Small and Medium Enterprises (SME) Distribution Channels


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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.

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Small and Medium Enterprises (SME) Distribution Channels

  1. 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. 2. FRONT END DISTRIBUTIONCHANNELS • Relationship managers •In-house • • Websites Existing customers Database. Branches • Direct Sales Agent ( 1% of lendingExternal amount) • Charted Accountants (1-2% of lending amount)agencies • Rating Agencies.
  3. 3. WORKFLOW FOR SME SALES TEAM Advertising Events Industry Outboun Sales Branch Lead (SMS, Internet associatio referrals 3genera , Inbound Call d tele- walk-in Centre) n tie-ups calling -tion Sales Coordinat or Head Sales ... Sales teamPropos Relationshi Relationshi p Manager al Activities performed (RM) p Officergenera- (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. 4. Parameters for Loan consideration • Integrity OrganizationIndividual • 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. 5. Value parameters from BorrowersPerspective Interest Rate. Turn around Time. Collateral. Pre sanction amount facility. Documentation. Products/Schemes available. Relationship with Bank.
  6. 6. Sme applicant bank repaymentdisbursement processing
  7. 7. WORKFLOW FOR SANCTION 14 day 12 day 10 dayAND DISBURSEMENT PROCESS 1 3 6 8 day 6 day(1/2)7 CreditSupport Receipt of Data entry for credit rating and File with ratios and Request for advocate, valuer 4 day 2 day proposal credit and TEV reportsOfficer 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 tioningAuthority Returned proposal or not, together to RM/RO for with Credit completion Officer
  8. 8. WORKFLOW FOR SANCTION AND DISBURSEMENT PROCESS 8 11 12 13 148 Credit (2/2) Receipt of advocate, valuers and Issue of final sanction letter with Preparation Execution of documents in presence of Vetting ofSupport and stamping documents TEV reports signature BranchOfficer 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
  9. 9.  INDIAN Financial Network (INFINET),: the communication backbone for the Indian banking and financial services industry spearheaded by the Institute for Development and Research in Banking Technology (IDRBT)
  10. 10.  Finacle: Finacle direct banking solution is a comprehensive solution for banks to directly acquire, track and service customers, through the Internet, mobile or call center channels, in the complete absence of a brick and mortar infrastructure. Built on new-generation technology, it provides an end-to-end platform that supports the full-fledged delivery of a comprehensive range of assets and liabilities solutions, facilitated through direct access to the customer 24/7, 365 days a year