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Innovative Lending Strategy During Economic Disruption
Project type
Credit Risk & Lending Strategy Project
Date
April – June 2021
Location
Bengaluru India
Amid the peak of the COVID-19 pandemic, financial institutions faced severe challenges in managing NPAs (non-performing assets) and maintaining business continuity. I proposed and implemented a strategic lending model focused on reviving engagement with defaulting but eligible customers through a structured Top-Up Loan Scheme.
Recognizing the liquidity stress among borrowers and increasing delinquencies, I developed a business plan that offered top-up loans to selected customers with prior defaults — on the condition of partial recovery from their current outstanding balances. This forward-thinking solution effectively balanced risk mitigation with revenue continuity, enabling renewed credit access while minimizing exposure to bad debt.
💡 Key Strategic Actions:
Analyzed customer repayment patterns and identified potential candidates for the Top-Up program.
Proposed a deduction-based recovery model where a part of the overdue amount was recovered before releasing the new loan.
Designed the operational flow, eligibility criteria, and approval process in the BR.NET system for seamless implementation.
Collaborated with credit, legal, and collections teams to ensure full compliance with NBFC regulations.
Tracked disbursement metrics and recovery KPIs to optimize loan performance and reduce risk.
Integrated the plan with mobile field operations to reach customers efficiently during lockdown conditions.
🏆 Impact & Achievements:
💰 Surpassed loan disbursement targets despite the economic downturn.
📉 Reduced NPA risk by bringing previously defaulted customers back into the credit ecosystem.
🔄 Maintained seamless business operations without incurring additional losses.
🥇 Received the Best Performance Award for strategic innovation and successful delivery.
✅ Business Value Delivered:
Safeguarded the loan book during a critical financial disruption.
Strengthened borrower confidence through tailored financial support.
Developed a replicable risk model for use in future credit stress scenarios.