EWS signal policy

Why we score

Most loans that roll into 30+ DPD show trouble weeks before the instalment is missed: the vehicle stops running, the insurance lapses, the borrower takes new loans elsewhere. The early-warning system (EWS) reads those signals every night and gives every loan a score from 0 to 100, so collections can call before the bucket moves rather than after.

How the score is built

• Each signal has fixed points. The score is the sum of the points of every active signal, held between 0 and 100.
• A signal is active if it was observed in the last 90 days. Older observations drop out on their own.
• Each signal counts once, except NACH bounces (R1, 10 each, up to 20) and DPD bucket rolls (R4, 15 each, up to 30).
• FASTag trips down (U1) and no FASTag crossing (U2) never add up: the higher of the two counts.
• Mitigation M1 takes off 15 points when GPS running hours are steady or up while FASTag trips fall. That pattern is a route change, not a parked vehicle (see KB-027).

The families are repayment (R1 to R6), vehicle use (U1 to U5, M1), vehicle compliance (C1 to C6), borrower (B1 to B5), environment (E1 to E4) and clusters (K1, K2). The full table, with the rule and points for every code, is in the EWS module under "Signal catalogue".

Bands and what we do

Rules for the team

1. Read the "why this score" panel before calling. Open with the fact, not the score: "Your tippers have not crossed a toll plaza since 18 Sep."
2. An RC transfer request without our NOC (C6) or a cancelled mandate (R2) is always urgent, whatever the band. See KB-022 and KB-011.
3. Do not repossess on the score alone. Repossession follows KB-006 and the conduct rules in KB-024.
4. If you think a signal is wrong, log it on the case with your evidence. Credit Risk reviews false alarms monthly.

Review

Points and thresholds are reviewed every six months against the loans that actually rolled. The last review found that 80% of loans that rolled into 30+ DPD between April and September 2026 had reached Watch or Critical first, with a median of 41 days' warning.