Credit Policy
Konark Finserv —
Credit Policy
Konark Finserv follows a structured and responsible credit assessment framework designed to ensure prudent lending, customer affordability, portfolio quality, and regulatory compliance.
This Credit Policy defines the principles, underwriting standards, eligibility evaluation methods, approval processes, repayment assessment mechanisms, and risk management practices adopted while extending credit facilities to customers through digital and assisted channels.
1. Objectives of the Credit Policy
Responsible Lending
Ensure loans are provided only to eligible borrowers with repayment capacity.
Risk Management
Maintain a balanced credit portfolio while controlling delinquency and default risks.
Regulatory Compliance
Align lending operations with RBI and NBFC compliance requirements.
2. Credit Eligibility Assessment
Konark Finserv evaluates multiple financial and non-financial parameters before sanctioning loans.
- Identity and KYC verification
- Income and employment assessment
- Banking and transaction behavior
- Existing debt obligations
- Credit bureau history and score
- Fraud risk indicators
- Digital and behavioral risk assessment
3. Customer Segmentation
Customers may be categorized based on risk profile, repayment capacity, and credit behavior.
Low Risk
Stable income profile and strong repayment history.
Moderate Risk
Average repayment behavior with manageable exposure.
High Risk
Limited repayment history or elevated risk indicators.
4. Underwriting Standards
Konark Finserv adopts a combination of automated and manual underwriting processes for loan decisioning.
- Rule-based automated credit decision systems
- Affordability and repayment analysis
- Debt-to-income evaluation
- Internal fraud prevention checks
- Verification of submitted information
5. Loan Sanction & Approval Process
Application Review
Customer information and eligibility reviewed.
Risk Evaluation
Internal systems assess repayment probability.
Approval Decision
Loan approved, modified, or declined.
Digital Agreement
Customer receives sanction and repayment details.
6. Pricing & Interest Rate Framework
Interest rates and charges may vary based on internal risk assessment and customer profile.
- Credit score and repayment history
- Loan tenure and exposure amount
- Risk categorization parameters
- Operational and funding costs
All applicable charges, processing fees, and repayment obligations are disclosed transparently before acceptance.
7. Responsible Lending Principles
Affordability Focus
Loans are assessed considering customer repayment ability.
Customer Protection
Transparent communication and ethical practices maintained.
Fair Evaluation
Non-discriminatory credit assessment procedures followed.
8. Delinquency & Collections Management
Konark Finserv follows ethical and legally compliant collection procedures.
- Timely repayment reminders and notifications
- Customer-friendly communication approach
- No coercive or abusive recovery practices
- Compliance with RBI recovery guidelines
9. Fraud Risk Management
Advanced fraud prevention mechanisms are integrated into the credit assessment framework.
- Identity validation and document checks
- Duplicate application monitoring
- Device and behavioral intelligence analysis
- Suspicious activity detection systems
10. Customer Rights & Transparency
Customers are entitled to receive:
- Clear loan sanction and repayment information
- Digital copies of agreements and disclosures
- Information regarding applicable charges and penalties
- Access to grievance redressal mechanism
11. Policy Governance & Review
This Credit Policy shall be periodically reviewed to ensure alignment with:
- RBI and NBFC regulatory updates
- Portfolio performance trends
- Risk management requirements
- Operational and technological changes
Strengthening Trust Through Responsible Credit Decisions
Konark Finserv remains committed to maintaining a balanced, transparent, and customer-centric lending ecosystem supported by prudent credit evaluation and responsible financial practices.