Front end Distribution Channels, Paramters for loan consideration, Value parameters for Borrowers, Sample chart explaining the SME loan process, Workflow model for sanction and disbursement process.

1. SME Frontend and Backend
Naveen Panchal
Neha Jain
Malay Srivastava
Vishal Patil
PGDM-Business Design (2011-13)
Welingkar Institute of Management Development &
Research, Mumbai

2. FRONT END DISTRIBUTION
CHANNELS
• Relationship managers
•
In-house •
•
Websites
Existing customers Database.
Branches
• Direct Sales Agent ( 1% of lending
External amount)
• Charted Accountants (1-2% of
lending amount)
agencies • Rating Agencies.

3. WORKFLOW FOR SME SALES TEAM
Advertising Events Industry Outboun Sales Branch
Lead (SMS, Internet
associatio referrals
3
genera , Inbound Call d tele- walk-in
Centre) n tie-ups calling
-tion
Sales
Coordinat
or
Head
Sales
...
Sales team
Propos Relationshi
Relationshi
p Manager
al Activities performed (RM)
p Officer
genera- (RO)
Contacting customer for preliminary
tion information
In-principle check on viability of
lending Proposal Given to
Compilation of proposal
generate local Credit
d Hub

4. Parameters for Loan
consideration
• Integrity
Organization
Individual
• Credit Rating
• Intentions
• Debt Equity ratio
• Educational
Background • Balance Sheet
• Past Experience in the • Feasibility of the
Sector Product
• Owners Capital • Lenders experience
with the organization
• Capability to Pay back
• Asset and Mortgages
offered

5. Value parameters from Borrowers
Perspective
 Interest Rate.
 Turn around Time.
 Collateral.
 Pre sanction amount facility.
 Documentation.
 Products/Schemes available.
 Relationship with Bank.

6. Sme applicant bank
repayment
disbursement processing

7. WORKFLOW FOR SANCTION 14 day
12 day
10 day
AND DISBURSEMENT PROCESS
1 3 6
8 day
6 day
(1/2)
7
Credit
Support
Receipt of
Data entry
for credit
rating and
File with
ratios and
Request for
advocate, valuer
4 day
2 day
proposal credit and TEV reports
Officer financial rating
(where required)
analysis Time meter for
cases where TEV is
not required
Proposal
2 4 7
File with Satisfactory
Study of file, pre- inspection response to
Check on report
sanction visit, customer
Credit complete-
customer meeting queries, prep
Officer ness of
Complete and raising aration of File with
proposal
proposal customer queries appraisal appraisal
note note
Incomplet 5
e proposal In-principle
decision to go-
Sanc- ahead with
tioning
Authority
Returned proposal or
not, together
to RM/RO for with Credit
completion Officer

8. WORKFLOW FOR SANCTION
AND DISBURSEMENT PROCESS
8 11 12 13 14
8
Credit
(2/2) Receipt of
advocate,
valuers and
Issue of final
sanction
letter with
Preparation
Execution of
documents in
presence of
Vetting of
Support and stamping documents
TEV reports signature Branch
Officer of documents by advocate
(where from Credit Officer/
required) Officer Manager
File with
reports
Sanctioned and
9
14 day vetted
documents
12 day released for
Check on
disbursement
Credit advocate, 10 day
Decided
Officer valuers and files 8 day
TEV reports
6 day
4 day Disburse
File with 2 day -ment by
reports
Branch
10 Time meter for
cases where TEV is
Final not required
Sanc- sanction by
tioning Sanc-
Authority tioning
Authority

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