aspects of problem. Even the data is collected: it is seldom published in
time. Thus i cant use it for our purpose of research.


Research methodology

Methodology is the important part of research study, which enables the researcher to form blue
print of the research undertake. Research methodology involves the systematic procedure by
which the research starts from the time of initial identification of the problem to the final
This chapter deals with different steps which are undertaken by the investigator for gathering and
organising the data. It includes the description of research approach, research design, setting of
the study, population, sampling techniques, criteria for selection of the sample size, limitation,
method data collection, development and description of the tools.

Objective of the study

o To study and understand the parameters of credit appraisal system of commercial

vehicle finance at IIFL.

o To study the process of credit appraisal and the reason for an increase in the no. Of
defaulters at IIFL.

o To identify and suggest the scope for improvement in credit appraisal system.

Data Used:
For the present study secondary data has been used. This comprises of Records, Published data,
Journals and magazines, internet and other documents.

1) Records:

Records occupy the most important place among public documents. Most of companies preserve
so many types of a record of important information. I used much information from the records.

2) Published Data:

Published documents include published by institutions from time to time. I used this data which
company published for their customers.

3) Journals & Magazines:

Journals & Magazines are important public documents including a variety of information, which
can be usefully utilized in research. Most of this information is very much reliable. Letters to the
editors published in various magazines and journals are important source of information.

4) Other documents:

Other documents mainly include newspapers publish news, discussions on important issues,
meetings and conferences. The reliability of this source is very high. Besides it television public
speeches are other important source of information.

5) Internet:

In todays world of information technology internet is the biggest source of secondary data. I
used internet for finding many data.



Year 2014-2015 2015-2016

Loans sanctioned 2175 3726

Defaulters 64 191

Loan Appliers To Defaulters

The following is data loan appliers anddefaulters. In the year(2014-2015)97.06% of the

customers are able to repay the loan amount but 2.94% failed to repay.

In the year (2015-2016) 94.87% of the customers are able to repay the loan amount but 5.13%
failed to repay.




Percentage change

95% Loan sanctioned



2014-2015 2015-2016

The average percentage of default in these two years taken together which shows us default of

Loan Amount To Loan Defaulted

Year (2014-2015) in cr. (2015-2016) in cr. NPA %

Loan amount 110 237 0.51

Defaulters 0.56 2.16 0.91

The following is the data loan amount sanctioned to the customers and loan amount defaulted by
the customers. The 99.29 % of the loan amount is recovered but 0.71% of loan amount is failed
to recovered.




NPA (In cr)
In Cr


14-15 15-16

Reasons for Default

Capacity issue Circumstantial defaulter

Service Issues Habitual defaulter
3% 1% 5%


Capacity issue:

Capacitytoo much of it, or too little. One of the major causes of default by a Loanee is the
decrease in the capacity to produce. A new customer may fail to operate a vehicle because of
which there will be a decline in his/her income, thus he/she wont be able to repay the loan
amount that has been borrowed from the NBFC or a Bank.

Circumstantial Defaulter:

A loanee may also default because of certain conditions that are generated usually from the
external environment. Some of the sources include

a) Theft.

b) Govt. Norms issue.

c) Accidents.

d) Death cases.

Service issues:

Another cause of default may because of the poor services provided by the bank or a financial
institution. A bank or any nbfc may change the terms and the norms of an agreement with a
customer. What they promised before the agreement , they are not able to stand on their terms
and conditions. Some of the service issues may be:

a) Rate issue.

b) Repayment period issue.

c) Advance EMI issue.

d) PF and other advances issue.

e) Timely and ECS and ACH presentation.

Habitual defaulter:

Habitual defaulter is the actual defaulter; this person defaults because his/her intentions are not
clear. The person has actually applied for the loan for the purpose that he/she wont repay back.
This may result a case of fraud later on.

Parameters used for Credit appraisal

Parameter Documents
Technical Field investigation, Market value asset
Economic LTV (loan to value), IIR
Bankability Past month bank statement, Assets and liabilities of
an applicant
CIBIL Credit worthiness

1. Technical feasibility:

Technical What is company looking for

Living Standard Decent living standard with some tangible assets like
T.V and Refrigerator will provide assurance to bank
regarding to the residential status of the customer.
Locality Presence of some undesirable elements like local
goons or controversial areas adversely affects the loan
appraisal process.
Educational Not an essential barrier but essential to understand the
Qualification complex terms and conditions of bank loan.
Political influence An interesting reference point in the sense that they

are one of major categories of loan defaulters.
References To establish the residential identity of person from
human contact point of view and cross check of their

2. Economic feasibility:

Economic viability
Instalment to income ratio IIR for salaried case would be capped at
60% of net income in general.
Pension income cases IIR restricted to
be 40%.
Fixed obligation to income ratio FIOR kept at 55%.
Loan to cost ratio LTV amount to 80%.

3. Bankability:

Parameter Norms Check points

Bank statements 6 months bank To check the average
statements need to be amount client is
furnished. maintaining in the
account is sufficient to
pay the instalment
amount or not.
Business continuity Two years IT returns To enquire primary
proof made compulsory. source of income.
Credit interview For the big loan amount To check the general
credit interview is attitude of customer
necessary. along with efforts are
put in to understand

their needs better.
Profile of customer Salaried professionals Secured source of
get an edge over income give them a
business income people. edge.
Security Asset of value equal to To safeguard bank
or more than loan interest against any
amount taken has to be future default.
put as pledge or
Ownership title To be on the name or To establish the
blood relative of ownership claim of the
applicant. loan applicant.

Credit Information Bureau (India) Limited

CIBIL is Indias first Credit Information Company (CIC) founded in August 2000. CIBIL
collects and maintains records of an individuals payments pertaining to loans and credit cards.
These records are submitted to CIBIL by member banks and credit institutions, on a monthly
basis. This information is then used to create Credit Information Reports (CIR) and credit scores
which are provided to credit institutions in order to help evaluate and approve loan applications.
CIBIL was created to play a critical role in Indias financial system, helping loan providers
manage their business and helping consumers secure credit quicker and on better terms.
CIBIL Score:
The CIBIL score is predictive scoring model that uses the credit information available at CIBIL.
The score is a number between 300 and 900 which is calculated at the time a credit report is
accessed and is representative of an individuals credit behaviour. The higher the numerical value
of score the lower the risk profile of the individual.
What factors influence the score?
Various factors influence the score, including the following;

1. Payment history
2. Outstanding debt
3. Length of credit history
4. Number and types of credit accounts
5. Utilisation
6. Applications for new credit
These factors impact the score either positively or negatively. Factors that have an unfavourable
impact on the score are explained in reason codes.
Score range is between 300 and 900: but in some cases score can be 0 or -1.
Score could be -1 for no match cases or cases with only enquires.
Score could be0 for cases where the account opened trade is less than 6 months or there is an
error while computing score.
1. Individuals gets a score of 0 for the following reason:
Individual has no trade with performance history of > 6 months.
Due to data base connection issues there are few enquire with a score of 0. This however, is an
aberration. If an enquiry is pulled on the same individual again he would get a valid score.
Score could be 0 owing to errors specified as duplicate history as well. Such cases arises due
to wrong reporting.
2. Individual gets a score of -1 in case of the following:
Individual has no trade and is not reported to CIBIL.
Individual has no trades and has not only been enquired upon.
Individual has trades on the CIBIL. However, same has not been reported in the last 24 months
prior to the date of inquiry done by the member bank.
3. Cases where score is higher despite default (suit filled status written off etc.,/ amount overdue
value being present):
Refer to the latest date reported for such cases. Recency of delinquency/ overdue amount flag is
given higher weight while computing the score. In recent 6 months, if there are no trades with
delinquency flags and no overdue amount, then it will fetch more score for the customer.

Amount overdue reported but asset classification reported as STD (Stan

5 Cs of Credit :



Condition Capacity
Credit Appraisal

Collateral Capital

1) Character:
It refers to the honesty and integrity of the person. Borrowers are not necessarily reliable or host
and the lender must look evidence of good character, if it exists. Frequently, this can be
ascertained during an interview. The lender must, however, be sure to make his own assessment
and not rely on the decision of an existing lender, or similarly on a key individual in the
company- so called name lending.

2) Capacity:
It refers to the actual ability of the borrower to enter into a contract with the lender. It relates to
the technical, managerial and financial means. It also refers to how the company monitors and
manages its risks and the suitability of the assets in the company to generate sufficient levels of
cash to repay the loan.
3) Capital:
Capital refers to the investment or the stake that the borrower has in the firm. This is important to
understand the capability of the individual. It is important for analysis as it determines how well
the firm is capitalized and does the borrower has reasonable stake or he is willing to let it go
down the tubes and walk away from the obligations.


It analysis other potential sources of repayment of the obligations if these aresupported by

collateral security. Typically the amount of security required will depend on the type of business
enterprise and the circumstances.

5) Conditions:

It discusses the competitive environment of the firm and how well the firm fits in. It also
considers any economic event that affect the repayment ability of the firm and also the purpose
for which loan is required.

Credit appraisal process at IIFL

Marketing Executive


Credit Department
FI (Field Investigation)

Marketing Executive
Credit approval memo

Credit Department

Approval / Decline

Post Approval Documents


Sales executive:

Sales executives sell a company's products and services. Customers include individuals,
businesses and government organisations and sales may be domestic (within the UK) or
international, or a combination of both.

As well as approaching potential customers with the aim of winning new business; sales
executives work to maintain good relationships with existing clients, gaining repeat business
wherever possible.

File Making:

The second thing the company officials do is that they send their sales executives to the
customers for attaining KYC documents (know your customers). These documents include any
identity proof like PAN card, VID Passport, Driving license, Voter Card & address proof such as
VID, passport, Bank Statement, Adhaar card. These documents help in identifying the details of
the customer about his residence and his personal identification.

Asset related documents in file making: asset related documents are fulfilled by dealer (in case
of new vehicle) and by client himself/herself (in case of old vehicle)

Documents related to asset

New vehicle: Invoice/Bill or Performa

Used vehicle: RC (registration certificate), Insurance policy, Permit, Fitness, Tax, Valuation
(value of vehicle)


After the sales team credit department investigates about the worthiness of the customer which is
based on the five Cs of credit that are:

1) Character
2) Capacity
3) Capital

4) Condition
5) Collateral

For this the credit team goes for CIBIL (credit information bureau limited) & FI (Field

CIBIL scorecard of a client is calculated and if the score is found greater than 500 than the credit
team approves for further processing like FI (field investigation) that can be done internally and

Marketing executive:

After credit team processes the CBIL score and FI, the credit team sends the customers file back
to the sales team. The sales team prepares the credit approval memo under which they enquire
about the vehicle which is needed by the customer weather which is a light commercial vehicle
(LCV), moderate commercial vehicle (MCL) or heavy commercial vehicle (HCL). They also
check about the loan amount further they also check the background of a customer whether the
customer is a newcomer or already exists in the segment.

Credit department:

After accessing by the sales department finally the credit team decides whether the loan should be
approved or disapproved to the customer.

For the decision making credit department cross checks whether the relevant documents are
positive or negative viz.

1) CBIL report Positive

2) Field Investigation Positive
3) Policy criteria Positive
4) Telephonic verification report (TVR) Positive

If these documents are found with the positive review by the credit experts than the loan is
sanctioned by the credit team, and if any above conditions are not met than the loan wont be
granted to the customer.

Post approval documents:

When the credit team finally sanctions loan to a customer Company demands further documents
such as Insurance policy, registration certificate, (in case of new vehicle it is mandatory to submit
these documents within 30 days) affidavits, signed blank cheques.
Finally the amount of money in the form of loan is paid to the customer in the form of cheques or
in the bank accounts. The company charges

Findings and Recommendation

IndiaInfoline Finance Limited is one of the trusted financial institutions limited in

NBFC, with a huge number of satisfied customers more than 10 Million.

Underwriting or Credit appraisal plays a very vital role and key role in any organisation

for the selection of right buyers for lending through which various resources as explained in the


The staff and the team of IndiaInfoline finance limited is very much cooperative and

supportive in nature of response.

IndiaInfoline provides various kinds of lending to its customers in commercial vehicle

including new vehicle, re-finance, used finance & BT loan.

From the data the loan procedure of the company is easy as compared to others.

Although there is a tough competition in the market, but it was also found that these

NBFCs are connected with each other. The middle level managers of different companies share

their daily experiences with each other. This helps them to avoid some risks and losses.

The overall collection percentage of the IndianInfoline finance limited is about 98.70%

in commercial vehicle finance.

There is an increase in the number of defaulters at IIFL from 2.94% to 5.13% in 2014

in 2016.

The main reason for an increase in the number of defaulters at IIFL is an inefficient

process of screening and lengthy process of credit appraisal.

The Company should move to E-Documentation that will help in reducing the

documentation part as well as save the paper work and reduce the overall TAT in the decisioning,

despite of the fact that it will enhance the productivity of the team too.

Company should appoint customer relationship manager for better customer relations.
The company should offer some special offerings to their existing clients to sustain their loyalty
towards the company.



The credit appraisal system in IIFL is simple to understand and easy to calculate, which helped
me to understand the credit appraisal system. Sometimes credit goes to wrong person then it will
also affect the performance of the company because company may give loan against
hypothecation (HP) of vehicle. The loan system starts from verifying and checking the necessary
documents, collection the actual cost in terms of monthly instalment and ends with No Objection
Certificate (NOC).

In the company the credit manager is the only person who takes care of proposals. The credit
manager should consult the recovery manager that a person is not a default gist. If the customer is
taking loan twice then credit manager should check his/her previous record.

It can be concluded from the study that the Credit appraisal process at IIFL goes through a set of
processes which have been described in the project.

The study found that current credit appraisal process at IIFL is time consuming process and it can
be significantly reduced by following certain set standards. It was also found from the study that
at the percentage of defaulters at IIFL increased from 2014 to 16 the main reason for such an
increase was such poor techniques used for credit appraisal at IIFL.

Balkees, K. S. (2015). A Study on Credit Appraisal System.... Internatinal Journal of..... , 2 (2), 76-91.

K.S, M. (2015). A Study on Credit Appraisal System of Sakhti Finance limited, Calicut with special reference to
commercial vehicles. International Journal of Research instinct , 76-91.

Kalra, D. (2012). Credit Appraisal System in Allahabad Bank. International Journal of Management, IT and
Engineering , 537-559.

Sharma, M. S., & Kalra, M. P. (2015). An Overview of Credit Appraisal System with special reference to MSME.
Pacific Business Review International , 95-104.

Crizal reports