FAQs
What is the primary focus of the Secured Micro Loan Business segment?
The primary focus is to cater to the funding needs of small businesses and individuals through customized short and long-tenured products with collateral for working capital and business expansion.
Who are the target borrowers for Secured Micro Loans?
The target borrowers include self-employed individuals and non-individual entities looking for financial assistance for working capital requirements or business expansion.
What is the nature of transactions in the Secured Micro Loan Business?
The business is highly retail in nature, characterized by high transaction volumes and smaller ticket sizes, yielding significantly higher spreads and profit margins.
What are the key business objectives for the Secured Micro Loan segment?
Key business objectives include achieving a targeted loan book size, ensuring profitability, minimizing delinquency, and maintaining portfolio health through stringent controls and monitoring.
What factors can impact the profitability of the Secured Micro Loan Business?
Higher costs of funding can impact profitability and competitiveness in terms of loan rates offered to customers.
Why is understanding product market characteristics important?
Understanding product market characteristics helps in gaining a competitive advantage when structuring loans and identifying leads by managing connector relationships and acknowledging regional nuances in financial preferences and practices.
What are the key performance indicators for the RO/RM – ABFL position?
The key performance indicators include achieving sales targets related to targeted book size, profitability, growth, and customer service objectives as agreed with the Area Head (Sales) – ABFL.