Equal Monthly Instalment Loan

The importance of EMI(ME/MSME) in Microcredit today cannot be ignored. Some MFBs and MFIs are not paying much attention to this sector due to technical risk factors. Yes, it is absolutely true that the risk factor can increase many times if one (Sales Team Member) is not having the complete technical knowledge and ability to probe and collect financial facts in a way the same for analysis and making decisions rather than financial calculations knowledge.

I think that the sales teams should be comprehensively trained in the collection and probing of financial facts for these loans, but as far as the analysis of these facts is concerned, automated calculation methods can be used to calculate the net worth of the customer. " and his/her "Investment Plan" can be well understood. This can greatly control the risk factor and speed up the processing.

For EMI(ME/MSME) loan application appraisal while collecting and analysing the facts and figures, two types of financials are essentials.

Customer's Net Worth through (Total Assets. Liability & Equity status) Balance Sheet and Household Cash Flow Chart (Inflow & Outflow). From these two we can derive the proposed loan amount and maximum monthly loan instalment size.

Although making a balance sheet is necessary in every case, I will give more importance to the household cash flow chart to determine the proposed loan amount and monthly loan instalment.

I have provided an automated Excel cash flow chart and loan calculation sheet as a sample with this article. This cash flow chart is based on six months and the loan has been calculated in six instalments which can also be converted into more instalments. As soon as the cash flow chart is filled, the loan calculation sheet will automatically calculate the proposed loan amount, per month loan instalment size with flat and declined method.

Yet to com………………………

Automated Balance Sheet & Proposed Loan Ratios

Income Statement

Business Cash Flow Chart

Monitoring Sheet with Auto-Trend?