The Consent Template CT001 finalized by the Lending Use Case Council is tailored for the underwriting of loan applications, encompassing all related product types such as credit cards and lines of credit.
Loan underwriting and Loan monitoring are two different purposes, and hence, two distinct consents should be sought for these two processes. To know more about the Code of Conduct on the same click here.
Consent Template Information - CT001
| Consent Template Information | Description | Further Explanation |
|---|---|---|
| Consent Template ID | CT001 | For Sahamati's internal records and explanation to the community |
| Status | Active | For Sahamati's internal records and explanation to the community |
| Use Case Category | Underwriting Risk | For Sahamati's internal records and explanation to the community |
| Use case | Underwriting a loan application | Loan application includes all type of credit products (secured/unsecured, long term/short team, credit line, credit card, bills discounting, receivables financing, TReDS) |
Consent Template Attributes and Values - CT001
| Consent Details (Attributes) | Values (as agreed in the Council | Rationale |
|---|---|---|
| Purpose Text | As agreed by FIUs to show to the customer: To process borrower’s (loan / credit card / credit line) application As per ReBIT: Aggregated Statement | To ensure that the purpose explains the underlying use case explicitly and is easy to understand for the customer |
| Purpose Code | 103 | In line with existing Code of Conduct PC001 |
| Purpose Code Category Name | Financial Reporting | As per ReBIT |
| FI Types | DEPOSIT, TERM_DEPOSIT, RECURRING_DEPOSIT, SIP, CP, GOVT_SECURITIES, EQUITIES, BONDS, DEBENTURES, MUTUAL_FUNDS, ETF, IDR, CIS, AIF, INVIT, REIT, GSTR1_3B | To conduct a thorough evaluation of a customer's loan application, ensuring a comprehensive assessment of their eligibility and repayment capacity. |
| Consent Types | Profile, Summary, Transactions | Profile and summary is required to do cross-validation of the customer's information (name, address, DOB, PAN, etc) with profile information as available from other sources such as bureau, PAN etc. Transaction information is required to establish the income, EMIs and capacity to repay for a customer |
| Fetch-type | One-Time | FIUs agreed that they need only one-time information for underwriting. In case of a delay in loan decisioning due to a manual process or any other reasons, in which the FIU needs updated information again, they will request the customer to give new consent for fetching their data again |
| Maximum Frequency | NA | |
| Maximum FI Data Range | 14 months | Based on business practices, 13 completed months of data are required for analyzing trends. A 14-month threshold supports this approach when consent is taken mid-month |
| Maximum Consent Validity | 1 Month | based on market feedback on the time taken for underwriting in most product types. |
| Maximum Data Life | 1 Month | based on market feedback on the time taken for underwriting in most product types. |
| Last Published on | 31st May 2024 |
Please note that the parameters of the individual consent templates in the Consent Template Library represent upper bounds for the respective use cases, as decided in the relevant User Councils. The parameters in the consent templates should be treated by participant(s) as outer limit(s) and not be construed as legal advice in any manner. Participants are encouraged to review their use case(s) and ensure compliance with applicable laws, including the RBI Master Directions on NBFC-AA and the DPDP Act.
Sahamati will publish additional consent templates as the AA ecosystem evolves based on discussions in the relevant Use Case Councils and the Fair Use Committee. Existing consent templates may also be revised based on statutory and regulatory guidance, including the DPDP Act and the Rules issued thereunder.
