SMALL AND MEDIUM ENTERPRISE LOAN PROCESSING
To manage Facilities given to the Small and Medium Enterprise customers, Avighna has been using ICA (International Credit Analyst) software for the past 7-8 years. Though it has been able to manage the basic requirements of the bank, it has not been enhanced for a long time and does not handle lot of new features that are required for decision making before facilities are approved. With changing times Credit Approval decision making has become more challenging and new tools / methods are required to do this. ICA does not currently handle these issues.
New System Features
To address all the shortcomings of ICA, SME LP has been built ground up after discussion with various groups in the organization. Requirements have carefully been analyzed and various modules have been developed to address the concerns raised by the users.
The entire software has been built as around an industry standard database – Microsoft SQL. The architecture used is thin client having a separate server component which handles the database connectivity and also Business Logic. The Client component which is essentially the User Interface connects to the Server Component using the internet.
Scoring Engine, Decision Engine, LGD Modeling other such tools have been built into the system to system to make decisioning more relevant and scientific
Financial Analysis Engine has also been built which generates Profit and Loss, Balance Sheet and other financial ratios required for analysis. The ratios and other calculations are parameter driven and be modified by the user
The SME LP program is arranged in the following functional groups.
- Masters – This area is where the various parameters to control the process of loan processing are set.
- Call Report - In this area, details of new contacts with potential Customers further changes to their basic details are maintained. This is managed mainly by the Relationship manager
- Application – New proposals or updates to existing facilities, and allocation of who is going to manage which areas of the application processing is updated in this set of modules. This is mainly controlled by the Credit Head.
- Proposal – A complete proposal is built in the modules listed under this set of programs this done mainly by the relationship manager
- Credit Analysis – The Proposal is scrutinized and the Credit Analyst who has been assigned this account and he / she put in his comments and recommendations.
- Sanctioning – Mainly used by the Sanctioner, these sets of modules provides results from various modeling tools and lets the sanctioner approve / reject or partially approve the loan and take final decision on the application.
- MIS – All applications are analysed using the programs in this area.
General procedures Followed in the program.
Main user types
The System will be used by the following user types
- Administrator - The main function of the Administrator would be to create user accounts, set access levels to the users and maintain the various parameters in consultation with the various policy makers involved in the SME loan processing. Essentially he will have access to the items in the Master menu
- Relationship Managers - Who are in touch with the Customer directly and are responsible in picking up necessary information from the customer to help monitor the health of the facility provided / to be provided to them.
- Credit Analyst – Analysis the information provided by the customer and see if it is in line with the set rules and policies.
- Sanctioner – Reviews Credit Analyst’s comments, looks at results from various modeling tools and takes the final decision to either approve or partially approve or reject the said proposal
- Credit Admin. -- Monitors the facility and sees whether the customer meets all necessary conditions based on which the facility has been approved.