Lesson 2 · Practitioner · Both · 16 min
Underwriting, Bureau, CAM & Pricing
Connect bureau signals, analytical CAM memos, and pricing into a coherent credit decision — including deviations and covenants.
Objectives
- ▸Explain bureau use in retail vs MSME underwriting
- ▸Describe what a CAM contains and why it exists
- ▸Separate risk-based pricing from marketing rate cards
- ▸Use covenants and deviations as controlled exceptions
Credit underwriting estimates ability and willingness to repay, then structures exposure (limit, tenor, collateral, covenants) to keep losses within appetite. Retail PL leans on bureau + income surrogates + fraud. MSME adds financials, GST, banking, and buyer/supplier concentration — especially in SCF where debtor quality can dominate obligor quality.
Key terms
UnderwritingBureauCAMRisk-based pricingAPRCovenantDeviationAdvance ratioDOA