SMERATE is a credit rating framework developed by Surya for retail and corporate customers of a bank. SMERATE supports creation of multiple scoring models by user bank. Models can be based on quantitative and qualitative attributes and takes into account assessment practices followed at leading banks. Models can be configured for new customers and periodic evaluation of existing customers. SMERATE comes with default models to assess corporate and retail customers. Users may build new scoring models within SMERATE. New model creation does not require IT intervention. Once a new model is created, the model gets mapped based on customer type, industry or facility requested. This ensures that any new credit application will automatically get mapped to one of the models configured in SMERATE.

Rating approach adopted is one in which financial and non-financial attributes are defined, weights given to each of them with permissible range of scores or options associated with each attribute. Process adopted is, for a loan officer of a bank to rate each attribute. When the rating is complete, it generates a credit score which is then automatically mapped to credit risk grade structure of bank.

A credit workflow is available that enables bank to incorporate subjective elements in the credit evaluation process. A file with a sub-optimum score can be reviewed by risk or senior management for a case-to-case review and approval.

features at a glance

    • smerate_1
      Default scoring models configured for both retail and corporate clients.
    • smerate_2
      Users can define and store any number of scoring models specific to certain category of clients.
    • smerate_3
      Various attributes pertaining to credit worthiness can be defines as ranges or options. Weights can be assigned to attributes to weigh one attribute over the other.
    • smerate_4
      Credit work file allows to record all information right from file creation, pre-approval, to risk assessment to final disbursal. Comments and information added at each stage can be viewed along with the file.


  • smerate_help_1Replace paper based files with digital files increasing efficiency and retrievability
  • smerate_help_2Reduces the time required for loan approval process
  • smerate_help_4Brings about more objectivity in the loan approval process wherein standard underwriting principles are used for credit evaluation.


Implementation of SMERATE at FDH Bank, Malawi

First Discount House (FDH) is a wholly owned subsidiary of FDH Financial Holdings Limited and was licensed as a discount house by the Reserve Bank of Malawi on 20 July 2001. First Discount House is currently the only Discount House in Malawi. Operational since April 2002, the company has grown int…

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