MSE sector includes various kinds of shops, small manufacturing units, hotel industry, lathe machines, garages, workshops, power/auto loom, dairy, kirana and home based industries. Due to the non-formal nature of MSE sector, it becomes difficult to appraise the creditworthiness of a client using traditional methods. Srujan has a centralized loan approval system with dedicated professionals who use non-traditional methods and analyze the cash flows and the repayment capacity of the individual. Likewise, Srujan has developed its own unique methodology of appraising a client and has a robust technology platform, which supports its operations.
The most crucial part of the loan methodology is identification of the target client segment and begins with client prospecting, selection and screening. The required data and information collected is forwarded to the Approval centre for carrying out the necessary verification, checks, evaluation and cash flow analysis. Credit Bureau consent and in-house credit rating process are integrated into the methodology for gauging client credit history and track record. Additionally site visits, third party feedback and checks are conducted and legal opinion is taken on collateral obtained for final approval.