Recently, I had a conversation with a banker, and this is how our conversation went.
Me: How will you underwrite a loan?
Banker: As usual, pa. We check the intent and the ability to repay.
He explained all the steps that we normally follow.
Me: Do you have any other tips for me?
Banker: We will check the credit bureau report. If a customer already has an HDFC credit card or any other loan with HDFC, then we will give more preference to this customer to provide a new loan.
Me: Why? Any specific reason?
Banker: Because, in the current market, HDFC would have done detailed due diligence about the customer. Their process ensures that everything is thoroughly scrutinized. Then, it will be easy for us to give a new loan to that customer.
WOW. It’s simple, right?
Key takeaway from this conversation:
1) Lenders can incorporate conditions like “Customers already evaluated by good lenders” into their underwriting policies so that it will be one of the filters for them.
2) Most importantly, each NBFC and bank should aim to have their name as part of the good lenders’ list eventually.
Do you add this tip to your underwriting policy?
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