Loan portfolio review tests loan-book information, underwriting evidence, repayments and classifications against the defined review criteria.
Understanding NBFC Loan Portfolio Audit
When to consider this service
Promoters, regulated businesses and compliance leaders assessing an activity-specific regulatory requirement can use this service to clarify a particular issue. A useful starting question is: “Why reconcile the loan tape before analysing credit risk?” Begin with the facts behind that question rather than assuming that a standard package will resolve it.
Scope of work
The engagement can cover the following workstreams. The proposal specifies which apply to your matter and what evidence or specialist input is needed.
- Assess portfolio data and selected loan files.
- Review repayment and delinquency reconciliations.
- Analyse documentation and concentration exceptions.
Documents and information to prepare
Start with the records below where available. They help establish the facts before a more specific checklist is agreed.
- Loan tapes.
- Credit files.
- Repayment schedules.
- Collection data.
Provide the relevant entity, transaction or reporting period and any existing notice or deadline. Identify missing or inconsistent records so they can be addressed explicitly.
A key issue to resolve
Reported portfolio balances need reconciliation with underlying accounts; data quality affects every subsequent risk analysis.
How the engagement works
- Define the question: assess portfolio data and selected loan files, using the available loan tapes and the facts you provide.
- Examine the evidence: review repayment and delinquency reconciliations. Record unresolved information and the assumptions that affect the analysis.
- Agree the action: analyse documentation and concentration exceptions. Set the required deliverables, responsible owners and any follow-up or external dependency.
Deliverables, fees and timing
The proposal for NBFC Loan Portfolio Audit sets out the analysis, documentation or coordination deliverables and the work you retain. The availability of loan tapes, credit files, repayment schedules and collection data affects readiness and the amount of follow-up needed. Fees and the working schedule are agreed after that initial assessment. Any required independent report, legal representation or authority application is identified as a separate responsibility where relevant.
Official resources
Use these official resources for the relevant framework. Application to a particular entity, period or jurisdiction requires a separate assessment.
Discuss your requirement
Share a short summary of your NBFC Loan Portfolio Audit requirement and the records already available. BIATConsultant can assess the proposed scope and explain the next steps.
FAQ
Practical questions about NBFC Loan Portfolio Audit.
Why reconcile the loan tape before analysing credit risk?
Reported portfolio balances need reconciliation with underlying accounts; data quality affects every subsequent risk analysis.
What records should I prepare for NBFC Loan Portfolio Audit?
What can the scope of NBFC Loan Portfolio Audit include?
How are fees and the schedule agreed?