PRODUCT, POLICY SNAPSHOT
IndoStar Capital Finance Limited
About IndoStar Capital Finance Limited
IndoStar Capital Finance Limited (‘IndoStar’ or ‘the Company’), an NBFC is registered with the Reserve Bank
of India (RBI) as a Systemically Important Non Deposit Accepting Non-Banking Financial Company (NBFC-ND-SI).
IndoStar is a wholesale credit institution that offers a wide bouquet of debt products.
IndoStar has been established as a premier independent wholesale credit institution leveraging the experience of global best practices and local economic development to meet the growing credit requirements of Indian corporates.
IndoStar is strongly capitalized with a net worth in excess of INR 1,190 crores.
With the present focus on providing innovative and structured solutions for debt-related requirements of Indian companies, IndoStar aims to widen its relationship within the Indian financial ecosystem and we have entered in SME retail space.
Products
Loan Against Residential Property : Self Occupied / Rented / Vacant : This scheme provides term loans to Self Employed Non Professionals & Self Employed Professionals like Doctor, Architects & Chartered
Accountants.
Loan Against Commercial Property : Self Occupied / Rented : Enables customers to meet working capital, growth capital or business expansion.
LOAN AGAINST PROPERTY (LAP)
NON-RESIDENTIAL PURCHASE LOAN
If customer intends to purchase commercial property for self occupation or future leased out income, basis customers financials eligibility is drawn.
Highlights of Product
Higher tenor of 15 years.
Loan against Residential and Commercial properties.
Loan to Value depending on type of collateral – ranges from 60%-70%. Differentiated product programs – Declared income and Derived income. Multiplier on existing loans proposed for Buy over.
Approval TAT guaranteed.
Credit Shield with Insurance companies. Nil foreclosure charges after 12 months.
DECLARED INCOME PROGRAM DERIVED INCOME PROGRAM
1. Documented Income program – Vanilla Income Program
1. Debt Consolidation program 2. Gross Profit Method for traders & Manufacturers 2. Mortgage BT + Top Up
3. Gross Turnover program for professionals 3. Banking Product
VANILLA INCOME PROGRAM
ELIGIBILITY CALCULATION CHECKS & CONTROLS
Net Income (as declared in tax return) +
Depreciation +
Rental Income ( if any) +
Salary /interest paid to partner/director +
Interest on loans to be added back ( obligation or getting closed )
+
Other Income ( interest / agriculture /dividend) = Cash Profit
Self Employed : 2 years financial assessed and verified
Latest 6 months banking assessed and verified Rental to be verified from tax return / bank credit / rent agreement
Consistent Income (and non speculative) considered
Loan Details from schedules and Sanction letters Minimum Loan amount of INR 30 Lacs and
Maximum of INR 500 Lacs
Income Assessment Process for Declared
Income Program
GROSS PROFIT METHOD
GROSS TURNOVER PROGRAM
WHAT WHAT
For manufacturers and traders
Actual gross profit or 15% of turnover (whichever is lower) to be considered
FOIR up to 100% on the profit considered Tenor up to 15 years
Rental income can be clubbed with profit Can add more than one firm to calculate the eligibility
For self-employed professionals (Doctors, Architects and CAs)
Multiplier of 3, 2 and 1.5 given to doctors, architects and CAs on their professional receipts to calculate loan amount
POS of all other loans to be deducted to calculate the final eligibility. (Loans getting closed in 12 months will be ignored.)
Tenor up to 15 years
CHECKS & CONTROLS CHECKS & CONTROLS
Turnover should be > INR 2 Cr in last two years Minimum Cash profit of INR 5 Lacs in financials Business vintage of 5 years
Copy of professional degree Business vintage of 5 years Increasing trend of receipts
Income Assessment Process for Declared
Income Program contd...
DEBT CONSOLIDATION PROGRAM
WHAT CHECKS & CONTROLS
Applicable to manufacturers/traders and professionals
Maximum 9 Loans can be given Multiplier Multiplier will be given to > INR 3 Lacs loan EMI Multiplier of 1.5 will be given to >12 months old loan
EMI Multiplier of 1.75 will be given to >18 months old loan
Negative EMI Multiplier of 1 to the loans which are not getting closed
Tenor up to 12 years
RTR of all the loans should be on record or verified through banking
Consolidated EMI post IndoStar loan should not exceed 1.5 times of EMI being paid in last 6 months Two year financials are a must
Equipment loan related to business will not be considered as obligation and will not be given multiplier
Minimum Loan amount of INR 30 Lacs; and Maximum of 500 Lacs
EMIs with pending instalments < 12 months and
Income Assessment Process for Derived
Income Program
MORTGAGE BT+ TOP UP PROGRAM
BANKING PROGRAM
WHAT WHAT
Average of 5,10,15 and 20th of month is taken for last 12 months
Average balance should be twice the proposed EMI 12 months banking is required
Tenor up to 10 years
2 bank accounts can be added meeting the norms 3 customer initiated credit transactions per month for last 12 months whereas total 5 transactions (Dr & Cr)
CC utilization should not exceed above 90%
CHECKS & CONTROLS CHECKS & CONTROLS
Loan credits and one time credits in banks to be excluded for calculating avg. bank balance
Income Assessment Process for Declared
Income Program contd...
For Manufacturers/traders and professionals with running mortgage loans
Mortgage EMI Multiplier
Repayment track with sanction letter required Non PDC backed and BT from scheduled cooperative banks are not allowed
Tenor up to 15 years MOB Multiplier 6-12 1.15 12-18 1.30 18-24 1.5 24-36 1.75 >36 2
Last 2 year financials are required
For any clarification
Please contact us…
REGISTERED OFFICE
Room No. 6, 4th Floor, Commerce House,
2A, Ganesh Chandra Avenue Kolkata – 700 013
