INFORMATION MEMORANDUM

OCTOBER 2016

Table of Contents

S No Item Page No

1 Executive Summary 2
2 Introduction 3
3 Shareholding Pattern 4
4 Board of Directors 4
5 Business Model 8
6 Portfolio Summary & Analysis 16
7 Financial Highlights & Business Plan 20
8 Annexure 1: Branch Expansion Plan 23
9 Annexure 2: Brief Customer Profile of customers 24
for Sanctioned Cases – Mar ’16 to Oct ‘16

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 1. EXECUTIVE SUMMARY

Name of the Company Nivara Home Finance Limited ( NIVARA)

Nivara Home Finance Ltd.,

No. 22, 23, 24, 25/101/3, 3rd Floor, BNR Complex,
Sri Rama Layout, Opp. to RBI Layout,
7th Phase, J P Nagar, Bengaluru – 560078.
Registered Office Address
CIN: U65922KA2014PLC077547.
Phone : +91 80 – 2655 2822 / 77
Email: [email protected]
Website: www.nivarahousing.com
Nivara provides loans for purchase of flats/apartments,
Activity construction of homes, home improvements and home
extensions to the un-served and under-served customers.
Nivara was incorporated on December 02, 2014 under The
Companies Act, 2013. Later, the company commenced its
Type of Entity operations in October 2015 after obtaining the necessary
Certificate of Registration from the National Housing Bank
(NHB) in September 2015.
Name Whether Promoter /
Director
Mr. C V Rao Promoter, Director
Mr. Sunil G Rohokale Promoter, Director
Name of Promoters / Directors Mr. Amit Bhagat Promoter, Director
Mr. Monik S Koticha Promoter, Director
Ms. Sneh N Koticha Promoter, Director
Mr. MSR Manjunatha Independent Director
Mr. Subash Gandhi Independent Director

Auditors M/s. Sagar & Dhananjaya

Funding Requirement Rs. 10 Crores

Security Hypothecation of Book Debts

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 2. Introduction
Nivara is headquartered in Bengaluru with an initial scope of operations in the state of
Karnataka before embarking onto its national footprint.
"Nivara" - A word made up of the Sanskrit verb " + " (Ni + Vru), means to cover,
shelter, haven etc. One of the three basic needs of humans, viz. Food, Clothing and Shelter
( , , ), a place which not only fulfils the basic function of
protecting us from rain, snow, cold, heat, storm etc., but also nurtures an atmosphere
necessary for a sound overall development of mankind.

Housing has come a long way from primitive cave dwellings in the Stone Age to modern day
high rises; but the basic function - providing a safe haven, a nest, a cocoon - to rest and to
grow - remains the same. While the concept of housing has not changed from time
immemorial, what can bring in a change is the way we provide access to finance to those in
need of shelter.

India has seen one of the most severe housing shortages across the globe despite the robust
growth in the housing finance sector in the past couple of decades. However, the growth has
predominantly been restricted to the affluent sectors of the society and thus there exists a
large window of opportunity in the informal (low income) sector towards affordable housing
segments. According to a study by KPMG 2014, India needs to develop 110 million housing
units including the current shortage to meet the government’s vision of ‘Housing for All by
2022’. It is estimated that 50% of this demand is from urban affordable housing towards the
LIG and MIG segments of households. Nivara looks forward to meet this demand by
participating in this grand vision.

One of the major challenges faced by the lower income households is the lack of financing
options to purchase their dream homes - either due to the lack of documented income or due
to the lack of properly established income assessment methods. Nivara aims to bridge this
gap by providing organized home loan solutions to the unorganized sector through innovative
credit delivery mechanism. The loans provided by Nivara can be used for purchase of
flats/apartments, construction of homes, home improvements and home extensions.
Additionally, Nivara provides loan against property for personal and business consumption.

2.1 Company Background

The genesis of Nivara Home Finance Limited is traced to C V Rao and Sunil Rohokale,
professional colleagues for two decades and a group of like-minded professionals from the
retail banking industry, primarily in the housing finance & real estate sectors having decades
of rich experience in this field. Nivara was incorporated on December 02, 2014 under The
Companies Act, 2013 with an objective to provide home loans mainly to the informal sector
of urban India. Later, the company commenced its operations in October 2015 after obtaining
the necessary Certificate of Registration from the National Housing Bank (NHB) in
September 2015.

2.2 Borrowings

As on October 31, 2016, we have the following limits from Banks/NBFCs/FIs:

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 Amount Sanctioned Amount Outstanding as on
Sl. No Bank/NBFC
(Rs crore) Oct 31, 2016 (Rs. crore)
1 IFMR Capital 10.00 2.00*
*We have undrawn balance of Rs. 8 crore from above IFMR capital term loan.

3. EQUITY SHAREHOLDING PATTERN

Total
DIN No. / % Investment No of
Shareholder's Name PAN No. Shareholding (Rs.) Shares
CHALAMALASETTI VENKATESWARA
RAO 6994756 19.96% 299,37,500 29,93,750
MEHERVANI CHALAMALASETTI ACUPC6062C 0.04% 62,500 6,250
SUNIL ROHOKALE 1896946 19.96% 299,37,500 29,93,750
GEETANJALI S ROHOKALE AJAPR8300D 0.04% 62,500 6,250
AMIT BHAGAT 2529737 19.96% 299,37,500 29,93,750
SANGEETA BHAGAT AKMPB6167B 0.04% 62,500 6,250
MONIK S KOTICHA 1208653 20.00% 300,00,000 30,00,000
SNEH NAQQASH KOTICHA
CONTRACTOR 829307 20.00% 300,00,000 30,00,000
TOTAL 100.00% 1500,00,000 150,00,000

4. BOARD OF DIRECTORS

Present Residential Date of

DIN Full Name Designation Appointment
Address
Apt No 203
Mr. Sunil Gangadhar Gomantashram, Chitranjan
1896946 Director 22nd Nov 2014
Rohokale Road, Ville Parle East,
MUMBAI 400057
C- 906 Cassia Block,
Mr. Chalamalsetti Brigade Millennium
06994756 CEO & MD 23rd Jan 2015
Venkateswara Rao 7th Phase, J.P. Nagar,
Bangalore – 560078
1301, 13th floor,
Godavari,Worlisagar,CHS,
2529737 Mr. Amit Bhagat Director 22nd Nov 2014
Pochkanwala Road,
Worli,MUMBAI 400030
2301,Raheja Princess
Mr. Monik Sameer
1208653 S.K. Bole Road, Dadar Director 22nd Nov 2014
Koticha
West, MUMBAI 400028
1901/1902 Rameshwaram
Ms. Sneh Naqqash Apartments, K.D.Marg,
829307 Director 3rd Feb 2015
Koticha Contractor Prabhadevi,MUMBAI
400028
204,Sandalwood Apts,
07199681 Independent
Mr. Subhash Gandhi No 2, D.P.Road, Aundh 23rd Dec 2015
Director
PUNE-411007
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 B-102,Temple Trees Apts,
JP.Nagar, 6th Phase Independent
07360599 Mr. MSR Manjunatha 23rd Dec 2015
BANGALORE -560078 Director

Profile of the Board of Directors:

Name of the Director Brief Profile

Mr. Sunil Rohokale founder of the Private Equity Real Estate

Practice at ASK, is currently Chief Executive and Managing Director
of ASK Investment Managers Pvt. Ltd., renowned for its strong
research based Investment Management, Asset Management, Private
Equity, Wealth Advisory and Multifamily Office Business.

Mr. Rohokale is responsible for the vision of ASK group and

spearheads the strategy of the group, which manages 11,000 Crores
Assets under management in Equities, Real Estate, Private Equity
and Wealth Advisory.

Prior to joining ASK in September, 2008, he was the Managing

Director & Chief Executive Officer of ICICI Home Finance Co. Ltd.,
one of the largest mortgage companies in India & a wholly-owned
subsidiary of ICICI Bank. He was a member of the core team who
started the mortgage business of ICICI Bank. Under his leadership
Mr. Sunil G Rohokale ICICI Bank has achieved a leadership position in the mortgage and
real estate business with a real estate portfolio of US$ 18 Bn which
was half of ICICI Bank’s retail assets. He is amongst the rare breed
of professionals with experience in the assets, liabilities and
investment. He enjoys strong credentials in setting up new businesses
and building strong professional teams that deliver results. He has 20
years of Banking, Financial Services and Investment experience.

He holds an MBA from Symbiosis Institute of Business Management

and a Bachelors of Mechanical Engineering from Govt. College of
Engineering, University of Pune.
Mr. C V Rao, has over 24 years of experience in the Banking and
Financial services Industry with a proven track record in managing
portfolio risks. He has got a unique blend of experience with a wide
variety of retail banking products - secured and unsecured lending
products, Investment products, Liability products and financial
inclusion; and cross-section of functions - Product design, Business
Development and Marketing, Sales and Distribution, Underwriting,
Mr. C.V.Rao Credit Risk Strategy & Debt Management.

CV has held leadership positions in India’s leading private sector

banks like ICICI Bank, IndusInd Bank and ING Vysya Bank. At
ICICI Bank (1992-2008), he was part of the core team who started
the mortgage business and built assets over 50,000 Crores between
1999 and 2005, which enabled ICICI Bank to reach the lead position
in the mortgages' business. Before embarking on his entrepreneurial
journey, his last stint was with ING Vysya Bank (2009-14) where he
was spearheading two key portfolios for the Bank at an all-India

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 level: one as Business Head – Agriculture and Rural Banking,
Priority Sector Lending, Gold Loans and Financial Inclusion; and the
other as Business Head – Consumer Assets.

C V Rao is an M.Com and an MBA from Osmania University,

Hyderabad. He also had an enriching experience of over two years at
IIM, Ahmadabad as Research Assistant in Finance and Accounting
area. CV has published in reputed journals to his credit. During his
career, he has traversed the length and breadth of the Indian markets.
Mr. Amit Bhagat has co-founded private equity real estate practice at
ASK in 2008 and is MD & CEO of ASK Property Investment
Advisors Pvt. Ltd. At ASK, Amit has raised and manages/advises
three domestic funds and an offshore fund amounting to US $500 Mn
of real estate investments. He has invested in 15 real estate projects in
five cities.

He has spent nearly two decades in banking and financial services of

which he has spent more than 15 years in the mortgage and real estate
Mr. Amit Bhagat business. Amit worked in various capacities in ICICI Bank Ltd.
including as National Credit Head for the mortgage/real estate
financing division and as Head of ICICI Property Services which
comprised of transactions, investment banking, research & advisory.

Amit is known for his skills in identifying new growth frontiers,

strategic agility and negotiation, leading to win-win partnerships with
prospective partners. Amit is a Chartered Accountant
Mr. Monik Koticha is part of the promoter family of ASK Group, a
diversified financial services company and has been with the firm for
over 10 years working in various different capacities. He is currently
spearheading the groups foray into new strategic businesses with a
focus on creating a credible lending platform through a qualified and
regulated Non-Banking Financial Company. Prior to this, he has
worked in the research team which analysed Indian Corporates and
Mr. Monik S Koticha tracked a universe of 300 listed companies for investment research
for ASK Group.

He was a key member of a 400 Crores fund with a strategy

identifying and investing in quality performing companies in the Real
Estate & Infrastructure sectors in India. Along with this, he helped
advise the clients in their investment planning and helped identify
suitable investments in direct real estate, unlisted small and medium
scale enterprises and technology companies.

Monik is also responsible for managing the Promoter's Family Office.

He is responsible for identification and investment of the proprietary
wealth in listed Equities, Start-up Companies, Consultancy
Businesses, Retail Businesses along with identification and
management of all the real estate investments.

Monik is known for his ability to identify new business opportunities

and provides strategic inputs in qualitatively growing these
companies in scale through processes & technology automation. He
is a PG MSc from University of London in International Management
and a Bachelor in Management from University of Mumbai.
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 Ms. Sneh Koticha is currently holding Directorships at Asit Koticha
Foundation and at JCB Salons Private Limited. At present, she is
employed with ASK Group. Sneh is an MBA from Schulich School
of Business at York University, Canada - Specialized in Finance,
Ms. Sneh N Koticha Real Estate and Not-for-Profit Management. She did her Bachelors in
Business Management Studies from Mumbai University and
specialized in Financial Studies.
Mr. Subhash Gandhi is a renowned lawyer specialized in civil law
matters for over two decades. He spearheads S. Gandhi Associates - a
leading law firm incorporated in 1993 and specialized in corporate
law, conveyancing, dispute resolution & arbitration. S. Gandhi
Associates is empanelled by leading banks, financial institutions and
housing finance companies like ICICI Bank, SBI, Standard Chartered
Bank, Kotak Mahindra, Axis Bank, HDFC Ltd., HSBC etc. The firm
also advises leading real estate funds like ASK Real estate funds,
LICHFL AMC Ltd etc.,

Subhas Gandhi is passionate about teaching and an excellent trainer.

Mr. Subhash Gandhi He conducts workshops extensively to the banking professionals on
wide variety of subjects covering legal aspects of the title of various
properties, collateral management, Fraud detection, Fraud risk
mitigation etc., He is an honorary faculty member at various Law
Colleges and leading commerce colleges teaching both undergraduate
and post graduate law students.

Mr. Subhash Gandhi is a B. Com, LLB and LLM from Pune

University and is registered with the Maharashtra and Goa Bar
Council. He is based out of Pune.
Mr. MSR Manjunatha is a Post Graduate in Science from the
University of Mysore, and Graduate in Law from the Bangalore
University. He is a professional banker with 40 years of experience,
in India and abroad. He started his career at Canara Bank, where he
specialised in industrial credit and rehabilitation of sick units. He was
instrumental in starting Canbank Factors Ltd., a Factoring Services
company, and held the position of Executive Vice President. He later
worked in Jakarta, Indonesia, in Factoring and domestic banking
business.

In his 13 years of service at ING Vysya Bank Ltd., he was involved

Mr. MSR Manjunatha
in all aspects of credit risk management function, for 10 years. This
included regulatory & credit policy matters, credit appraisal of
wholesale and retail borrowers, delinquency management, and
portfolio reviews. The last position held by him at ING Vysya Bank
was as Chief Audit Executive, responsible for the Internal Audit
function of the Bank.

Since 2013, he is Director – Ratings at Brickwork Ratings India Pvt

Ltd Bangalore, a SEBI and RBI accredited Credit Rating Agency,
and a Member of its Central Rating Committee.

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 5. BUSINESS MODEL

One of the major challenges faced by the lower income households is the lack of financing
options to purchase their dream homes - either due to the lack of documented income or due to
the lack of properly established income assessment methods. Nivara aims to bridge this gap by
providing organized home loan solutions to the unorganized sector through innovative
credit delivery mechanism.

5.1 Target Customer & Sourcing Strategy

a. Who is our Customer?

Our target customers are basically the segment which is denied by the formal banking system
due to the lack of documentation supporting their incomes. In search of our targeted customer,
we have met wide variety of customers in the un-served and under-served segments of
population through various pre-launch activities. The experience has been very encouraging and
the need for the home loan is huge in these segments. There exists, undoubtedly, a massive
market. Basis the experience, we are now in a position to target our customer with much more
vigour. We are confident that we can create our own niche segment in the coming years.
However, strong credit model that is capable of assessing their incomes and understanding the
risks associated with this lending to this segment will be the key.

Our Targeted Customers are mix of

• Salaried workers of un-organized sector (e.g. drivers, factory workers, housemaids etc.,)
• Salaried employees of small and medium scale enterprises. (Small & Medium of MSME
sector)
• Self-employed micro-entrepreneurs (e.g. Vegetable/Fruit vendors, Provision Store
owners, Carpenters, Electrical and Plumbing contractors, Drivers of Self/privately owned
Vehicles (Goods carriers like Tractors, Trucks, Tata Ace, Passenger Vehicles etc.,),
Tailors, Automobile mechanics and all such self-employed people belonging to informal
sector.
• Self-employed entrepreneurs of micro and small scale enterprises (Micro & Small of
MSME sector)

b. Sourcing Strategy
Our primary objective and focus is to target the un-served and under-served customers. Our focus
is to organize various lead generating activities thru our Direct Sales force in the targeted
markets. We do not intend to entertain any kind of indirect sourcing either through DSAs or thru
connectors etc.,

Direct Sourcing
• We recruit Sales force directly on company’s rolls. The qualification ranges from 10th std to
Graduates with an average age of 25 years. The candidates should have a flair for selling
home loans thru micro marketing activities. The sales force is provided on the job training for
about 3 months before taking them on company rolls. This is to have a check on the
seriousness of the executives and their interest in Home loan business in addition to control
the attrition levels.

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 • The average fixed salary per month of the field force is around 10,000 per month. Over and
above the incentives range from 0.1% to 0.5% of the disbursement value depending on the
disbursement slab. One Sales Manager typically controls about 9 sales executives.

Demand Funnel:
Our Demand Funnel consists of Lead generation thru various micro-marketing activities:
a. News Paper Inserts: Extensive leaflet distribution in the targeted areas.
b. Shop to shop & door to door pamphlet distribution in the pre-identified targeted areas
where un-served and Under-served customers reside or operate their businesses.
c. Leaflet distribution activity mainly focuses on high footfall areas like temples, Petrol
Pumps, outside factories (when the shift change happens), Bus stops and Vegetable and
market areas and at select SROs.
d. Home Loan Camps: Extensive camping in Pockets like Bannerghatta, Basavanpura, CK
Palya, Weavers’ colony, Shanebhoganahalli, Anjanapura, Kembattali, Ariekere, Gottigere,
Hulimavu, Jangalpalia, Vaderamanchanahalli, Jigani, chunchun ghatta, Konankunte and so
on. These pockets are typically beyond ORR and within a radius of 50 km of Bengaluru
central area (i.e. MG Road) and about 25 kms from our branch offices.
e. Worksite Presentations: We identify various micro enterprises and factories where most
of un-served customers work as factory workers. The presentations are made during lunch
hours or closing hours of their offices. Sometimes, the presentations are done through
plant managers/HR managers depending on their co-operation.
f. Walk-ins and Referrals: Leads are also generated through direct walk in customers or
through references from our existing customers with the level of increased operations.

5.2 Ticket Size

As per policy, the loan size targeted ranges from 3 to 25lacs. Based on our initial experience, we
chose to restrict the loan size below 10 lacs.
5.3 Product portfolio – As on date
Interest Rate Tenure Remarks
Product Loan Amount Interest Rate
Type (months)
Normal HL 3 to 10 lacs 18.00% Upto 240m
Floating
Normal HL 3 to 10 lacs 18.50% Upto 240m
Fixed
PMAY-CLSS
Nivara Nivas 3 to 10 lacs 21.00% Upto 180m
Floating Subsidy Scheme

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5.4 BUSINESS PROCESS FLOW

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5.5 Underwriting Methodology:

a. Establishing Ability to repay

The process of evaluating the ability to repay, in the absence of any income documents,
becomes the most crucial and deciding factor in the entire underwriting process. The steps in
brief are:

Ø Once the Home loan enquiry is generated by the field staff, we ascertain the
customer’s seriousness by obtaining CIS (Custer Information sheet) along with
customer’s intent to take home loan with his written consent.
Ø Based on the CIS, welcome call is initiated from the central/branch office to re-
confirm the customer’s interest and seriousness in obtaining home loan. Upon positive
affirmation from the customer, we obtain the bureau scores to check the customer’s
credit history. Currently, we use both CIBIL and Crif High Mark Scores.
Ø Based on the comfort from Bureau Scores/checks, a personal discussion (PD) meeting
with a credit officer is fixed at his place of residence/business along with the major
family members being present. The presence of all the Income earning members is
must during the PD. More information on the PD is provided in the following section.
Ø Conducting a personal discussion as detailed in the following paragraphs is the most
critical aspect in the entire home loan process. The personal discussion sheet is
designed such was that it extracts all the relevant information from the applicant’s
family.
Ø Back Ground Verification (BGV) & Third Party Verification (TPV) of customer’s
occupation, current residence and proposed property. The BGV is done by in-house
team and TPV is done thru empanelled agencies.
Ø Finally, an LRS (Loan Recommendation Sheet) is prepared to enable the Approving
authority to take a decision after capturing the details of income, savings, borrowings,
expenses etc.,

Personal Discussion (PD)

Personal Discussion with the customer is the most key and crucial aspect of the entire
process. Income Assessment is done by the in house credit officers while the support is
taken from empanelled lawyers and engineers for title evaluation and property valuation.
Lot of emphasis is done on the income assessment process based on available data in any
form (dairy updates, chit statements, expense trackers, salary slips and so on....). The
same is validated during the Personal discussion. The key is what you see, understand and
comprehend the life styles of the borrowers. What kind of comfort is being derived
during the course of personal discussion with all the family members is the KEY.

Credit Officer spends good amount of time to understand various facets of the borrower.
Practically, the major comfort is derived thru Personal Discussion. All the aspects are
carefully captured in PD sheet to enable to construct the LRS which will enable the
Approving Authority to take a decision:

• Venue of PD: The Discussion is conducted at borrower’s residence in presence of

Spouse and other key family members especially the income earning members to have
buy-in and also to bind all of them together for the loan repayment.

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 • Family History: Detailed family history of both Husband and Wife is captured as
how and when they landed up in Bengaluru, since how long they have been staying in
current residence. In the process, we also try to ascertain if any of the spouse’s parents
or their kith and kin has the financial comfort. In the process, we will also try to figure
out who is in a best position to provide us the Guarantee to the loan among the
family’s friends and relatives.
• Lifestyle habits: We do get some tendencies by merely looking at the facilities that
the borrowers enjoy at home and their by observing their living styles. The probe is to
check what kind of mobile phones, TV, Consumer durable to check the splurge of the
family. The kind of two-wheelers they own and while purchasing whether they
exercised any conservative approach or casual approach and so on. Whether they buy
these consumer goods on cash or thru loans
• Borrowing habits: This segment has got access to Gold Loans, MFI Loans, Hand
Loans, and Chit Funds. While Gold loans may not have track since they are paid on
annual basis, we might have track for MFI loans but they are of low tick sizes (below
50k). Chit fund is a double edged sword – if the customer maintains some record
keeping, we do get some direction whether the borrower is a saver or borrower. The
trickier part is the Hand loans one.
• Aspirations and Ambitions: The questions posed are typically their immediate
aspiration other than building house – for e.g., next big purchase, next big family
function, or next planned vacation and so on...the kind of schools that their children
go to... and so on
• Assets and Savings: Assets they own or inherited or accumulated over the period
indicate the strength of the family. Saving habits of this segment is predominantly
thru un-organised means like chit funds and gold. Most often than not the top most
priority is buy a plot of land. Majority of the leads that we get is for self-construction
– where they already own a plot and they come to us for funding for cost of
construction either full or part of it.
• Income Assessment/Validations: We validate to the extent possible every Income
that a family earns. This is the most cumbersome and yet crucial element in the
Income assessment process. For eg., If a family has three earning members (wife,
husband and Son), we ensure the following:
I) House maid working at 3 houses: We reach out to those 3houses and validate:
a. Income b. Longevity & Regularity c. Behaviour d. Borrowing habits etc.,.
e.Whether the master renews her service etc., etc.,
II) Labour Contractor: We visit the places of contract including works completed
in the recent past along with the ongoing projects to validate the contract
value, progress, payment terms etc., to arrive at his earnings from the works.
III) Delivery Boy: Normal employment verification at his office.

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 b. Risk Drivers
Since the target is the lower income segment, the loan amounts required are also on the lower
side. Every case, notwithstanding the ticket size, would be assessed for risk based on the
overall profile of the applicant family and not the loan amount, Hence for underwriting
purposes it is the profile that drives the risk assessment and not the loan amount.

c. The concept of MHI (Monthly Household Income): the focus is on Household and not
the individual
The lending to this target is driven by the premise that the loan is being given to the family of
the applicant and not applicant alone. Incomes of other income earners in the family can also
be considered and they would be co-applicants to the loan. It needs to be noted that in this
target set of customers, it is quite common to find more than one income earner in the family.
Given their constant requirement for cash, all capable members of the family work and add
their bit to the household income. It is therefore the family that is lent the money and not just
the main income earner.

d. Income Assessment in the absence of Documents

Except where the applicant is a salaried person, it is unlikely that Nivara would get any
income documents to evidence the income earned by the family. In case of salaried
customers, since a document in the form of salary slip is available, it is easy to know the
income of the applicant and thereby proceed to final decision on the loan. In other cases, the
decision would be driven by the information collected from the customer in the personal
discussions held with him/her and the family. The Personal Discussion process as explained
earlier is quite comprehensive and extensive enough to arrive at a decision.

e. Minimum filters
Analysis of basic lifestyle, along with an analysis of income, expenses, savings and other loan
obligations the overall assessment of borrower’s ability to repay would also involve a review
of his lifestyle. A quick analysis of minimum lifestyle indicators observed in the applicant’s
family would be amongst the first things done in reviewing any case. A certain minimum
criteria to measure the present lifestyle of the applicant, some basic filters on earnings based
on various profiles are applied and if the applicant does not meet the minimum criteria, the
loan process would not be pursued further.

f. Controlled Process
Information collector is always different from the underwriter in the Nivara process. The
underwriting process would be such that the individual interfacing with the customer and
collecting information, will not be eventually deciding on the case. The decision to approve
or decline the loan would be taken by an underwriter who would have limited interface with
the customer. The process is an effective control mechanism and segregates duties
appropriately.

g. Property Documentation
Nivara funds only to authorized properties in its area of operation. Property documents are
scrutinized by empanelled lawyers and title search conducted. Mortgage is created by deposit
of title deeds.

• Nivara Panel lawyer would scrutinize the property documents in all the cases and
confirm whether a mortgage can be created in favor of Nivara.

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 • Nivara Panel lawyer would design appropriate indemnities, loan agreement and other
supporting legal documents to be signed by the applicant. A franked promissory note
will also be obtained.
• The applicants would have some property documents, state that they are the owners of
the location. These documents should be deposited in original with Nivara.
• Memorandum of deposit of title deed is can be created by depositing the original
documents held by the family with Nivara and confirming that the documents are so
deposited with an intention to create the mortgage.

5.6 Collections Mechanism:

Collections are managed by Nivara’s own staff with a strong follow up thru SMSes,
telephone calls and personal meetings with the customers. Since the banking habits of the
customers are poor, the key is to ensure that the customers maintain sufficient balances in
their bank accounts prior to due date. As on date, the mode of repayment is either thru ECS or
NACH.

ü COLLECTION METHODOLOGY:
• The Customers are divided into 3 buckets and the pitch for collection follow-up
differs depending on the bucket that a customer belongs to:
o CLSS Customers: A strong awareness is imposed on these set of customers
that if there is any bounce or bad repayment history in the said home loan a/c,
there is danger of not getting the subsidy or losing the subsidy which is a
substantial amount (37% of the loan amount ie 2.2 lacs for a loan amount of
Rs. 6 lacs)
o Part-Disbursal Cases: Again, a strong awareness is imposed if there is PEMI
bounce, they may not get the next tranche of disbursement.
o Fully Disbursed Cases: This is where the close monitoring is required. We
divide this set of customers among the senior team members.

• Follow up Mechanism: A strong follow up thru SMSes (4 days prior to the due date in
Kannada & 2 days prior in English), telephone calls (3 days prior to the due date) and
personal meeting with the customers where there is a sense of doubt on the repayment
culture/behaviour and history of the borrower.

The collection methodology is strictly built around the respect and dignity of borrowers and
ensures that the team extends courtesy, fair treatment and persuasion to the customers all the
time. The collection policy of the company is prepared on the principles of fair practices
prevalent in the industry with regard to collection of dues and repossession of security with
an eye to instill borrower’s confidence.

© For Private Circulation Only 14

 6. MONTHLY DASHBOARD: OCTOBER 2016

MONTHLY DASHBOARD - OCTOBER 2016

FY FY 2017 Live to
Particulars 2016 Q1 Q2 YTD date Aug’16 Sep’16 Oct '16

No Of Sanctions 100 72 125 247 347 51 43 50

Sanction Value (lacs) 649 432 686 1381 2030 249 254 263
Avg Ticket Size (lacs) 6.5 6.0 5.5 5.6 5.8 4.9 5.9 5.3
Disbursements (lacs) 408 361 483 1034 1442 167 181 190


End of the period
Customers (#) 72 149 281 281 281 209 242 281
Gross Loan Portfolio (lacs) 396 757 1391* 1391* 1391* 1039 1201 1391*
Overdue cases (#) 0 0 0 0 0 0 0
*Net of CLSS subsidy of Rs. 39 lacs received from NHB & adjusted to customer accounts+cancellations
Head Count / Branches
Sales Officers (#) 9 13 19 13 13 13 19 22
Team Size (Incl SOs) (#) 21 31 50 44 44 44 50 62
# Branches 1 2 3 3 3 3 3 5

6.1 PORTFOLIO ANALYSIS – October 2016 (live to date) for 281 cases:

PORTFOLIO ANALYSIS –October 2016 (live to date) for 281 cases:

ü Loan Size:
o The ATS for the 281 cases disbursed so far stands at 5.9lacs (based on the
sanction value). For the month of October, the ATS was Rs. 5.3 lacs. The
ticket size was hammered since we have spread out to outskirts in Bangalore.
o The following table provides the ATS trends – monthwise since inception ie Oct-15:

Monthly trends of ATS (Sanctioned cases)

Sanc
Value
Month # Cases (lacs) ATS (lacs)
Oct-15 7 79.3 11.3
Nov-15 7 94.2 13.5
Dec-15 22 118.0 5.4
Jan-16 13 76.5 5.9
Feb-16 20 109.2 5.5
Mar-16 31 172.7 5.6
Apr-16 18 94.3 5.2
May-16 25 157.1 6.3

© For Private Circulation Only 15

 Jun-16 29 180.3 6.2
Jul-16 31 183.5 5.9
Aug-16 51 248.5 4.9
Sep-16 43 254.1 5.9
Oct-16 50 265.0 5.3
Live to
Date 347 2032.7 5.9

o 95% of Sanctioned Value falls below 10 lacs category.

o In terms of Sanction Value, we should be settling around 1/3rd each in
bucket ie below 5 lacs, 5 to 7.5 and 7.5 to 10 lacs.

Portfolio of 281 disbursed Cases as on 31/10/16 Sanctioned Cases - Oct-16

Loan Size # Cases Amount % of Total # Cases Amount % of Total

<= 5 lacs 134 560.7 34% 30 121.3 46%
5.01 to 7.5 lacs 89 540.3 33% 12 70.8 27%
7.51 to 10 lacs 53 472.0 28% 8 73.0 28%
10.1 to 21 lacs 5 84.3 5% 0 0.0 0%
Total 281 1657.3 100% 50 265.0 100%

ü Bureau Scores:
o 47% of cases (132/281) have either Cibil or High Mark Scores.
Portfolio of 281 disbursed Cases as on 31/10/16
%age of cases
Sanct Amt with Bureau
Loan Size # Cases (lacs) Scores (Nos)
<= 5 lacs 134 560.66 37%
5.01 to 7.5 lacs 89 540.32 52%
7.51 to 10 lacs 53 472 62%
10.1 to 21 lacs 5 84.3 80%
Total 281 1657.3 47%

ü Salaried Vs SENP: As of now, we have 46% (129/281) of the cases from the
salaried categories. I expect the same trend to continue going forward. We have
not found much of difference in the ticket size between the Salaried and Self-
employed segments as the same is hovering around 5.6 lacs to 5.8 lacs. This is
after excluding 5 high values cases that we have done in the month of Oct-15. (5
cases amounting to 84 lacs)

© For Private Circulation Only 16

 % of Total
Sal Vs SENP # Cases Amount ATS Value #
Salaried 129 716.8 5.6 43% 46%
SENP 152 940.4 6.2 57% 54%
Total 281 1657.3 5.9 100% 100%

ü Purpose:

o 75% of customers (Value) availed home loans for self-construction

purpose. The remaining is spread out between composite (land+
construction), New purchase & for Re-finance (completed construction in
the last 3 to 6 months).
o Overall LTV at portfolio level remains very low at 22% while it goes
upto 45% for composite loans (plot purchase + Construction).

Sanctioned ATS
Loan Purpose # Cases Amt (lacs) % of Total (lacs) LTV (%)
Self-
Construction 215 1239.6 75% 5.8 21%
Refinance 25 138.8 8% 5.6 22%
Composite 25 183.5 11% 7.3 45%
New Purchase 16 95.4 6% 6.0 31%
Total 281 1657.3 100% 5.9 22%

ü MHI (Monthly Household Income):

o 64% of cases (181/281) have more than one income earning member in the
family.
o Average MHI works out to 33,517. At this stage, 74% of customers (Nos) fall in
between 20k to 50k per month bracket.

Sanc Amt % of Total

MHI # Cases (Rs lacs) Avg MHI Sanc Val #
<= 20k 41 153.1 16,570 9% 15%
20k to 30k 105 543.1 24,496 33% 37%
30k to 50k 103 671.9 39,369 41% 37%
>50k 32 289.1 72,436 17% 11%
Total 281 1657.3 33,517 100% 100%

© For Private Circulation Only 17

AN UPDATE ON PMAY –CLSS: PRIME MINISTER AWAS YOJANA (PMAY) – CREDIT
LINKED SUBSIDY (CLSS) - HOUSING FOR ALL

We have designed a special product in the name of “Nivara Nivas” to cater to the Central
government initiated program under Housing for All. So far we have Sanctioned 62 cases under
the said scheme.
We have already received subsidy about 4 claims so far till Oct-16. We have taken a conscious
decision on this product to make our subsidy claims only on completed properties (though the
scheme allows us to claim on part disbursals as well). This is to ensure the compliance on few
parameters.
• One out of every 4 cases (76/281) that we have disbursed is under CLSS
scheme!
• However, CLSS portfolio constitutes 18% of overall portfolio and ATS is about
5 lacs for CLSS cases.

The detailed update on CLSS portfolio is provided in the following table:

CLSS Portfolio – Nivara Nivas

FY 2016 Q1 Q2 Sep'16 Oct '16 Total
# 18 23 36 15 6 83
Sanctions Amt (Lacs) 89.4 113.2 178.1 77.0 28.8 409.4
ATS (Lacs) 5.0 4.9 4.9 5.1 4.8 4.9


Disbursement (Lacs)
52.2
93.3
111.6
38.9
38.1 295.3

Claimed
12.3
13.2
13.6
0.0
0.0 39.1
Subsidy
Received 12.3 13.2 13.6 13.6 0.0 39.1
Amt (Lacs)
Adjusted 12.3 0 13.2 0 0 39.1

# Customers 12
40
67
67
76 76
CLSS Portfolio O/S (lacs) 39.9 120.0 217.9 217.9 255.7 255.7
Portfolio % of tot Portofolio (Nos) 17% 27% 28% 28% 27% 27%
% of tot Portfolio (Value) 10% 16% 18% 18% 18% 18%

6.2 SVS UNO - Core End to End lending System

All loans right from inception have been booked through UNO – our end to end Core lending
system. Customizations are made from time to time so as to suit our requirements. The Main
customizations include Income eligibility calculations, MIS automation, Auto e-mailers and
auto SMS to customers etc.

General account entries, Sanctions, disbursements and post disbursement entries such as
Cheque banking status, ECS /ACH mandate status, cheque realization/ bounce status,
© For Private Circulation Only 18
 collection updates, reconciliation happens on real time basis, as there is scheduled day end
activity which takes place at the end of the day.

UNO has been developed by Shriram Value Services (SVS)– Chennai based firm and part of
Shriram Group. SVS UNO is an integrated multi-portfolio Retail loan management solution
which includes loan application processing, servicing and collection management integrated
with online accounting entries.

The Solution has the below modules

Ø Loan Origination – De-dupe, Proposals, Disbursals
Ø Loan Maintenance – Collections, Loan Management, Legal
Ø Settlements
Ø System administration
Ø MIS reports
Ø General Accounting
Ø Mobility Solutions – EMI receipting
Ø Document management system

7. Financial Highlights
FY 2015-16 FY 2014-15
Item Audited Audited
PROFITABILITY (Rupees Lacs)
Operating Income 26.8 0.0
Total Income 99.4 15.1
Financial Expenses 0.0 0.0
Employee Benefit Expenses 55.1 0.0
Admn & Other Opex 34.4 2.4
Prov, Dep & Amort Exp 4.2 0.0
PBT 5.7 10.7
PAT 1.2 7.2

BALANCE SHEET
Net Worth 1083.6 1007.2
Borrowings 0.0 0.0
Loan Portfolio 395.4 0.0
Cash & Bank Balance 257.6 1008.2

© For Private Circulation Only 19

 BUSINESS PLAN – FY 17 TO FY 19

Financial Snap Shot

Actuals Business Projections
Particulars (Crs) FY 14-15 FY 15-16 FY 16 - 17 FY 17 - 18 FY 18 - 19
Fresh Disbursement 0 4.1 30 91 157
POS -Loan book 0 4.0 31 109 236

Net worth 10 10.8 25 52 83
Debt 0 0 8 64 165
Debt Equity Ratio 0 0 0.3 1.2 2.0

Total Income 0.15 0.99 3.3 14.3 32.2
PBT 0.04 0.11 0.08 2.05 5.99

Profit and Loss (Rs Crores) FY 16 - 17 FY 17 - 18 FY 18 – 19

Income
Interest Income 2.1 11.2 27.0
Income from Loan Book 2.1 11.2 27.0
Income from Securitized Portfolio 0.0 0.0 0.0
Non Interest Income 1.3 3.1 5.2
Income from securitized Portfolio 0.0 0.0 0.0
Processing Fees 0.7 2.1 3.7
Insurance Income 0.3 0.9 1.6
Other Income _ Application fee 0.28 0.0 0.0
Total Income 3.33 14.3 32.2
Expenses
Interest Expense 0.5 4.7 14.3
Net Interest Income 1.5 6.5 12.6
Salary Expense 1.7 4.4 6.0
Operating Expense 0.6 1.6 2.3
Depreciation 0.2 0.33 0.42
Provision for NPAs 0.1 0.43 0.85
Total Expenses 3.2 11.5 24.0
Profit Before Tax 0.1 2.8 8.2
Tax 0.0 0.8 2.2
Profit After Tax 0.08 2.0 6.0

Transfer to Special Reserve 0.0 0.6 1.6
Special Reserve (Cumulative) 0.0 0.6 2.2
Profit available for appropriation 0.06 1.5 5.9

© For Private Circulation Only 20

 Balance Sheet as on 31st Mar (Crs) FY 16 – 17 FY 17 - 18 FY 18 – 19
Sources of Funds
Total Equity 25.00 35.00 41.25
Equity 25.00 35.00 41.25
Share Premium Reserve 0.00 15.00 33.75
Special Reserve 0.0 0.6 2.2
From P & L 0.1 1.5 5.9
Reserves and Surplus 0.1 17.1 41.9
Total Net worth 25.1 52.1 83.1
Book Value 10.0 14.9 20.1
Loan Funds
Borrowed Funds 7.8 64.3 165.3

Total 32.9 116.4 248.4

Application of Funds
Fixed Assets
Gross Block 2.0 3.6 4.5
Less Depreciation 0.22 0.55 0.97
Net Block 1.8 3.1 3.5
Loans & Advances 27.0 106.3 233.9

Net Current Assets, Prov & Others 4 7 11
Current Assets 0.3 1.1 2.3
Less: Current Liabilities 0.3 1.2 2.6
Less: Provisions 0.1 0.6 1.4
Cash & Other Balances 4.2 7.7 12.6

Total 32.9 116.4 248.4

KEY ASSUMPTIONS
Number of Branches 6 12 15
Avg Disb per branch pm (Crs) 0.4 0.6 0.9
ATS (lacs) 5.8 6.3 7.0
Cost of Borrowing 14.0% 13.0% 12.5%
Weighted Avg Cost of Funds 4% 8% 10%
WAROI 18% 17% 16%
Processing Fee 2.25% 2.25% 2.25%
No of Ros / Location 6 6 6
Equity Infusion (Rs. Crs.) 25.0 10.0 6.3
Prem to the Issuance (Rs. Crs.) 0.0 15.0 18.8
Total Infusion (Rs. Crs.) 25.0 25.0 25.0

© For Private Circulation Only 21

 ANNEXURE1 : BRANCH EXPANSION PLAN - FY 2016-17
Month
of
State City S No Branch Direction Opening Status
1 JP Nagar South Bengaluru Oct-15 Functional
2 Nagarbhavi West Bengaluru May-16 Functional
Karnataka Bangalore
3 Baguluru Rd North Bengaluru Aug-16 Functional
4 TC Palya Rd East Bengaluru Oct-16 Functional

Oct-16
1 Pimpri branch is
Maharashtra Pune Pimpri-Chinchwad North-West
functional
2 Kharadi* East Q4

1 Alwal/Kompally North of Hyd

2 Chilkuru West Q4 to Q1 Team
Telangana Hyderabad* 3 Chandanagar/BHEL North West of next identification in
FY progress
LB Nagar /
4 Vanasthalipuram South East

1 Tambaram South-West Chennai

Avadi /
2 Thiruvalluvar North-West Chennai Q4 to Q1 Team
Tamil Nadu Chennai* Poonamalee /Sri of next identification in
3 perumbadur West Chennai FY progress
Royapuram/
4 Thirvottriur North-East Chennai
*for Chennai, Hyderabad and Pune –the locations are tentative and will be finalised after necessary
due diligence.

© For Private Circulation Only 22

 ANNEXURE 2 : BRIEF PROFILE OF SANCTIONED CUSTOMERS - Oct 2016
S No Customer Loan CIBIL / # IEM MHI Customer Profile COP
Plot LTV (%)
Amount CHM (pm) (lacs) Area
Score (sqft)
1 Lakshmi R 3.75 -1 3 17816 Tailor and Painter 23.39 1206 16%
2 Tractor Driver and
Kaveramma 3.00 765 3 19767 Salaried 6.90 360 44%
3 Ganganarasimha Salaried - Welding
Murthy 3.75 -1 1 15400 Factory 12.45 650 30%
4 Salaried -
Marketing
Sundramma 6.00 -1 2 21691 Manager 15.00 1200 40%
5 Fruit business and
Bhagyamma 5.00 765 2 25000 Tailor 27.00 1900 19%
6 Home Tution
Srilakshmi A 5.00 -1 1 30000 Teacher 18.24 1268 27%
7 Venkatesh R 4.00 482 1 18529 Auto Driver 12.00 540 33%
8 Sujatha T T 4.00 -1 1 18829 Own TT Travels 15.00 600 27%
9 Kumar N M 4.50 -1 2 24879 Auto Driver 17.00 1200 26%
10 Ramesh 3.00 714 1 21320 Purchase executive 30.16 705 13%
11 Sr. Mechanic
Kanikaraj 10.00 577 2 36800 (Supervisor)/Tailor 26.27 542.5 38%
12 Provision
Store/Own Auto
Pushpa 5.25 704 2 29903 Driver 14.40 288 36%
13 House
Executive/Field
Shanthamma 6.00 -1 2 33383 Engineer 15.00 600 40%
14 Car Diver/Delivery
NarayanaSwamy 8.00 715 2 24150 Boy 36.36 600 22%
15 Babu shetty 3.25 728 1 40616 Condiments 39.67 1200 8%
16 C- Grade Tailor/A-
Grade Tailor/Shirt
piece cutting
Shivanna 6.00 -1 4 44505 job/DSE 13.21 544 45%
17 Tractor
Business/Rental
Chandrappa 6.00 737 1 36417 income 24.95 600 24%
18 Own passenger
Auto/Asst.
Francis 3.25 -1 2 24932 Manager 17.60 400 18%
19 Bhagya 6.00 -1 1 23750 Power loom 14.4 600 42%
20 Bablu kumar 10.00 814 1 42075 Interior Contractor 74.24 1280 13%
21 Own Kebab
Shop/Dish
Washer(House
Nagaraj 5.00 702 2 20525 Keeping) 13.50 640 37%
22 JCB Driver/Rental
Indramma 3.00 -1 1 17500 Income 17.34 880 17%
23 Supervisor/Car
Nagarathna 5.00 -1 3 33000 Driver/Auto Driver 26.71 1200 19%
24 M/s Prateek
Apparels Pvt
Srinivas 3.50 -1 1 13907 Ltd(Sample cutter) 24.75 495 14%
25 Saritha Soundar 5.00 765 2 32300 Chicken 11.65 398 43%
© For Private Circulation Only 23
 Shop/Carpenter –
wood works
26 Power Looms
Tilak Kumar 2.50 764 1 16200 Labour Worker 15.4 600 16%
27 Geetha R 5.00 765 2 21936 Tailor/Supervisor 10.29 612 49%
28 Raju 10.00 -1 1 20783 Painting Contractor 11.3 900 44%
29 Jagadish 10.00 598 1 36709 Head Cashier 16.18 280 62%
30 Meter
Prathima 6.00 -1 1 27423 reader(BESCOM) 17.1 600 35%
31 System
Admin/Tuition
Harish Kumar 5.00 583 2 24650 @Home 19.35 1200 26%
32 BMTC
drivers/Rental
Reddaiah 10.00 2 2 43667 Income 63.5 8167 16%
33 Power loom/Sr
Technician /Power
Shashi Rekha 6.00 727 4 44431 loom 13.8 600 43%
34 Garbage
Manjunath 5.25 -1 2 25855 vehicles/Driver 28.81 677 18%
35 Material
Supply/Milk
Business/Cash
Salary(MNR
Ananda 8.00 650 2 29500 Arcade) 24.20 1200 33%
36 House Keeping
/Driver –
Zareena 5.00 726 3 26760 Auto/Security 11.48 720 44%
37 Technician/Rental
Nanjappa 5.00 736 1 36137 Income 24.75 1250 20%
38 Stephen Poulose 3.50 300 2 26280 Salaried-Airtel 12.40 456 28%
39 Hema Raju 3.50 687 4 28500 House keeping 11.90 600 29%
40 Muniraju Suvarna 4.00 -1 2 17100 Driver/ House Wife 15.79 510 25%
41 Security Guard/Call
Arun Babu 5.00 674 4 37540 Centre 15.57 600 32%
42 Handloom/Barber
D Ramachandra 6.00 747 3 30500 shop 26.49 1200 23%
43 Anand/Madhushr Fabrication
ee 4.00 -1 2 20253 Business 16.01 445 28%
44 Shivappa 5.00 -1 2 20253 BMTC conductor 16.01 445 28%
45 Prabhudev 6.00 742 3 34750 Supplier 33.10 1188 27%
46 Vargeesh 3.50 730 1 21060 Supplier 37.94 1634 36%
47 Srinivas/Varamah
alakshmi 7.00 626 2 20426 Rose Plantation 14.62 360 32%
48 Sujatha/Govindap Sound System
pa 3.00 667 1 40479 Supply + Garments 15.00 1200 23%
49 K.Athaulla 3.25 728 1 22898 Car driver(own) 41.15 600 23%
50 Cash Salaried
Balasaheb Tupe 6.25 -1 1 21000 Recovery Officer 13.62 1000 46%

© For Private Circulation Only 24

 ANNEXURE 2 : BRIEF PROFILE OF SANCTIONED CUSTOMERS - Sep 2016
S No Customer Loan CIBIL # MHI (pm) Customer COP Plot LTV (%)
Amount / IE Profile (lacs) Area
CHM M (sqft)
Score
1 Allpomsa D V 6 2 2 28,290 Tailor 23.30 600 25.75%
2 Yellamma 5 737 4 23,788 Salaried 24.00 750 20.83%
3 Beerappa 10 642 1 72,000 Contractor 54.60 2200 18.32%
4 Pushpavathamma/Ma
Factory+Tailoring
njunath 5 -1 2 25,461 21.80 437 22.94%
5 Tata Ace own
Manjula/Nagaraju B
6 -1 2 23,735 driver 18.00 550 33.33%
6 KHASIMSAB 5 -1 1 24,380 Labour contractor 15.60 600 32.05%
7 Vijaya/murgesh 6 696 3 45,500 mation work 51.00 1800 11.76%
8 Venkatesh Rao 6.5 540 2 36,853 auto driver 20.51 1100 31.69%
9 Anup HN 5 742 3 66,145 Salaried 28.00 240 17.86%
10 Savitha/Arunkumar 5 -1 1 23,000 Bldg contractor 19.50 600 25.64%
11 Carpenter/Cooper
Kanya Kumari S Weilding
6.3 702 2 29,173 business 18.60 600 33.87%
12 Artist+Auto
Manjunath M D
5 -1 2 38,045 Driver+garments 20.50 500 24.39%
13 Salaried+Garment
Srinivas/Sunanda
5 -1 2 27,495 s 24.18 600 20.68%
14 Salaried + Fruits
K V Jayaramaiah and Flower
6 741 2 28,776 Business 29.24 900 20.52%
15 Laxman Bari K 6 682 1 28,360 Salaried 21.40 1150 50.97%
16 BMTC
Driver+Car
Gayathri/Srinivas
Driver+Sales
4.5 -1 3 20,944 Executive 15.50 480 29.03%
17 Zakiya Banu 3.3 -1 2 15,120 Driver + Tailor 13.66 525 24.16%
18 Jayamma/Venkataram
Salaried
ana 6 -1 3 22,437 14.70 798 40.82%
19 Abhishek L 5 725 3 43,730 Car Driver 25.95 980 19.27%
20 Ramesh R 4.5 562 2 19,525 Auto driver 30.16 705 13.26%
21 Carpenter + Cash
Mohan K Salaried +
6 2 3 31,094 Cheque Salaried 28.35 800 21.16%
22 Siddaraju 6 722 1 38,168 Pani Poori Maker 19.39 612.5 30.94%
23 Teacher +
Bescom
Poornima 5 727 2 36,111 Employee 6.25 576 80.00 %
24 Devika 10 727 3 55,811 Tailor 21.00 600 47.62 %
25 Ganesh A 3.5 726 3 23,326 Auto driver 10.00 350 35.00 %
26 Manjunath/gowramma 8 732 2 34,913 Intirior contractor 16.65 700 48.05 %
27 Venkatesh/chithra 8 726 3 39,651 operator 61.80 1200 12.94 %
28 Provision
Krishnappa/rukmini store/Cement
10 641 2 1,32,626 Dealer 72.68 4875 13.76%
29 Sudha M T/Suresh K 5 -1 2 20,787 Tailor + Flowrist 14.10 1200 35.46%
30 Manjunath/Kavelamm
OWN AUTO
a 7.5 -1 3 43,543 24.00 1200 31.25%
31 Shiva Kumar 3 727 3 22,584 Driver 15.00 600 20.00%
32 Kamalamma/Hanuma 10 727 3 87,731 Salaried 67.52 600 14.81%

© For Private Circulation Only 25

 nthappa
33 Auto Driver +
Suresh/Chandramma 3.5 770 2 14,802 Tailoring 21.85 270 16.02%
34 Chandra Bai/K. PRINTING +
Vasanth kumar 4.2 -1 3 27,000 MECHANICAL 13.38 540 31.39%
35 Lakshmamma/Laksma
Fitter + Garments
n 6 735 4 48,263 18.00 624 33.33%
36 Adinarayana S N 8 -1 1 37,400 Auditor 41.00 1200 19.51%
37 Clothes Iron +
Papanna 4.25 721 2 37,300 Civil Contractor 5.56 505 76.48%
38 Mahadeva/Gowramm Centring
a 7 -1 1 48,727 Contractor 12.00 1200 25.32%
39 Nadhiya/Ravi 6 -1 2 22,193 Salaried 12.00 600 61.54%
40 Salaried + Power
Kanchana/Manjunatha 6 706 2 23,820 Loon 12.00 600 48.27%
41 Madesh/Shankar 6 -1 2 28,655 Provision Store 30.00 600 10.82%
42 Kaverappa/Yallamma 6 715 4 43,543 Salaried 12.00 850 30.38%
43 Ape Auto Driver
Rangaswamaiah 4 -1 2 16,618 + Salaried 14.70 1200 27.21%

ANNEXURE 2 : BRIEF PROFILE OF SANCTIONED CUSTOMERS - Aug 2016

S Customer Loan CIBIL # MHI Customer Profile COP Plot LTV
No Amount / CHM IEM (pm) (lacs) Area (%)
Score (sqft)
1 Flower shop+ Gandige
Siddagangaiah 10.00 748 1 18314 Shop 25.90 795 39%
2 Salaried + Electrical
Naveen Kumar 10.00 729 2 50458 contractor 38.83 1092 26%
3 Salaried (Cash) + Cab
Sarojini 8.00 2 2 33207 Services 13.20 1200 61%
4 Plumbing & Electric
Velu M 8.00 -1 1 36250 Contractor 23.05 960 35%
5 Meenakshi 7.50 -1 2 23444 Salaried 26.98 506 28%
6 Timer Internet
Limited/Accenture/Auto
Arun Kumar 7.25 690 3 42077 Driver 10.77 520 67%
7 Anand 7.00 655 5 41174 Salaried + Driver (Auto) 57.50 1200 12%
8 Plumbing & Electric
Channaraju 6.00 721 2 34286 Contractor 38.25 875 16%
9 Girija 6.00 765 1 34200 Power loom business 10.80 600 56%
10 Contractor - Wood/Interior
Sathish T M 6.00 -1 2 56714 Works 34.03 1200 18%
11 Gangadhara
Salaried
Murthy 5.50 693 1 21577 20.3 1800 27%
12 Salaried (Govt Employee) +
Roopa/Manjunath 5.25 -1 2 34235 Electrical Contractor 36.70 912 14%
13 Bharum Bash 5.25 -1 2 41547 Salaried 17.95 540 29%
14 Rudresha 5.00 -1 1 29443 Civil Contractor 19.31 776 26%
15 BMTC Conductor/TT Driver
Shyamanayak 5.00 730 2 44558 in Manjushree 18.48 1200 27%
© For Private Circulation Only 26
 16 Javeriya 5.00 706 2 41300 Salaried (BUMS Doctor) 11.45 521 44%
17 Gopalamma 5.00 -1 3 35630 Salaried 67.88 1250 7%
18 Hanumakka 5.00 765 2 24000 Salaried 12.96 600 39%
19 Ashwathappa 5.00 749 2 26682 Salaried 19.00 1200 26%
20 Laxmibai 5.00 736 2 26519 Hotel + Fabrication 16.40 640 30%
21 Hemanth Kumar 5.00 764 1 85409 JCB Owner 14.8 600 34%
22 Lakshmi U 5.00 706 2 20957 Salaried 21.46 1200 23%
23 Manjunatha 5.00 -1 2 23456 Tata Ace + Salaried 13.44 622.5 37%
24 Raju R 5.00 -1 3 29659 Salaried 21.62 605 23%
25 Lakshmamma 5.00 -1 2 43872 Salaried 17.50 714 29%
26 Kamala K N 4.50 -1 2 21440 Salaried + Tailor 22.19 1089 20%
27 Nanjamma 4.50 -1 3 20899 Gardener/Supplier 9.22 525 49%
28 Manjula/Venkatesh 4.50 -1 2 19034 Salaried 15.92 675 28%
29 Pushpa 4.25 -1 1 12900 Provisional store Owner 9.53 528 45%
30 Apollo Pharmacy/Agnostic
Kamala 4.00 -1 2 12859 Management 11.68 600 34%
31 Gowramma 4.00 735 3 24000 Salaried 51.10 1200 8%
32 Provisional store+ Milk
Saraswathi 4.00 -1 1 23477 Supplies 9.56 456 42%
33 Cash Salaried + Driver (self-
owned Car) + Tuition
Hemavathi 4.00 765 2 20363 Income 9.56 456 42%
34 Ravi/Manjula 4.00 -1 2 21500 Salaried + Driver (Auto) 10.00 600 40%
35 Sagaya Mary/
Ignishias 4.00 -1 2 19962 Attender/Tailor 45.41 2451 9%
36 Driver (Salaried - School
Shivaji Rao 4.00 541 3 57050 Bus) 22.25 600 18%
37 Power loom business
Manthegowda 4.00 3 1 19700 (Thread) 9.34 234 54%
38 Sarvana 4.00 -1 2 18793 Tailor + Salaried 11.71 456 34%
39 Mary Hilda 4.00 -1 2 16500 Salaried + Driver 18.18 720 22%
40 Narayan Gowda 3.75 -1 2 15872 Salaried 14.00 3267 27%
41 CAB Driver(own
Yogegowda 3.50 705 2 19804 car)/Housekeeping job 14.16 592 25%
42 Ramaswamy 3.50 -1 2 18600 Salaried + Daily wager 10.77 600 32%
43 Harish 3.50 -1 2 22000 Carpenter 26.00 1200 13%
44 Devappa 3.50 -1 1 15000 Civil Contractor 16.83 783 21%
45 Income Tax Dept/SLN
Anjinappa 3.25 707 2 53149 Enterprise/Rental Income 13.95 600 23%
46 Puttamary gowda 3.25 -1 1 13000 Carpenter 39.70 860 8%
47 Sulochana 3.25 -1 2 45626 Salaried + Auto Driver 18.61 307.5 27%
48 Muniraju 3.00 -1 2 13000 Salaried + Carpenter 13.54 630 22%
49 Own tractor/Quarry
Manjunath 3.00 579 3 30100 Labourer/Car Driver 15.76 1200 19%
50 Saroja 3.00 691 1 21213 Interior Contractor 10.72 600 28%

© For Private Circulation Only 27

 Sr sourcing
Executive/Evaluator
51 Vignesh 2.50 762 2 25784 /Executive 30.00 600 8%

ANNEXURE 2 : BRIEF PROFILE OF SANCTIONED CUSTOMERS - JULY 2016

CIBIL Plot
S Loan / CHM # MHI COP Area LTV
No Customer Amount Score IEM (pm) Customer Profile (lacs) (sqft) (%)
1 Muthu 10.0 750 1 37,074 Fruit Vendor 15.44 1492 65%
Fabricator+Water
2 Shylaja 10.0 -1 4 35,600 Business+Tailor+salaried 70.75 2128 14%
3 Mangala Gowri 10.0 745 2 60,958 Retail Mobile Shop 38.87 1350 26%
4 Jabeen 10.0 -1 1 52,260 Mfr of Seive/Filters 92.70 1030 11%
5 Manjunath 8.0 710 2 30,660 Salaried + Rental Inc 94.17 1500 8%
6 Jagadish 7.5 711 3 41,196 Tata Ace Driver+Salaried 13.40 840 56%
7 Bhagyalakshmi 7.0 -1 2 27,356 Govt Employee 9.74 585 72%
8 Ravi D 7.0 735 2 23,862 Vegetable Vendor+ Salaried 33.70 1200 21%
9 Shantharange 7.0 -1 2 47,249 Salaried + Retail stores 83.28 2000 8%
10 Suchitra 6.0 727 1 38,135 Auto Driver (company) 34.57 1201 17%
11 Kumar P 6.0 818 2 28,965 Salaried + Vehicle on hire 12.72 600 47%
12 Mashuda 6.0 -1 1 22,951 Watch Repair Shop 10.80 600 56%
13 Kumar N R 5.5 -1 1 22,125 Electrical Contractor 12.15 600 45%
14 Anusuya 5.5 -1 1 23,910 Salaried 17.50 300 31%
15 Hemavathi 5.5 -1 1 31,233 Civil/Centering Works 12.63 660 44%
16 Indrani 5.5 791 1 32,952 Salaried 12.75 600 43%
17 Mariyamma 5.5 760 4 34,402 Salaried+Driver+ Contractor 12.30 696 45%
18 Prakash 5.5 -1 2 41,871 Timber Business 46.36 1452 12%
19 Narasegowda 5.3 765 2 31,708 Auto Driver (own) 35.45 1200 15%
20 Yashodha 5.0 678 2 11,912 Salaried 16.16 600 31%
21 Anjinappa 5.0 707 3 53,149 Salaried + Rental Inc 16.16 600 31%
22 Manjunath 5.0 -1 3 25,048 Housekeeping 27.10 2178 18%
23 Satish 5.0 -1 1 31,471 Salaried 18.72 480 27%
24 Puttaswamy 4.5 -1 3 20,700 Salaried 17.24 962.5 26%
25 Yarukan 4.5 722 3 26,380 Salaried + Contractor 6.00 600 75%
26 Lavanya 4.0 -1 1 20,000 Power looms Business 7.96 402 50%
27 Sandil 4.0 -1 2 20,404 Salaried + Vegitable shop 11.73 600 34%
28 Kavitha 3.5 765 3 18,000 Carpentor + Salaried 11.91 600 29%
29 Mahadeva N 3.5 -1 2 16,163 Labour in Power looms 21.26 1100 16%
30 Lakshmi 3.5 626 3 20,749 Ambulance Driver 10.86 750 32%
31 Radha 3.3 -1 2 14,000 Salaried + House Maid 15.59 312 21%

© For Private Circulation Only 28

 ANNEXURE 2 : BRIEF PROFILE OF 29 SANCTIONED CASES – June 2016
CIBIL
/ Plot
Loan CHM # MHI Profile of COP
Area LTV
S No Customer Amount Score IEM (pm) Applicants (lacs) (sqft) (%)
Mahalakshmi/ Cheque salaried +
1 Vankataiah 6.00 -1 2 22101 Pension 24.00 1500 25%
2 Parvathi/ Sangappa 3.25 -1 2 21576 Salaried 04.57 425 71%
Tata Ace + Tailor +
3 Muniraju 6.00 -1 3 44697 Cash salary 23.81 1170 25%
4 Hemavathi 6.00 745 2 23704 Salaried + driver 29.96 600 20%
Salaried + civil
5 Yashodha/Kannappa 4.25 -1 3 24500 worker 18.07 510 24%
Salaried + Civil
6 Poorna Singh 7.50 -1 2 38000 works 47.00 1200 16%
Salaried + Tata
7 Anitha/Ramesh 6.00 -1 3 23100 Ace Driver 23.12 1200 26%
Temple artist +
8 Shankar 4.50 722 2 35010 salaried 13.58 406 33%
Salaried +
9 Tejashwini 6.00 -1 2 22741 Housekeeping 30.52 1320 20%
Civil & Cantering
10 Andrew 9.00 727 1 69259 business 26.20 600 34%
Vegetable Vendor
11 Nagarathna 6.00 -1 2 41230 + Salaried 15.90 1200 38%
12 Radha 4.00 -1 2 15950 Salaried 18.20 600 22%

13 Bharath 9.50 683 4 55887 Salaried 19.60 1200 49%
14 Shobha/Ravi 5.00 -1 2 23000 Salaried 16.10 900 31%
15 Basavaraju 4.75 -1 2 19050 Sal + Civil Worker 22.72 1340 21%
Sal + Patanjali
16 Santhosh Tiwari 8.00 705 2 31963 Stores owner 44.40 1196 18%
17 Dilip Kumar 10.00 711 2 71386 Salaried 18.78 930 53%
Beauty Parlour +
18 Jyothi/Venkatesh 5.00 -1 2 24635 Saloon 13.40 600 45%
19 Lokajyothi 10.00 -1 1 49473 Civil Contractor 58.00 600 17%
20 Puttamma 4.50 -1 4 21000 Chq Sal + Plumber 12.80 600 35%
Sal+ Milk Supplies
21 Sarojamma 6.00 -1 3 28062 + Tata Ace 38.40 1200 16%
Salaried + Beauty
22 Nagesh 6.00 727 3 61927 parlour + Car 21.31 1300 28%
Condiment
23 Shantha 6.00 -1 1 25229 Business 27.75 600 22%
Tailor + Auto
24 Shivamma 5.08 -1 3 41633 Driver + Salaried 18.35 1200 28%
Auto Driver +
25 Divya Jyothi 4.50 -1 2 22805 Tailor 14.06 600 32%
26 Bhagyamma 4.50 -1 2 20000 Tailor + Salaried 19.80 900 23%
Self owned Goods
27 Govindaraju 6.00 -1 2 28600 vehicle Drivers 48.40 1200 12%
Cycle Shop +
28 Nagaraju 8.00 803 1 93150 Rental Inc 25.72 364 31%
Appliances Shop
29 Thirumurthy 8.00 767 1 21250 owner 25.72 364 31%

© For Private Circulation Only 29

 ANNEXURE 2: BRIEF PROFILE OF 25 SANCTIONED CASES -MAY 2016
CIBIL
/ Plot
S Loan CHM # MHI COP
Area LTV
No Customer Amount Score IEM (pm) Profile of Applicants (lacs) (sqft) (%)
Land Scape
1 Yogesh 10.00 754 1 42,122 Contractor 71.7 2880 14%
2 Mukunda Rao 10.00 683 1 36,487 Mfr of PP Granuels 44.6 585 22%
3 Raju R Gowda 9.00 757 1 29,468 Salaried (Cheque) 19.8 1200 45%
Self Owned
4 Manjunatha 9.00 730 2 34,810 Saloon+milk business 23.1 640 39%
5 Jaynth B J 8.00 0 2 59,942 PG Accomm Services 23.7 792 34%
6 Radhamma 7.50 765 2 31,925 Salaried (Cash) 96.9 2400 8%
Driver - School
7 Ravi K 7.25 438 2 46,195 Van+Sal 67.2 2593 11%
8 Venkatanna 7.00 616 1 29,957 Transport Business 23.7 780 30%
9 Sunitha 7.00 0 1 23,250 Ladies Tailor 29.4 1200 24%
10 R Ramesh 6.50 0 2 29,736 Ladies Tailor+Sal 15.3 600 43%
11 Mubeen Taj 6.00 0 2 48,366 Driver+Salaried 10.4 600 58%
12 Nasira Banu 6.00 0 2 31,060 Tailor+Salaried 11.4 600 53%
Paani-Puri Vendor +
13 Vanajakshi 6.00 0 2 31,125 Electrician 14.1 600 43%
14 Lakshmi 6.00 17 2 28,500 2wheeler Garrage 15.7 600 38%
15 Naveen Kumar 5.60 0 1 25,200 Salaried (Cheque) 12.8 900 44%
16 Lakshmamma 5.00 0 1 25,313 Hotel and Prov Stores 8.6 450 58%
17 Subhadra 5.00 720 1 21,244 Medical Shop 8.4 462 60%
18 Nagaraju B A 5.00 766 2 23,800 Driver+Tailor 19.5 600 26%
19 Venkatanna 5.00 0 2 30,774 Contractor+Salaried 11.8 750 43%
20 Padma vasanthi 5.00 -1 2 26,500 Salaried + Pujari 25.6 1320 20%
Onion & Potato
21 Sharadhamma 5.00 702 2 31,275 Vendor 32.7 1200 15%
22 Deepa K S 5.00 0 2 23,000 Salaried 14.0 600 36%
23 Mahadev 4.25 0 1 25,425 Hotel Business 16.0 600 27%
24 Lingaraju 4.00 0 4 63,280 Salaried 10.4 600 39%
25 Annakili 3.00 0 2 14,800 House maid+Labourer 12.9 720 23%

© For Private Circulation Only 30

 ANNEXURE 2: BRIEF PROFILE OF 18 SANCTIONED CASES -APRIL 2016
CIBIL
/ Plot
S Snctd CHM # MHI Profile of COP
Area LTV
No Customer Amount Score IEM* (pm) Applicants (lacs) (sqft) (%)
1 Vijayamma 3.0 NA 2 17,497 Salaried 8.39 NA 36%
House maid/Civil
2 Nirmala K 3.0 760 2 30,567 Labour Contractor 11.76 600 26%
Electrical
3 Ayesha Banu 3.0 NA 1 15,000 Contractor 13.95 600 22%
4 Kumar B 3.0 NA 2 23,342 Salaried 19.20 1056 16%
5 Bharathi N 3.5 NA 1 20,800 Tailor 8.39 NA 42%
6 Bhaskar P 4.0 781 1 24,420 Salaried 19.85 600 20%
7 Sudhar A R 5.0 NA 2 23,010 Tailor 7.40 NA 68%
8 N Pandiselvi 5.0 NA 2 20,363 Salaried 8.90 NA 56%
Plumbing &
Electrical
contractor/House
9 Biregowda 5.3 NA 2 56,225 maid 12.75 600 41%
10 Baby Shalini 5.5 NA 1 27,144 Salaried 15.40 600 36%
Fruit Vendor &
11 Vijayalakshmi 5.5 NA 3 24,197 Salaried 19.45 630 28%
Self-owned Tempo
12 Lakshmidevi 5.5 765 1 57,918 traveller 11.64 600 47%
13 Ashwathappa N 6.0 765 3 27,462 Salaried 23.11 375 26%
14 Vijay Kumar M 6.0 726 1 32,136 Labour Supplier 16.00 600 38%
Self owned Tata
Indica driver and
15 Manjunath S G 6.0 687 2 45,027 water business. 12.40 600 48%
16 Suresh K 7.0 681 2 25,076 School Van Driver 25.93 702 27%
Self owned Tempo
17 Veeramani 8.0 682 2 61,545 Traveller 18.75 600 43%
Tempo hire
services - Garbage
18 Kesavalu Reddy B 10.0 NA 1 50,813 collector for BBMP 40.04 1800 25%
*IEM=Income Earning Members

© For Private Circulation Only 31

 ANNEXURE 2 : BRIEF CUSTOMER PROFILE OF 31 SANCTIONED CASES - MARCH 2016
CIBIL
Sanct / # Inc Prop Plot
S Name of Amt CHM Earning MHI Val Area
No customer (lacs) Score Membe pm Profile of Applicants (lacs) (sqft) LTV
1 Muniyamma 4.40 NA 2 36678 Auto Driver + D/Wager 22.05 600 20%
2 Muniraju A 4.50 NA 2 39412 BMTC Sub Contractor 16.68 375 27%
3 Shobha 8.00 NA 2 29955 Cash Sal+Milk Business 55.37 2221 14%
4 Pillamma 3.00 794 2 19951 Cheque Salaried 5.18 301 58%
5 Venkatesh 4.50 NA 2 26323 Chq Sal + Tailor 18.25 600 25%
Cash Sal+Push Cart
6 Babu 3.50 NA 2 16160 Vendor 19.17 600 18%
7 Manohar P 4.50 NA 1 20000 Plumber 21.21 645 21%
8 Muniraju 8.00 731 1 31550 Laundry Business 32.80 600 24%
9 M Devendra 10.00 848 1 39399 Cheque Salaried 34.00 1200 29%
10 Chandranayak 3.20 NA 1 18515 Provision Stores 27.55 525 12%
11 Shasheen B 10.00 NA 3 85824 Chq Sal+Rent+Pension 64.61 816 15%
12 Ravikumar G 3.50 NA 1 17008 Tractor Driver 17.96 1120 19%
Tailor +Driver - Self
13 Sunitha R 9.25 765 2 44516 Owned Tempo Travelr 20.24 880 46%
14 Krishna V 5.00 NA 2 36089 Carpenter 14.53 800 34%
15 Muthu 5.50 NA 2 34429 Carpenter + Cash Sal 16.95 1200 32%
16 Kumara N 4.20 NA 2 16900 Cash Salaried + Tailor 20.09 1200 21%
17 Siddaraju S 8.25 763 2 35984 Egg trader+Eatery busi 25.20 1200 33%
Granite
18 Srinivas Y 4.00 773 2 25266 Contractor+Tailor 38.86 1152 10%
19 Prema 5.00 NA 2 27056 Cheque Salaried 17.20 600 29%
20 G C Latha 6.50 737 2 28800 Cheque Salaried 16.55 1008 39%
21 Shivakumari 5.00 NA 2 30006 Chq Sal+tractors 15.28 594 33%
Labour Contractor+
22 Venkatesh K 5.00 NA 2 27090 Beauty Parlour 29.78 605 17%
23 Muthamma 5.75 NA 2 20709 Cheque Salaried 21.51 231 27%
Naveen Driver - Self Owned
24 Kumar 6.00 726 1 24002 Indica Cab 15.40 1200 39%
KSRTC Driver + BEL
25 Renukamma 5.00 702 2 25405 Employee 20.21 621 25%
Salaried + Paint
Worker + Beauty
26 Renuka 5.00 NA 4 34779 Parlour 31.00 600 16%
27 Shashikala V 3.40 717 2 37093 Cheque Salaried 16.00 600 21%
28 Suma B 4.25 NA 2 20440 House maid+Chq Sal 25.75 600 17%
29 Lakshmamma 4.50 NA 2 20000 House maid + Plumber 14.50 450 31%
30 Rajkumar 5.00 702 1 24929 Plumbing Contractor 27.82 756 18%
31 Lokesh 9.50 756 2 47566 Cheque Salaried 19.60 1200 48%
----------------End of Document------------

© For Private Circulation Only 32