Lender Credit Due Diligence Using MCA Data - NBFC & Bank Workflow

Bank and NBFC credit teams all start somewhere similar when a new proposal lands - MCA master data before CMA, public record before site visit. It's not the whole appraisal, but it's the filter that catches struck-off borrowers and stale filings before you waste a RM's week on field investigation.

Step 1: Entity identity and status

1. Pull master data by CIN - confirm Active status
2. Verify legal name matches loan application and GST registration
3. Note incorporation date, paid-up capital, company category
4. Check registered office against site visit address

Hard stop on non-Active status. Use master data guide for field meanings and CIN verification for lookup steps.

Step 2: Filing compliance screen

1. Review filing history for AOC-4 - latest financial year filed?
2. Check MGT-7 for current shareholding snapshot
3. Compare against annual filing calendar
4. Flag gaps, late filings, or missing years per credit policy

Run the MCA red flags screen here - this step eliminates a surprising number of proposals early.

Step 3: Charge and security mapping

1. Pull index of charges from master data / V3 view
2. List existing secured lenders, charge amounts, and creation dates
3. Compare charge amounts to borrowings on latest AOC-4 balance sheet
4. Assess whether your proposed security ranks pari passu or subordinate

Step 4: Director and promoter verification

1. Verify DIN of all directors - active status and KYC current
2. Map promoter's other directorships via DIN lookup
3. Check for disqualification or deactivated DINs
4. Compare MGT-7 shareholding against declared promoter stake in CMA

Step 5: Public financials and ratios

1. Download latest AOC-4 or read parsed financials on Infyner
2. Compute key ratios - current ratio, D/E, receivable days
3. Cross-check against CMA projections for material variances
4. Read auditor report for qualifications - see balance sheet DD guide

Step 6: Document and escalate

Screenshot MCA findings with date. Log red flags in credit memo. Escalate per policy - some findings need RM explanation, others are automatic declines. For vendor-side parallels (not lending but same data), see vendor checklist.

Common questions