“Applicants, Co-Applicants, Guarantors (collectively called as “Borrower/s”) on the loan facility are hereby informed that the Micro Green Housing Finance Private Limited (“MGHF”) has the following approach and considers following factors for assessing gradation of risks for each Borrower :

1. Applicable interest rate for each loan account will vary by taking into consideration multiple factors such as loan amount, type of asset, product type, tenure, profile of the borrower, loan to value ratio, past repayment track record, fixed income to obligation ratio, and basis income eligibility program.
2. Home loan will have lower risk profile as compared to loan against property. Similarly, high credit score represents good credit worthiness of customer and repayment capability and hence will be graded lowest in terms of risk.
3. Risk grading will also be dependent on the type of collateral mortgaged with the company.
4. The LTV Ratio, also known as the loan to value ratio, is the percentage of the loan amount issued to the property’s market value. The LTV ratio represents the maximum loan amount offered to the applicant. Thus, a high LTV ratio will result in high risk to the company.
5. Company may examine monthly income when determining the interest rate on your loan. The higher your income, the better your loan eligibility. Co-applicant income and other sources of income can be clubbed to arrive at final calculation.
6. Debt-to-income ratio demonstrates customer capacity to repay new obligations. If EMIs consume a considerable portion of monthly income, it will be classified as a high-risk borrower.