The presentation has the framework designed for rating the credit worth of a customer for small business/petty trader loan

1. Credit Rating Framework – Small Business/Petty Trader Loan Banking and Financial Services By, PankajSaria Prasanna R

2. Small Business Loan For individual conducting business with or without hired labors Used to purchase equipments Repair and renovate existing equipment Acquire and repair the business premises or tools Generate working capital

3. Petty Trader Loan Individuals, proprietorships, partnership firms, co-operative societies For working capital and development activities Terms and Conditions Business units established for a minimum of 2 years Maximum: 25 Lakhs Non-agricultural land and building mortgage

4. Credit Score Calculation Fundamental elements Payment history – consistency on time and terms of the agreement Available credit – Total credit available Credit utilization – Credit of the total available which are in use Credit balances – Current account balances Depth of credit – Credit history and mix of credit type Recent credit – recently opened credit accounts and enquiries

5. Risk Assessment – Business (Internal) Weight: 50 %

6. Risk Assessment – Business (Internal) Weight: 50 %

7. Risk Assessment – Business (External) Weight: 30 %

8. Risk Assessment – Personal Weight: 20 %

9. Calculation – Final Rating

10. Thank You