Annexure 13

PERSONAL LOAN SCORING MODEL

Sl No Parameter
1

5
6

Age
< 30
30- 35
35- 40
40- 45
45- 50
50- 55
55- 60
>= 60
Educational Qualification
HSC or Less
Diploma
Graduate
Post Graduate
Doctorate
Employer Type
Own Business
Unlisted Pvt
Professional
Listed Pvt
MNC
PSU/Govt
Relationship with Bank
No Relation / Short Term
Long Term
Mode of Repayment
Standing instructions (auto debit)
Check off
EMI / Monthly Income
0 0.1
0.1 0.2
0.2 0.3
0.3 0.4
>= 0.4
Net Worth
< 150000
150000 300000
300000 500000
500000 700000
700000 1000000
>= 1000000
Income per Dependent
< 25000
25000 40000
40000 60000
60000 - 80000
> = 80000
TOTAL

Max score for

parameter
9

the Scores assigned to

sub parameters
8
9
8
6
4
3
2
0

8
2
4
4
8
8
24
0
0
12
18
18
24
10
0
10
15
12

15
15
12
8
6
4
1

7
0
1
2
2
4
7
15
0
5
8
12
15
100

Cut-off ranges proposed:

Score range
>80
76 80
71 75
61 70

Credit Grades
Grade 1
Grade 2
Grade 3
Grade 4

Lending decision

46 50
41 - 45

Grade 5
Grade 6
Grade 7

a)after credit enhancements

or
b) application to be referred to
next higher authority

36 40
26 35
< = 25

Grade 8
Grade 9
Grade 10

Clear sanction

Decline

Annexure IA
Description of Parameters used in Personal Loan scoring model:
1. Age
The loan applicant is given a score based on his age group and he or she can
fall into one of the following bins.
< 30
If the applicants age is 30 years or less
30 35
If the applicant age is 30 or more but less than 35 years
35 40
If the applicants age is 35 or more but less than 40 years
40 45
If the applicants age is 40 or more but less than forty five
years
45 50
If the applicants age is 45 or more but less than 50 years
50 55
If the applicants age is 50 or more but less than 55 years
55 60
If the applicants age is 55 or more but less than 60 years
> =60
If the applicants age is 60 years or more
2. Educational Qualification
The loan applicant is scored based on his or her academic qualification.
HSC or less
If the applicants highest educational qualification is HSC or lower
Diploma
If the applicants highest educational qualification is Diploma
Degree
If the applicants highest educational qualification is a bachelors
degree
Post Graduate If the applicants highest educational qualification is a post
graduate degree or diploma
Doctorate
If the applicant has a PhD
3. Employer Type
The applicant is scored based on his current employer.
Own business
If the applicant has his or her own business
Unlisted Pvt
If the applicant works for an unlisted private firm
Professional
If the applicant is a self employed professional
(lawyers, Doctors, architect etc.)
Listed Pvt
If the applicant works for a private company that is listed
MNC
If the applicant works for a multinational firm
Central/State
If the applicant is employed by a Public Sector unit or is a
Govt./PSU
Central / State Govt. employee.
4. Relationship with Bank
The applicant is scored based on his past relationship with SBT.
Long Term
If the applicant has an advances or deposit relationship with the
Bank for 3 years or more
Short Term
If the applicant has an advances or deposit relationship with the
Bank for more than or equal to 1 year but less than 3 years
No relation
If the applicant has an advances or deposit relationship with the
Bank for less than 1 year or if the applicant does not have any
previous relationship with the Bank.

5. Mode of repayment
The applicant is scored on the basis of his chosen mode of repayment.
Elec.transfer / S I
If the applicant makes the EMI payments through electronic
transfer of funds or through standing instructions to the bank
Check off
If the applicant makes EMI payments through check off
6. EMI / Monthly Income
Monthly income is calculated as the monthly take home income net of taxes
0 0.1
If the EMI is less than 10 % of the monthly income
If the EMI is greater than or equal to 10 % but less than 20 %
0.1 0.2
of monthly income
If the EMI is greater than or equal to 20 % but less than 30 %
0.2 0.3
of monthly income
If EMI is greater than or equal to 30 % but less than 40 % of
0.4 0.4
monthly income
>= 0.4
If the EMI is greater than or equal to 40 % of monthly income
7. Net Worth
Net worth is calculated as the value of the applicants assets less the value
of his outstanding liabilities.
< 150000
150000 300000
300000 500000
500000 700000
700000 1000000
>= 1000000

If the net worth is less than Rs.1.5 lac.

If the net worth is greater than Rs.1.5 lacs but less than
Rs.3 lacs
If the net worth is greater than Rs.3 lacs but less than Rs.5
lacs
If the net worth is greater than Rs. 5 lacs but less than Rs.7
lacs
If the net worth is greater than Rs.7 lacs but less than Rs.10
lacs
If the net worth is greater than or equal to Rs.10 lacs.

8. Income per dependent

Annual income is calculated as the applicants net annual take home income less
taxes. The number of dependents is the number of people dependent on the
applicant for their expenses including the applicant himself. For example, if the
applicants parents are the only dependents, the income per dependent is
calculated as Net Annual Income divided by 3 (Father, mother and the applicant
himself).
< 25000 If the income per dependent is less than Rs.25000/25000 40000 If the income per dependent is greater than or equal to
Rs.25000/- but less than Rs.40000/-.
40000 60000 If the income per dependent is greater than or equal to
Rs.40000/- but less than Rs.60000/-.
60000 80000 If the income per dependent is greater than or equal to
Rs.60000/- but less than Rs.80000/-.
> = 80000 If the income per dependent is greater than or equal to
Rs.80000/-