Credit Grouping Implementation Solutions

In any two organizations, if the borrowers or guarantors are common, the organizations are said to be in the same Group. The Group concept applies even in case of sharing of common collateral.

Business Challenges That You Face

When there exists an inter-relationship between borrowers of two organizations, there are chances that the banks may face a few hitches. Upgrading their commercial risk ratings systems to capture the details of group accounts that are connected to each other could pose these challenges:

• In some of the credit proposals, the details of group accounts may be incomplete. There is no automated system to validate whether group account details are complete.
• There is no centralized system to view all the group accounts quickly.
• Lack of communication occurs and any addition or deletion of a borrower in a group is not automatically updated throughout the banks.

For example, consider a situation wherein a borrower X has already availed an SME loan and another borrower Y has been sanctioned a corporate loan. If X and Y are in the same group, the sanctioned details are not automatically updated in the SME loans department and the Corporate Loans department.

• There is no centralized system to quickly view all connected and related accounts including co-borrowers and third-party providers.
• Bank regulators need to fix maximum ceilings for bank lending based on group exposure.
• Supervisors need to monitor single borrower exposure and group borrower exposure.

What We Offer You

Banks have framed internal rules for grouping the borrower customers. The rules vary for types of customers. IT acts as an enabler in adhering to these rules and grouping the credits as desired. The related information for different credits and borrowers are gathered and presented under group structure in one common screen. Kumaran can identify the commonalities and can frame suitable identifiers to group the credits for wholesale customers and retail SME customers as per the client bank's policy guidelines.

Your Assured Benefits

Kumaran has developed the most powerful, complete, and comprehensive lending solutions for our banking clients' retail SME customers and wholesale customers. The applications can provide easy-to-use lending tools to originate loans, underwrite, and evaluate loan packages based on customizable lending policies.

The loan application system provides these benefits:

• Reduces lending risk.
• Optimizes loan processing time.
• Reduces loan processing cost.
• Provides better management control.
• Increases customer satisfaction.