General FAQ about the loan products offered on the Artha Credit platform and the loan application process

Artha Credit Process explained
  1. SignUp and registration
  2. Artha Credit processes the loan request of SMEs on behalf of the lenders who are partnering with the Artha Credit platform. The journey starts with the “Borrower” (SME) registering on the Artha platform. Artha platform ensures that the applicant journey is smooth and seamless from registration to submission of the loan application along with required KYC data.

  3. Loan application and KYC submission
  4. Upon successful registration, the Borrower can upload the loan application request which also includes submission of supporting documentation (eg. Invoices) as well as information about collaterals and authorised signatories of the Borrower (SME).

    Thereafter, the Borrower (SME) and Business Owner completes KYC and other onboarding formalities with the prerequisite set of documents including SME and Business Owner personal verification documents as well as submission of credit related information and business documents (eg. Bank statements, Financial Statements etc.). Post KYC document submission and verification of business, the Borrower and Owner gets onboarded on the Artha Credit platform. In case the loan application requires additional Signatories or Guarantors other than the Business Owner, these individuals are also onboarded as co applicants on the platform.

    Artha Credit will then process the loan request on behalf of the lenders partnering on the Artha Credit platform.

  5. Credit Risk Assessment
  6. After onboarding and submission of all necessary information, the Artha Credit platform analyses all the information submitted and undertakes KYC scoring and credit risk assessment of Borrower. Once the minimum credit score requirement is met, the loan request along with the collateral offered by the Borrower are recorded in the Credit Assessment Report. The final credit score along with the Credit Assessment Report is then generated by the platform and forwarded to the lender who has referred the Borrower to the Artha Platform.

    In case the Borrower does not meet the minimum credit standards of Artha Credit platform, the loan application will not be processed, and the decision will be accordingly communicated to the lender who referred the Borrower.

  7. Loan approval, Loan documentation and Collateral hypothecation
  8. Once the Credit Assessment Report along with the loan application is forwarded to the lender, the latter then undertakes the loan approval process based on the bank’s internal guidelines as well as risk appetite on the borrower. The lender, after approving the loan request will communicate the decision through its offer letter to the borrower and will undertake the completion of necessary documentation for loan disbursal and creation of charge on the collateral offered. Post completion of all formalities, the lender disburses the loan to the SME.

    The decision to approve the loan request and disburse funds to the borrower is undertaken by the lender alone. Artha Credit does not recommend or solicit loan approvals on behalf of any borrower who may submit a loan application through its portals. Artha Credit is not involved in this decision-making process and does not have any obligation towards the borrower regarding the approval and disbursal of any loan application which has been processed by the Artha Credit portal.

  9. Fund disbursement and loan portfolio management
  10. Once the lender has completed all documentation formalities with the borrower, it disburses the loan to the latter. While Artha Credit is not involved in the loan approval decisioning or the loan documentation process, Artha Credit may be involved with the lender in processing the disbursement of the loan depending on the partnerships that Artha Credit has with payments processing firms in different jurisdictions.

    Artha Credit may also be involved in post disbursement management of loan portfolios of the lender as an additional service provided to the lenders. However, Artha Credit will not be involved in any form of collection activities and will not contact the borrower with regards to collection process which may be initiated by the lender.