This document demonstrates the Credit risk assessment & underwriting policies for their respective operations and a brief overview of the overall process practiced at DATSON EXPORTS LIMITED and followed by Credify Technologies Pvt. Ltd (CREDITT+).

MISSION

The credit department defines the requirements for lending of instant personal loans for new and existing customers and maintaining credit lines and limits for active accounts and returning customers with appropriate payment terms. The credit department also strives to decide credibility, loan tenure, rate of interest, and loan amount to facilitate sales to customers with suboptimal credit histories.

GOALS

Each quarter, the credit department works with executive management to establish new goals for the coming quarter. These goals are based on many factors – including the company’s credit policy, sales and financial requirements, competition, our desire to move into new markets, and the condition of the domestic and global economy.

The credit department’s main goal is to onboard a customer with the loan application origination process till the adjudication process. The credibility check and financial data verification of the applicant are executed by the credit department. The repayment and recovery of the lent amount are handled and executed by the collection department. Throughout the whole process, the tech system assists lending & collection by performing risk assessments on the data provided by the user.

The tech system and algorithms are created and managed by the in-house tech department.

ROLES AND RESPONSIBILITIES

Chief Risk Officer : The Chief Risk Officer has overall credit and collections responsibility for the credit department. Builds business logic, credit risk algorithms for assessments and handles the risk aspect of the business overall.

Operations Head : The Operations Head has to manage all the resources that are allocated to the lending process and department. Sets rules, strategies, and approaches to achieve the goals set by the management and reports directly to CRO and management board.

Collections Head : The Collections Head has to manage all the resources that are allocated to the recovery process and collection department. Sets strategies and approaches to recover the lent amount that is yet to be collected and reports directly to CRO and management board

Accounts Receivable : This position/team coordinates with the Operations & Collections Heads and is responsible for daily accounts receivable activity, including invoicing and cash posting. Reports to management board when needed.

Legal Head : The Legal Head is responsible for all the legal activities of the organization including sending notices to defaulters, taking legal action against them, and building legal policies/documents for the company.

Lending Team Lead : The Lending Team Leads are responsible for managing the credit evaluation, review, and approval process, as well as managing overall risk to the portfolio. Only Team Leads and Operations Head are authorized to issue communications with customers concerning credit-related issues. Report directly to Operations Head.

Credit Analyst : The Credit Analysts are responsible for checking the credibility of a loan applicant and

going through the applicant’s financial data and evaluating the same. Report to their Team Lead.

Tele Callers : Tele-callers are responsible for customer support, assisting them throughout the process, and resolving their queries to get disbursement. Report to their Team Lead.

CREDIT EVALUATION POLICY

The credit department establishes and maintains credit lines and payment terms for all new and existing customers. Creditworthiness is determined via credit risk assessments (aided by AI/ML-based algorithm) on the customer’s employment, background, location, & financial information.

Our company uses credit scorecards to determine creditworthiness and credit line assignment strategies. The credit department evaluates the scorecard result alongside other information provided in the online credit application and will determine if the customer has the ability and willingness to pay at the required.

These processes are automated in nature.

Appropriate credit limits will be set in the absence of any red flags, such as bankruptcy or a documented case of fraud.

PARAMETERS FOR SANCTIONING LOAN:

ROLLOVER

LOAN VERIFICATION

CIBIL

CREDIT REVIEW POLICY

For existing customers, the credit department reviews credit limits as needed. All limits may be subject to change based on changes in customer creditworthiness and historical performance with similar persona. In the cases where appropriate documentation is missing, address details are not validated, employer details are missing. These cases are then referred to the credit department for detailed verification. If satisfactory arrangements can’t be made, the account is then placed on credit hold and the application will be marked on hold or cancelled.

TERMS OF SALE POLICY

Terms of sale are determined based on current sales programs and promotions. The credit department works closely with sales Department to institute and modify appropriate terms that maximize sales outcomes.

Advance payment discounts may be used to close the new business if needed. The standard loan tenure may vary between 7 to 45 days based on the salary date of the applicant. As the payment due date is set the very next day of the borrower’s salary date.

Terms for loan applications already disbursed cannot be altered or modified without approval from the credit department. Any changes from standard payment terms require a variance request form.

INTEREST RATE CALCULATION

BAD DEBT POLICY

When a severely delinquent account (90+ days past due) is not resolved with a good faith effort of payment, the expense may be written off to bad debt. Our company’s definition of bad debt is an uncollectible balance owed from a customer experiencing financial hardship such as bankruptcy. Non- paying accounts can be written off to bad debt only after the Customer demonstrate unwillingness/inability to fulfil his/her debt obligation payment has not been secured after Three months (90 days).

Complaint Resolution:

LEVEL-1 : ESCALATION OF COMPLAINTS REGARDING CREDITT+ APP:

The customer may contact Creditt+’s customer support executive in case of any query/problem or grievance.

The customer can write an email to customer.support@creditt.in

The office would be operational between 10:00 to 19:00 (except public holidays)

LEVEL-2 : ESCALATION OF COMPLAINTS REGARDING REPAYMENT OF LOAN AND OTHER:

If the customer is not satisfied with the response received from the customer support executive or the query/problem was not answered/solved within 7 working days, he/she may raise the issue with Grievance Redressal Officer.

The name and contact details are as furnished below:

Name : Kavisha Inamdar

Contact Number : 08097452970

Email ID: grievance@creditt.in

The office would be operational between 10:00 to 19:00 on Monday to Friday (except public holidays)

LEVEL-3 : ESCALATION OF COMPLAINTS (IF NOT RESOLVED IN LEVEL 1 AND 2):

If the complaint is not resolved within a period of 5 working days after raising an issue with Grievance Redressal Officer, the customer/borrower may appeal to the RE Nodal Officer in charge.

Name : Mr. Raghav Mundra Das

Contact Number : 033 22851012

Email ID: info@datson.net

Training and Development:

• Regular training to employees involved in the lending process to ensure consistent implementation of the credit policy.