A borrower’s income statement tells you what they earned. It doesn’t tell you what happened to that money between the day it landed and the day the EMI was due. That gap is where most defaults start. It’s why cash flow analysis has become the backbone of credit underwriting at Precisa’s client base rather than […]
When the Account Aggregator (AA) framework launched in September 2021, the pitch was clear: verified digital data, consent-based, delivered in seconds, without a PDF in sight. For lenders who had spent years chasing borrowers for statements and checking them for alterations, it sounded like the end of a long operational problem. The reality in mid-2026 […]
Before a business loan is approved, the credit team needs to answer one core question: Can this borrower actually repay what they’re asking to borrow? Not just based on what they say their revenue is, but based on what their operating income looks like after normal business expenses are covered. The Debt Service Coverage Ratio, […]
Fixed Obligation to Income Ratio is one of the first filters a credit officer applies. Most banks set FOIR thresholds at 40–50% for salaried borrowers, while many NBFCs extend this to 50–55%, with some going higher for specific profiles, and anything above that is grounds for rejection or a restructured loan offer. The logic is […]
