Incentive Structure for LOs
Period: January’25
3 Key Performance Indicators
1. Net CE% Improvement
2. 31 to 90 DPD – EMI collections
3. Disbursement
1
1
LO - Incentive per Paid Borrower on overall Net
CE%
Weekly
Net CE Improved by end of the month
CE %
Bucket -1% to >=0% >1% >2%
-0.50% >0.5% >1.5% >2.5% >3% >4% >5% >6%
Starting <-1% <- to to to >7%
to <0% to 1% to 2% to 3% to 4% to 5% to 6% to 7%
of the 0.51% 0.50% 1.5% 2.5%
month
>=99% 7.00 10.50 15.00 17.50 18.00 - - - - - - - - -
95% to
6.00 9.00 12.50 15.50 15.75 16.00 16.25 16.50 16.75 17.00 17.50 - - -
<99%
90% to 15.00
5.00 7.50 10.00 12.50 12.75 13.00 13.25 13.50 13.75 14.00 14.25 14.50 14.75
<95% *
Monthly
11.00
<90% 1.00 3.00 5.00 6.50 Net CE Improved
6.75 7.00 by end
7.25 7.50of the
8.00month
8.50 9.00 9.50 10.00
*
CE %
Bucket -1% to >=0% >1% >2%
-0.50% >0.5% >1.5% >2.5% >3% >4% >5% >6%
Starting <-1% <- to to to >7%
to <0% to 1% to 2% to 3% to 4% to 5% to 6% to 7%
of the 0.51% 0.50% 1.5% 2.5%
month
>=95% 3.00 5.00 7.00 9.00 9.25 9.50 9.75 10.00 10.25 10.50 11.00 - - -
90% to
2.00 3.50 5.00 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 *
95%
85% to
1.00 2.00 3.00 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 2*
90%
Disincentive of Rs. 100 per borrower for Non * Pro-rata Incentive to be paid
2 LO - 31 to 90 DPD Base incentive per Borrower
From From
EMIs
31 to 60 61 to 90
Collected
DPD DPD
Booster
1 EMI 200 250 Rs. 100 additional incentive
3
per Borrower.
2 EMIs 350 450 Borrower not paid in last month
but collected this month (Minimum
1 EMI)
>=3 EMIs 600 800
Penalty
Disincentive of Rs. 100 for borrowers
• From 1 to 30 DPD to 31 to 60 DPD
• From 61 to 90 DPD to >90 DPD
Note : 1 EMI = 4 EWIs for Weekly
3
LD Incentive for LO
LDs Incentive
Disbursed per LD
11 to 15 25
4
16 to 20 50
21 to 25 75
> 25 100
4
Disincentive for LUC
LUC Completion %
Amount
(As per Policy)
90% to <95% -300
<90% -500
Proper LUC to be done along with Picture
verification and same will be considered for
incentive calculations
5
Tipped over with in 365 days from Disbursement date – Loan Officer
5 Claw back of incentive to be made i.e incentive paid to staff at the time of sourcing
as a part of approved incentive structure for the month to be clawed back if the
staff is in the same branch. In-case the sourcing staff is not available in the
system/branch, the case to be analysed and if the servicing staff is found
responsible then appropriate penalty mechanism to be imposed equivalent to the
clawback incentive.
During the review, in case it is found that staff is accountable for such scenario
then basis the finding and as per the HR policy, specific disciplinary action against
the staff to be initiated.
6
Mentor Loan Officer Incentive – Loan Officer
6 The Mentor LO will qualify for an incentive of Rs. 500 if the TLO they have
mentored are retained for 90 days from their joining date.
7
Incentives for Staff Transfer / Deputation during the month
Transfer Staff Incentive:
If any staff transferred during the month, last month base incentive or current month performance
incentive will be paid in whichever is higher basis for one month. Source data for transfer details will
be considered basis Adrenalin data from HR.
Deputation Staff Incentive:
If any staff sent on deputation, average of last 2 months base incentive or current month performance
incentive will be paid in whichever is higher basis for 2 months. Deputation staff details to be sent to
HO Incentives team by the respective SVPs on or before 20th of the month.
8
Minimum Incentive for Loan Officer
Rs. 1,500 *
minimum incentive
* LO should have Minimum 100 case load and >10 days attendance
9
Disciplinary Cases – Loan Officers
7
If an employee’s behaviour is not aligned with fair interaction practices
(Proved behavioural complaints), 10% clawback on their total incentive
earned for the month of complaint proved
Base Incentive = (1 + 2 + 3 + 4 + 5 + 6 + 7 )
Maximum Incentive cap on Base Incentive + Nidhi Incentive
will be 50,000/-
Campaigns incentive will be over and above Base Incentive
10
