tata capital two wheeler loans salaried and self employed segment revised- june’14

Tata CapitalTwo Wheeler Loans

Salaried and Self Employed Segment

Revised- June’14

Presentation Path• Introducing Two Wheeler Loans Open Market

– Business Model– Product USP– Product Roadmap

• Product Policy – Product Norms – Customer Eligibility Norms– Credit Norms– Annexure 1 - Special Profiles not to be funded – Annexure 2 - LTV Grid– Annexure 3 - Model Categorization– Annexure 4 - Documentation Norms– Annexure 5 - Credit Deviation Matrix– Annexure 6 - Document Formats

Introducing Two Wheeler Loans: Salaried and Self Employed Segment

Business Model

Offering to Salaried and Self

Employed Segment

Case disbursed

DealershipBased sourcing/

DSA based sourcingBranch Walk ins.

File scanned On WebTop With CPC

No Credit Appraisal

(In RAAC Cases)

Post Sanction Documentation

done

Product USP

Attractive Rate of Interest

Funding up to 85%

Minimal Documentation

Faster TAT’s

Flat Rate of 12.5%

Funding Linked to model categorisation

Fill the application form, KYC & Income proof ~ Drive your TW

Same Day Credit Approval

Product Offering – Birds Eye View

Funding Up to 85%

On the spot credit approval – File will move

from branch ops straight to

disbursement team in CPC

Flat rate of 12.50% i.e. IRR of 22%

No field Investigation if

house is self owned

Spot Credit Approval for RAAC

cases

Max Loan Amount of Rs 150,000

Processing Fee 4% of Gross loan

amount

Funding available on select models

and brands

Open Market Salaried & Self Employed

Segment

Product Policy

Product Norms

Policy Norms Salaried Individuals Self Employed Individuals

Locations

12 Approved Locations(Mumbai, Pune, Nagpur, Ahmedabad, Delhi, Jaipur, Chandigarh, Kolkata, Bhubaneshwar, Bangalore, Chennai, Hyderabad)

12 Approved Locations(Mumbai, Pune, Nagpur, Ahmedabad, Delhi, Jaipur, Chandigarh, Kolkata, Bhubaneshwar, Bangalore, Chennai, Hyderabad)

Sourcing Channel Dealership based, DSA based and Direct

Dealership based, DSA based and Direct

IRR 22% 22%

Brand and AssetSelect Models as mentioned in Annexure 3 in this presentation

Select Models as mentioned in Annexure 3 in this presentation

Loan Amount Maximum limit Rs. 150000/- Maximum limit Rs. 150000/-

Product Norms (Cont.)


Tenor Minimum: 12 monthsMaximum: 36 months

Minimum: 12 monthsMaximum: 36 months

CollateralInvoice & Insurance Pre-DisbursalRC Copy Post Disbursal

Invoice & Insurance Pre-DisbursalRC Copy Post Disbursal

Processing Fee and Stamp Duty

PF - 4% of Gross Loan Amount and Stamp Duty at actuals.

PF - 4% of Gross Loan Amount and Stamp Duty at actuals.

Repayment Mode PDC/ECS/DAS PDC/ECS

Eligibility Norms


Eligible Profiles Salaried Individuals Self Employed Individuals

Special Profiles Not to be funded(Refer to Annexure 1)

Not to be funded(Refer to Annexure 1)

AgeMinimum - 21 Years (18 yrs with co applicant)Maximum - 60 Years at loan maturity

Minimum - 21 Years (18 yrs with co applicant)Maximum - 65 Years at loan maturity

Co-applicant Allowed for Age, Income and Registration purpose

Allowed for Age, Income and Registration purpose

City Stability Minimum 1 year Minimum 2 years

Employment Stability

Minimum Total Work Experience of 1 Year

Minimum Business Stability of 2 Years

Eligibility Norms (Cont.)


Residence Cum Office Not Applicable Allowed only if Residence

cum Office is self ownedNegative Areas as

defined by collections

Not to be funded (Deviation with respective cluster collection manager)

Not to be funded (Deviation with respective cluster collection manager)

Contactability

To be established at residence and office both Landline , WLL , Prepaid and Postpaid Nos are allowed

To be established at residence and office both Landline , WLL , Prepaid and Postpaid Nos are allowed

Reference Two References are mandatory

Two References are mandatory

Credit Norms


Number of Assets One per individual One per individual

Income

Mandatory and should be Minimum Rs. 4500 per month

Following documents can be accepted as income proof1. Salary Slip for last 3

months 2. Last 3 Months Bank

Statement with salary credits reflecting

3. Latest Form 164. Salary Certificate with

positive RCU report

Not Mandatory

LTV As specified in Annexure 2 As specified in Annexure 2

Credit Norms (Cont.)


Banking NormNot applicable (However

Bank Statement to be collected)

Average Bank Balance in last 3 months should be one time the EMI if LTV>RAAC LTV or FOIR >100% (For the purpose of calculating the Value of credits in a Bank, the credit for last 15 days from the date of purchase of vehicle should not be considered. (Bank balances as on 1st, 5th, 15th and 25th to be taken for calculation of ABB)

Margin Money Receipt

Full Margin Money Receipt to be documented pre disbursement

Full Margin Money Receipt to be documented pre disbursement

De-Duplication Should not be negative Should not be negative

Credit Norms (Cont.)Policy Norms Salaried Individuals Self Employed

Individuals

FI

Mandatory and should be positive

(refer note below) at residence and

office FI is waived at residence and

office if 1. LTV <= RAAC LTV and 2. The customer has got landline

either at residence or office (In case of a WLL and post paid connection it should be duly supported by a bill)

Mandatory and should be positive

(refer note below) at residence

and office FI is waived at residence and

office if 1. LTV <= RAAC and 2. The customer has got

landline /WLL/ post paid connection (WLL and post paid connection should be duly supported by a bill) and

3. Residence/Office is self owned and is not a residence cum office case

RCU Mandatory MandatoryNote: FI shall be considered as positive except for the following reasons:• Person does not exist• Address not traceable/Does not exist• Defaulter/Bad Market reputation• Negative neighborhood check

Credit Norms (Cont.)Policy Norms Salaried Individuals Self Employed

Individuals

Tele-Verification Check

1. TVR should be positive either at residence or office2. Both Reference checks should also be positive

1. TVR should be positive either at residence or office2. Both Reference checks should also be positive

FOIRUp to 33% if there is no

existing obligation.Up to 60% if there is an

existing obligation

Up to 150% if there is no existing obligation

Up to 200% if there is an existing obligation

CIBIL

Aggregate Overdue amount up to Max. Rs. 1000 allowed (Without any Derogatory History)

Minimum CIBIL score of 600 (Scores of -1 and 0 are allowed)

Aggregate Overdue amount up to Max. Rs. 1000 allowed (Without any Derogatory History)

Minimum CIBIL score of 600 (Scores of -1 and 0 are allowed)

Derogatory History Matches: Suit Filed (SF), Willful Default (WD), Suit Filed (Willful Default) (SWD), Written Off (WO) or Settled & Written Off (Except for credit card with LPD more than 1 year old), Suit Filed & Written Off (SWO), Willful Default & Written Off (WWO), LSS (Loss), Suit Filed (Willful Default) & Written Off (SWW), DBT (Doubtful)

Annexure 1 - Special Profiles not to be funded

• CSD canteen cases• NRI profile• Policemen (excluding IPS cadre)• Politicians and other Politically Exposed Persons• Time share ,Motel and holiday companies (Excluding – Mahindra Holidays) • Plantation companies• Video Parlour operators • Single digit lottery• Multi level marketing• Private finance companies not registered with RBI• Advocates – non salaried, practicing advocates below high court. Excluding

those empanelled by Tata group companies.• Religious professions such as Priests, Pujari, Gurdwara priest etc• Chit fund and Nidhi companies• Bar cum restaurant owners without license.• Media reporters• Money lenders

Annexure 2 - LTV Grid

ModelNo FI Variant – Salaried

(Income Proof mandatory with minimum salary of Rs. 4500

per month)

No Income Proof – Self Employed (if ownership proof

of office/residence is documented FI will be waived subject to LTV being <= RAAC and tele connectivity norms

being met ) Cat 1 Prime 75% 70%Cat 1 70% 65%Cat 2 65% 60%Cat 3 60% 55%

Note 1: Any addition in RAAC LTV on account of funding insurance (KLI) will not be considered as LTV deviation

Note 2: Loan to Value limit given above is the maximum net Loan to Value on the On-Road price of the asset. On-Road price includes the invoice price(ex-showroom price), insurance, RTO charges and standard accessories. It excludes the cost of non-standard accessories.

Annexure 2 - LTV Grid (Cont.) LTV may be enhanced by 10% over and above the RAAC LTV’s mentioned in the LTV Grid if FI has been conducted and any one of the following documents are available. 1. Minimum annual ITR of Rs. 54K for self employed customers or FOIR less

than 50%

2. Utility bill: Tel. Bill, Electricity Bill, Water Bill - >= Rs. 750/- . The utility bill should be a Telephone Bill or an electricity bill not more than 3 months old of the same address as that of the residence address mentioned on the application form and should not be in arrears

3. Saving Certificates: NSC, PPF, Life Insurance receipts or FDR in last 12 months- >= Rs. 10000

4. Ownership proof of an Asset –Auto, CV or Property ownership proof.

5. Clean Repayment Track with no bounces and closed not more than 12 months old from the date of application – Minimum 9 months old equivalent to the proposed EMI

Annexure 3 - Model CategorizationCategor

y HHML BAL TVS Suzuki M&MRoyal Enfiel

d Yamaha HMSI

1 prime

Passion Plus, Passion Pro, Super

Splendor, Splendour Plus, Splendour Pro,

Splendour NXG, Pleasure, Glamour,

Glamour-FI, Achiever, CD Dawn/Deluxe,

Maestro, Ignitor

BAJAJ BOXER 150CC

PHOENIX, Scooty,

Access, Swish,

Hayate ,

CONTINENTAL GT

FZ, RAY

Activa, Activa I,

Yuga, Shine,Aviati

or, Dio, Neo, Trigger

1 CBZ,, Hunk Wego,

Apache, Jupiter, Sport

GS 150 R,

Rodeo, Duro, centuro, Pantero

Classic 500

Classic 350

Thunderbird Twinsp

ark

SZ, FAZER

CB Twister, , Unicorn, Unicorn Dazzler, CBR 250R, CBR 150R,

2 Impulse, Karizma Discover

Star city, Max 100 , Flame, Jive, Victor GX100, Victor GLX 125, XL HD, XL Super

Stallio, Flyte, Kine

3

Pulsar,Platina,

Avenger ,Eliminato

r

Sling Shot,

Sling Shot Plus, YZF R125,

YZF R 15 CBF

StunnerCBR 250R

Annexure 4 - Documentation Norms Branch Login documentation requirement• Application Form• Photograph• ID proof as specified in TCL KYC policy• Address Proof as specified in TCL KYC policy • Signature Verification Proof as specified in TCL KYC policy• Income Proof and Additional Document as specified in this

presentation• Bank Statement for the last 3 months • DAS Annexure if applicable• Two Wheeler Loan Eligibility checklist duly signed by the Branch Ops

executive• Dealer price listDisbursement documentation• Duly Signed Loan Agreement• Full Margin Money Receipt• Invoice and Insurance• PDC/ECS Mandates - One Security PDC for every six months plus one

for the total net finance amount Post Disbursement documentation• RC copy hypothecated in favour of TCL

Annexure 5 - Credit Deviation MatrixParameters Norm Deviations

LTV As specified in section 4

5% LTV deviation available with credit manager subject to a maximum of 85% provided minimum annual income of Rs. 2.4 lacs documented in case of salaried and Rs. 1.8 lacs in case of self employed

De-duplication Check Including CIBIL

As specified in Credit Norms

Aggregate overdue amount up to 5000/- would be Credit Manager level deviation (Without any derogatory history)Credit card w/off would be Credit Manager level deviation subject to last payment date to be at least 1 year old

Stability at residence and Office

As specified in Credit Norms Credit Manager can deviate up to minimum 6 months stability

Negative AreaAs specified in Credit Norms Cluster Collection Manager

can deviate on the same

Annexure 6 - Document Formats

Document Format

Two Wheeler Application Form

Loan Eligibility Checklist

IRR to Flat Rate Calculator

Two Wheeler DSA Agreement

Tele-verification Format

Sanction Letter to be issued by Branch Manager

IRR to flat rate calculator

TW DSA Agreement

TVR Format

Sanction Letter

Two Wheeler App Form

Two Wheeler Eligibility Checklist

Thank You

tata capital two wheeler loans salaried and self employed segment revised- june’14

Documents