PowerPoint Presentation

[Virtual Presenter] This is the first slide of our training video on Rejection Control, presented by L&T Finance. As the Regional Training Manager for West Bengal, I am pleased to lead you through this crucial topic that can significantly affect your work and achievements. Let us embark on our journey towards creating an excellent workplace, which has been certified by L&T Finance from May 2022 to May 2025. So, let's begin and discover how to efficiently handle rejection..

[Audio] Today, we will be discussing how to effectively manage rejection control in the lending and financing industry. This is slide number 2 out of 18 in our presentation titled "L&T Finance Rejection Control." Our team's goal is to increase customer satisfaction and success by improving sourcing throughput, increasing FLO productivity, and reducing customer credit check costs. This can be achieved by improving sourcing quality and maintaining a good repayment record. These efforts not only enhance our institution's reputation, but also attract and retain more customers for the long term. This training will teach us valuable strategies to effectively manage rejection control and achieve these goals. Let's begin our journey towards creating a great place to work and setting new standards in the lending and financing industry..

[Audio] In this training video, we will be discussing Credit Rejection Reason & Solutions and strategies for handling rejected loan applications. Credit rejection can be frustrating for both the customer and the company, but with the right approach, we can turn it into a positive experience and maintain a good relationship with our customers. On this slide, we have a table showing the top reasons for credit rejection and their corresponding solutions. The first reason is rejection due to Association Rule, and in this case, we should inquire about any active loans the customer may have before their loan application. This will give us a better understanding of their financial situation. The second reason is rejection due to Exposure Rule, and to handle this, we need to calculate the outstanding loan amount of any active loans before their loan application. This will give us a clearer picture of the customer's financial capacity. Another reason for rejection is DPD MFI, and in this case, we should review the customer's loan passbook to assess their repayment record. It's important to note that for first-time customers applying for an ACTIVE LTF LOAN, they must go through loan eligibility checks. For existing customers with an ACTIVE LTF LOAN as per BRNET, we should check their active loan status through MERC and make a call log to keep track of their loan status and ensure their eligibility for a new loan. It is also essential to review the sanctioned amount for each rejected application and aim to minimize the discrepancy between the minimum disbursed amount and the maximum targeted recovery percentage. This will help us strike a balance between the customer's needs and the company's profit. For more tips and strategies on handling rejected loan applications, stay tuned for upcoming slides. Thank you..

[Audio] Slide number 4 of our training video on "Rejection Control" for L&T Finance discusses credit rejection reasons and solutions. The table shows that credit rejections can occur due to various factors, including the income of the applicant and co-applicant, adverse live tradelines, and high FOIR. These can be prevented by carefully reviewing income, checking for active loans with Bandhan Bank, and adhering to FOIR norms during appraisal and sourcing. It is crucial to accurately record the applicant's income and follow NTC and OTC policies while forming groups. By being aware of these reasons and implementing solutions, we can increase our credit approval rates and better serve our customers..

[Audio] We will now discuss FOIR Rejection Reason and Solutions on slide number 5. The slide includes a table with data on the reasons for FOIR rejections and their corresponding solutions. The first reason is high EMI obligations, which can be addressed by asking customers about their total active loans and EMI before they log in. The second reason is when the minimum household income does not meet the requirements, and the solution is to recheck the household income. This table will help us understand the reasons for rejection and how to resolve them. Let's thoroughly review the table to ensure a full understanding of the various reasons and solutions. This slide can be used as a reference for future FOIR rejections. It is essential to take note of this information for personal knowledge and to assist our customers. Moving on to the next slide, we will discuss the significance of maintaining a good credit score..

[Audio] In this slide, we will discuss the reasons for customer rejection in repeat loans and how we can mitigate them. Repeat customers are essential for a successful lending business, however, there are factors that can lead to their rejection. The table in this slide shows the different reasons for customer rejection and their corresponding causes. We will examine these reasons and their impact on our lending process. The first reason, RA-1, is when the loan amount is below the minimum limit set by the company, often due to the customer's loan history or credit score. The second reason, RA-2, is based on the age cut off of the customer, where those above a certain age may not be eligible for a repeat loan. RA-3 refers to an active association rule, where a customer associated with a defaulting borrower will be rejected. RA-4 considers our tenor and OPD policy, ensuring customers have a stable income and timely loan repayments. RA-5 is related to the customer's DPD in the latest month, a high DPD may lead to rejection. Lastly, RA-6 looks at the customer's overdue amount and any adverse trade line activities, such as active loans with high series and outstanding amounts. Understanding and addressing these reasons is crucial for controlling rejection rates and providing a better lending experience for our customers. Our discussion on rejection control will continue in the next slide..

[Audio] Slide number seven of our training presentation on L&T Finance Rejection Control focuses on the various reasons for rejection in our Business Process Management. One common reason is when a customer is not interested in taking a loan due to a low sanction amount. This may indicate a lack of value in our product or service. Another reason for rejection is when the customer is associated with a high-risk company, known as a Forward Looking Organization. Rejection may also occur when a customer has not applied for a loan, potentially due to lack of awareness or current need. A crucial factor that can lead to rejection is the influence of a "ring leader" within a group, persuading others not to take a loan from us. Additionally, we may reject customers from unapproved villages due to issues with documentation or unreliable financial data. It is important for us, as Regional Training Managers, to educate our team on these reasons for rejection and implement strategies to reduce rejection rates and increase loan approvals. Let us now proceed to the next slide..

[Audio] On slide 8, we will discuss the reasons for rejection in Business Process Management. These reasons greatly impact our efficiency and success. The first reason is when the original KYC documents are not available or are deemed invalid. We must ensure all documents are in order to avoid rejections. Another reason for rejection is when group members are blood relatives, which can lead to conflicts of interest. We must also be aware of customers outside of our geographical limit, as this may affect our ability to serve them and result in rejection. Age limits for applicants and co-applicants are also important. If they do not fall within the set limit, their application may be rejected. Finally, the customer's profile and income must meet our standards for their application to be considered. It is crucial for us to carefully review and assess these reasons for rejection to ensure a successful BPM process..

[Audio] In this slide, we will discuss various checkpoints that can reduce rejection of loan applications. The first checkpoint is the age of the applicant and co-applicant, as it is important to meet the age requirement for our loan process. Another important checkpoint is the customer and co-applicant's occupation, as it provides insight into their income potential. The Joint Liability Group model has been successful in reducing loan defaults and should be considered when evaluating applications. It is also beneficial if the co-applicant is from the same or nearby village as the customer, as it builds trust and community within our loan process. Consent from the co-applicant is essential for the loan application to avoid complications and rejection. The next checkpoint is checking for any commission being taken for the loan, which goes against our company policy and should be avoided to ensure fair and unbiased decisions. The loan purpose, quality of the house being purchased, number of earners and dependent children in the family, and their disposable income are all important factors to consider in the application process. It is also necessary for the customer to have a valid bank account for disbursement and repayment purposes. Lastly, the fixed obligation to income ratio should be evaluated to maintain a healthy balance. These are the various checkpoints that can help to reduce rejection of loan applications. We will continue with more information on this topic in the next slide..

[Audio] We are currently discussing our Rejection Control strategy and are now on slide 10 of 18. This slide focuses on the significance of understanding and addressing OPS rejections. OPS rejections have a major impact on our customer experience and overall business results, and it is crucial to effectively manage them. These rejections occur due to mistakes and errors during the loan process, leading to delays and unsatisfied customers. As an organization, it is our responsibility to have measures in place to control and reduce these rejections. By streamlining our processes and providing proper training and support to our employees, we can minimize OPS rejections and improve our overall performance. Let's work together to identify the root causes of these rejections and take necessary action to overcome them. Remember, effective rejection control is essential for us to maintain our reputation as a Great Place to Work and a Certified company. We appreciate your attention and let's continue on our journey towards success..

[Audio] We will discuss rejection control in the context of L&T Finance. It is a crucial aspect in the finance industry and plays a major role in ensuring the success of any financial institution. To better understand this concept, we will address a common question - "RPM Sir, I am also confused, how do I fix this?" This highlights the need for effective rejection control measures in our day-to-day operations. As the Regional Training Manager for West Bengal, it is my responsibility to ensure our team members are equipped with the necessary knowledge and skills for efficient rejection control. L&T Finance has been certified as a great place to work, and it is our collective effort to maintain this reputation..

[Audio] Our next topic is "Rejection Control" and as a loan officer, the fear of rejection can be a major challenge. However, by following these checkpoints, you can reduce your rejection rate to zero. It is important to have clear communication with clients and address their concerns in order to build trust and minimize rejection. Being prepared with all necessary documents and information before submitting a loan application not only saves time, but also shows professionalism and dedication. Researching a client's background and credit history thoroughly can help anticipate any red flags and avoid potential rejections. It is also crucial to have a thorough understanding of your products and services, which will allow you to confidently answer questions and address doubts, reducing the chances of rejection. In case of a rejection, it is important to follow-up and understand the client's concerns. This not only helps improve future applications, but also shows your commitment to providing the best service. Remember these checkpoints and your rejection rate will decrease to zero..

[Audio] In Slide 13, we will discuss Rejection Control. In previous slides, we have emphasized the significance of complying with bank document guidelines. The most common reason for rejections in the OPS process is non-compliance with the bank document guidelines provided by the OPS team. This can include missing documents, incorrect information, or not following formatting requirements. It is crucial to understand and follow these guidelines to avoid rejections and delays in the process. Rejections not only cause frustration for the customer, but also result in a loss of time and resources for the bank. As a regional training manager, it is your responsibility to ensure your team is well-informed and accurately follows the bank document guidelines to minimize rejections. Let us now move on to the next slide to learn more about handling rejections and improving efficiency in the OPS process..

[Audio] On slide 14, we will discuss how to handle rejection control for the "Can I approve this KIOSK passbook?" question. It should be noted that the bank seal is not visible in the bank KIOSK passbook, which may lead to rejection from the customer. This can have a negative impact on the customer's experience and may result in business loss. In such cases, it is crucial to handle the rejection with care and professionalism. We must explain to the customer the reason for rejection and provide alternative solutions to address their concerns. It is important to remain calm, show empathy towards the customer, and consider their feedback to find a mutually beneficial resolution. By effectively handling rejections, we can maintain a positive image for our company and ensure a satisfactory customer experience. Keep these tips in mind to confidently handle rejection control..

[Audio] Slide number fifteen discusses the rejection control process at L&T Finance. As a reminder, I am Uttam Maity, Regional Training Manager for West Bengal and I will guide you through our certified program at L&T Finance. This slide addresses the question: Can the KIOSK passbook be approved? This is a common concern when checking passbooks at the bank's KIOSK. Our answer is no, we cannot approve the passbook if the bank seal is not visible. Our rejection control process ensures thorough checking of all documents and passbooks before approval. This is to maintain accuracy and integrity in our processes. It is crucial to ensure all necessary information is clearly visible before approving any passbook. Let's continue with the rest of the presentation..

[Audio] In this section, we will discuss the topic of rejection control in relation to bank passbooks. It is important for us to understand how to handle situations where we may encounter the common question of whether we can approve a bank passbook. When dealing with bank passbooks, it is crucial to thoroughly check all necessary details, such as the account number and date, to ensure their accuracy before giving approval. If any discrepancies are found, it is best to address them immediately and seek guidance from superiors. It is also important to maintain a professional and positive relationship with bank personnel for effective communication and prompt resolution of any issues, which also reflects well on our organization. We hope this slide has provided insight into the significance of rejection control for bank passbooks. Let us continue our high standard of work and promote a positive work culture at L&T Finance. We will now move on to the final slide of our training video..

[Audio] We can improve our rejection management to ensure high-quality sourcing at L&T Finance. Our main objective is to minimize rejections and enable all customers to successfully apply for our services. The only circumstances in which a customer should be rejected is if no other options are available. It's worth noting that all fields, apart from the applicant and co-applicant name and KYC-1, can be modified. This means we have the authority to make necessary changes and approve the application rather than rejecting it. Let's make it our mission to collaborate and prioritize rejection control. Together, we can create an excellent work environment and provide exceptional service to our customers. Thank you for being a part of this journey..

L&T Finance. THANK YOU. PUBLIC.