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Overview of Monexo's Credit Assessment Process

Short Term Personal Loans

The assessment primarily focuses on three key areas:

  1. confirming the borrower’s identity,
  2. evaluating their ability to repay, and
  3. understanding their intention to fulfill the repayment obligation.

To meet the basic eligibility criteria, a prospective borrower must:

  • Be at least 18 years old.
  • Be an Indian national with valid KYC documents.
  • Have a source of income sufficient to meet the loan EMI, except Students.

Underwriting Process:

Monexo reviews each application for:

Identity Checks

  • Video KYC Verification or any other KYC verification allowed by RBI
  • Only employees from MCA or Students from Registered Universities
  • Locations Monexo is doing business
  • Professional/employment information.

These documents undergo thorough validation against the Income Tax database, PF Database and Aadhar Database ensuring the authenticity of the borrower’s information.

Repayment Capacity

  • Income > Rs.10,000
  • Detailed analysis of income and expenditure.

Additional Documents:

Monexo Collects certain documents from the borrowers to verify all the variables listed above such as:

  • Financial statements.
  • Bank account details.
  • Bureau Report.
  • Pay slips except for Students
  • ID cards

Social Impact Loans:

Monexo has a range of Conservative & Moderate Risk loan products as well that Monexo caters to Female Rural entrepreneurs for income generation.

To meet the basic eligibility criteria, a prospective borrower must:

  • Female only with valid KYC documents
  • Group of 4 to 6 female entrepreneurs coming together as Joint Liability Group (JLG)
  • Be at least 18 years old.
  • Have a family income of less than 25000/month
  • Co-borrower (Male) is mandatory who also must be more than 18 years of age
  • Both Borrower and Co-borrower are ensured against death up to the loan amount.
  • Monthly financial education and group / center meeting conducted in person

Disclosures and Disbursement:

Prior to offering the loan to investors/lenders, Monexo transparently communicates the terms of the loan and repayment to the borrower.

This includes:

  • Clearly outlining the loan terms.
  • Providing a detailed repayment schedule.

The borrower’s acknowledgment and acceptance of these terms are duly recorded. Once accepted, the loan amount is disbursed promptly to the borrower’s registered and verified bank account.

Monexo employs a cutting-edge Artificial Intelligence-based credit underwriting model, meticulously evaluating approximately 530 data points to ascertain a borrower’s eligibility and risk profile.

Monexo’s meticulous credit assessment process ensures a robust understanding of the borrower’s financial profile, fostering responsible lending practices and mitigating risks for both borrowers and investors.