Understanding challenges in property titles in India- property need not always be a safe security-Concurrent list of the Indian constitution.
Key drivers of need for LAP- Identifying possible borrowing causes by evaluating past financials and / or conducting personal discussions with the customer.
Identifying possible risks to future sustainability based on past performance, present context and structure loan suitably.
Tools and techniques for evaluating financial statements in the context of LAP
Target audience
Credit Officers, Risk Officers at Banks, NBFCs
Relationship Managers at Banks and NBFCs
Promoters of SMEs.
Product and policy managers at Banks/NBFCs / Fintechs
Course Content:
Day 1:
Session 1
Overview on property market in India
• Overview of the economic scenario – structural and technological challenges going forward
• Importance of understanding and monitoring key economic drivers of shifts in business models and financial structures
Session 2
Understanding issues in land ownership and title transfer in India
• Understanding the concurrent list of the Indian Constitution
• Evolution of ownership and land titles in India
Session 3
Financial statement analysis of different types of businesses (calculation of ratios, interpretation of ratios will vary with type of business entity, type of sector it operates & size of the entity)
• Manufacturing, Trading and services/Sole proprietor, partnership, corporate
Session 4
Cash flow analysis
• Importance of cash flow from operations wrt business viability
• Analysis of projected cash flows from actual cash flows
Day 2:
Session 5
Deciphering the business model of the customer
• Revenue model of the customer
• Key success factors of the business
• Major risks in business
Session 6
Risks in Loan against Property
• Assessing different risks in the loan against property business - assessment risk, collateral risk – technical and legal, opera-tional risks – fraud etc
• What are different mitigating steps that can be identified and implemented?
Session 7
Effectiveness of personal discussion
• Proper preparation for discussion
• Critical skills for personal discussion
• Key areas to be coveredduring discussion
Session 8
Portfolio Monitoring & Early Warning action
• Different parameters on which LAP should be monitored.
• Detection of Early warning signals in the portfolio & remedial actions
Funding to Real Estate Developer (In real estate funding, assessment is done of the developers separately – track record, financial flexibility and that of specific projects that is being funded – project construction & legal quality )
