Advantages of consulting a Direct Sales Associate for credit appraisal.

Advantages of consulting a Direct Sales Associate for credit appraisal.

Have you ever required a loan? Obviously, we all must have had at some point of time in our lives been to a situation where we might have required a loan. Why is loan required? May be for some business expansion, longer working capital cycle etc. At that very moment we always approach to a bank. But is it so easy to find the right bank that understands our requirements, or don’t we have lack of time as we need to take care of our other important tasks as well?

Mr. Anil Goyal, a reputed industrialist, owns majority share in ABCD ltd. He is aiming to add a new division in his garment manufacturing division, which would cater to the middle and upper middle section of society. To fulfil this, his credit demand is fifteen crores needed over the next 8 months. The credit availed is for acquiring new machineries, and capital for day to day operations like raw material costs, staff remunerations, packing charges, etc. He planned to service the debt obligations through revenue generated from sales operations and product deliveries. He is ready to put his multiple properties offered as collateral.

Isn’t it a great opportunity for the banks to give out their loan facility to such a prospect? But who would help Mr. Goyal to identify an apt bank and how will bank reach and check on such a customer? Thus, he should reach out to an appropriate bank through a DSA- New Delhi Financials (NDF) who will manage his financial needs smartly for him.

Direct Sales Associate

DSA are most commonly found working for banks who sell their banking products like loans, mutual funds etc. They act as public face of the bank and is responsible for dealing with any or all customer questions about the products and services the bank offers. A DSA is also expected to be continuously updating their knowledge of the company products, services, and policies. Complaint handling is a critical part, and turning a frustrated customer into a happy customer, while adhering to company policies, requires a combination of compassion and sensitivity.

Shouldn’t the DSA act as one point of contact for both Mr. Goyal and bank to make things easier and quick? Suppose you as a customer need for a credit appraisal on your loan application, who comes first in your mind to contact? Credit appraisal basically refers to assessing a loan application or proposal in a thorough manner in order to measure the repayment ability of the loan applicant.

Credit Appraisal

Whether one applies individually or as an entity, a lending bank will always conduct a detailed and systematic credit appraisal process before giving a loan. A successful credit appraisal starts with a question and end with an answer. It is about identifying applicable risks and questioning the borrower about them, advises them to alleviate those risks with some structuring, then presenting to credit committee acting as good cop and bad cop both.

Under credit appraisal, the bank will have to check the organisation’s costs, expenses, estimated revenues, nature of the business, evaluate its demand and supply in the market, in order to understand if the company will be able to repay the loan without any trouble. This is very crucial as this determines the interest income and the capital of the bank. The repayment behaviour of a borrower directly affects the performance of the bank.

But who does the credit appraisal process for both bank as well as the customer? As a customer do you feel comfortable sharing your whole financial and confidential information again and again with different people. Wouldn’t it be tedious and risky to do?

Roles and responsibility

How about having a one person do this all for you before presenting your financial statements in front of bank. Here comes another important role of NDF- financial consultant. Every financial institution will have certain norms, rules, and standards to assess the creditworthiness of a loan applicant. If a borrower has a high creditworthiness, there is high probability that his or her loan application will be accepted by the bank. NDF is one such organisation who has knowledge and skills to do this for you as well as banks and make this process easier for both.

We keep updating our customer information and verifying accuracy as needed. We help in processing, evaluating and completing financial analysis on loan requests, monitoring and maintaining the overall credit quality of existing loan facilities, making sure that all required documentation is obtained complete and do the necessary negotiations amongst both the parties so that both ends meet at some point.

NDF assess your solvency by comparing credit history, loan amount, income, time taken to pay different equated monthly instalments (EMIs), credit score given by credit bureau like CIBIL which should ideally be 750 and above, repayment capacity, and your overall expenses. Generally, banks and NBFCs look at certain ratios like Fixed obligation to income ratio (FOIR) which help to assess if a certain portion of your income is enough to manage EMIs for the loan, profitability ratios, debt to income ratios etc. in order to check your loan eligibility.

To apply for credit appraisal, you will be required to mandatorily furnish certain government-approved documents such as proofs for Income, Age, Repayment ability, present and former loans, monthly expenses, future liabilities, tax history, assets owned etc. NDF is thorough in all aspects of credit appraisal and makes things easier and quick in completing the process.

So, finally when banks are satisfied with the overall efficacy of Mr. Goyal, he will get a loan appraisal of fifteen crores approved and will go on to start his new division of garment business, however, what the future holds can never be foretold, when a loan appraisal is sanctioned.


The task is huge – but NDF take a structured approach in this challenging task. We at NDF know how to identify a good proposal comparing different banks, how to save yourself by smartly following strong terms and conditions, ensure compliance of lending protocols and always ready to respond to inquiries from lenders and clients along with assisting in client audits.

We are given priority for our credit appraisal services as we have in-house developed software which uses the relevant algorithm to come up with an assessment as close to what the bank will appraise

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