Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Pass Through Certificates (PTCs) 1.30 ACUITE BBB+ | SO | Reaffirmed -
Pass Through Certificates (PTCs) 9.47 Not Applicable | Withdrawn -
Total Outstanding 1.30 - -
Total Withdrawn 9.47 - -
 
Rating Rationale

Acuité has reaffirmed the long term rating of ‘ACUITE BBB+ (SO)’ (read as ACUITE triple B plus (Structured Obligation)) to the Rs. 1.30 Cr. Series A1 (b) PTCs issued by Vega 02 2024  (The Trust) under a securitisation transaction originated by UP MONEY LIMITED (The Originator).

Acuité has withdrawn the long term rating on the Rs. 9.47 Cr. Series A1 (a) Pass Through Certificates (PTC) without assigning any rating to the instrument, issued by Vega 02 2024  (The Trust) under a securitisation transaction originated by UP MONEY LIMITED (The Originator). The withdrawal is on account of the redemption of Series A1(a), No Dues Certificate received from the trustee and the issuer request and is in accordance with Acuite's policy on withdrawal of ratings as applicable to the respective facility/ instrument.

The PTCs backed by a pool of loans provided to individuals as Unsecured Business Loans with principal outstanding of Rs. 12.63 Cr. (including Rs. 1.58 Cr. of over collateralisation). The current pool outstanding as per the April 2025 payout stood at Rs 2.88 Cr.

The final rating is assigned based on the adherence to the structure, terms and covenants detailed in the executed trust deed, servicing agreement, legal opinion, assignment agreement, final term sheet and other documents relevant to the transaction.

About the Originator
­­­UP Money Limited (UPL) started operations in November 2014 following the acquisition of Sukhjit Finance Ltd, a company incorporated on February 6, 1995 under the Companies Act, 1956. The company’s name was changed to UP Money Ltd w.e.f. March 2, 2015. The company is promoted by Mr. Ajit Singh Chawla and Mr. Sumel Singh Chawla. UPL offers affordable financing for two-wheeler loans and micro, small & medium enterprises (MSMEs), mainly for rural livelihood advancement, with the aim to provide finance for income generating activities, socio-economic development and financial inclusion.
 
Standalone Rating of the Originator ((if rated by Acuite)
­­Acuite BBB-/Stable
 
Assessment of the Pool
­­Up Money Limited has Asset Under Management of Rs. 565.38 Cr as on Prov. March 31, 2025. The underlying pool of Rs. 12.63 Cr in current Pass Through Certificate (PTC) transaction comprises of Unsecured Business loans has been extended towards 3,052 borrowers, displaying significant granularity, with an average ticket size of Rs. 53,365, minimum ticket size of Rs. 30,000 and maximum of Rs. 70,000. The current average outstanding per borrower stands at Rs. 41,373. The pool has a healthy weighted average seasoning of 6.70 months (minimum 4 months seasoning and maximum of 12 months seasoning). Furthermore, none of the loans in the pool had gone into the Non-CURRENT bucket since origination, which are healthy signs. 92.15% of the borrowers are concentrated in Punjab followed by 4.96% in Haryana and 2.89% in Rajasthan displaying high geographical concentration. The top 10 borrowers of pool constitute 0.49% (i.e. Rs.6.18 lakhs) of the pool principal O/s.

Currently,there has been no utilisation of credit enhancement in the transaction, thus signalling healthy repayment in the transaction,the pool has amortised by 77.19 %.
 
Transaction Structure
­­­The rating for Series A1 (a) addresses the timely payment of interest on monthly payment dates and the ultimate payment of principal by the final maturity date, in accordance with the transaction documentation. The principal portion of Series A1 (b) PTCs is subordinated to Series A1 (a) PTCs. The transaction is structured at par.
 
Brief Methodology
­­Parameters considered are seasoning of the pool, pool vs portfolio, portfolio cuts, amortisation of the pool, internal cash flow modeling, legal opinion and various other documents to be verified at the time of conversion from provisional rating to final rating.
 
Legal Assessment
­­The final rating is assigned based on the fulfilment of the structure, terms and covenants detailed in the executed trust deed, servicing agreement, legal opinion, accounts agreement, assignment agreement and other documents relevant to the transaction.
 
Key Risks

Counter Party Risks
­­The pool has average ticket size of Rs. 53,365, minimum ticket size of Rs. 30,000 and maximum of Rs. 70,000. Considering the vulnerable credit profile of the borrowers, the risk of delinquencies/defaults are elevated. These risks of delinquencies are partly mitigated, considering the efficacy of the originator’s origination and monitoring procedures.
Concentration Risks
­­Since the pool is significantly granular, i.e. underlying assets in the pool are in nature of Unsecured business loans to 3,052 individual borrowers, hence the risk is significantly mitigated. The top 10 borrowers of pool constitute 0.49% (i.e. Rs. 6.18 lakhs) of the pool principal O/s.
Servicing Risks
­­There is limited track record of servicing PTCs, since this is one of the first few PTC transactions for the originator rated by Acuité.
Regulatory Risks
­­In the event of a regulatory stipulation impacting the bankruptcy remoteness of the structure, the payouts to the PTC holders may be impacted.
Prepayment Risks
­­The pool is subject to prepayment risks since rate of interest is significantly high and borrowers may be inclined to shift to low cost options (based on availability). Prepayment risks are partially mitigated by prepayment penalty levied by the company for pre-closures. In case of significant prepayments, the PTC holders will be exposed to interest rate risks, since the cash flows from prepayment will have to be deployed at lower interest rates.
Commingling Risk
­­The transaction is subject to commingling risk since there is a time gap between last collection date and transfer to payout account.
Credit Enhancements (CE)
­­The rating is based on the strength of cash flows from the selected pool of contracts; 

The credit enhancement is available to the Series A1 (b) PTCs in the form of:
i. Cash collateral of 21.92% of the pool principal; and
ii. Over collateralisation of 12.50% of the pool principal
iii. Excess Interest Spread of 4.9% of the pool principal
 
Rating Sensitivity
­
  • Collection performance of the underlying pool
  • Credit quality of the underlying borrowers
  • Decrease in cover available for PTC payouts from the credit enhancement
 
All Covenants
­­The following covenant is included in the transaction structure:
  • The Purchase Consideration to be paid by the Issuer to the Originator for purchasing the Pool is the sum of the Series A1 (a) Issue Price and Series A1 (b) Issue Price
  • In case of happening of any of the following events during the tenure of the PTCs:
  1. The Collection Efficiency in respect of the Pool is less than 95% for any 2 consecutive payouts and/or;
  2. The PAR>90 of the Pool is more than 5.00% of the Initial Principal Outstanding.
Then, 100% EIS shall be utilized to make principal payments to the Series A1 investors as long as the Series A1 PTCs are live.
 
All Assumptions
­­Acuité has arrived at a base case delinquency estimate basis its analysis of the company's historical static pool and further applied appropriate stress factors to the base loss figures to arrive at the final loss estimates. The loss estimate also consider the risk profile of the particular asset class, the borrower strata, economic risks, collection efficiency over the past several months as well as the credit quality of the originator. Acuité also has simulated the potential losses to an extent by applying sensitivity analysis.
 
Liquidity Position
Adequate
­­­The liquidity position in the transaction is adequate. The cash collateral available in the transaction amounts to 21.92 % of the pool principal. The Series A1 (b) PTC payouts will be supported by overcollateralisation of 12.50% of the  pool principal and excess interest spread (4.9% of current pool principal)
 
Outlook: Not Applicable
­
 
Key Financials - Originator
­
Particulars Unit FY25 (Prov.) FY24 (Actual)
Total Assets** Rs. Cr. 493.71 547.16
Total Income* Rs. Cr. 59.83 69.62
PAT Rs. Cr. 7.24 11.84
Net Worth Rs. Cr. 118.34 107.07
Return on Average Assets (RoAA) (%) 1.39 2.28
Return on Average Net Worth (RoNW) (%) 6.42 11.70
Total Debt/Tangible Net worth (Gearing) Times 3.07 3.99
Gross NPA (%) 2.28 1.42
Net NPA (%) 1.49 1.15
*Total income equals to Total Income net off interest expense
**Total assets adjusted to Deferred Tax liability
 
Status of disclosure of all relevant information about the Obligation being Rated
Non-public information
­
 
Any Other Factor Affecting Rating
­Not Applicable
 
Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)
Not applicable
Any Other Information
­None
 
Note on complexity levels of the rated instrument
Applicable Criteria
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Explicit Credit Enhancements: https://www.acuite.in/view-rating-criteria-49.htm
• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm
• Securitized Transactions: https://www.acuite.in/view-rating-criteria-48.htm

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
29 May 2024 Pass Through Certificate Long Term 9.47 ACUITE A- (SO ) (Assigned)
Pass Through Certificate Long Term 1.58 ACUITE BBB+ (SO ) (Assigned)
07 Mar 2024 Pass Through Certificate Long Term 9.47 ACUITE Provisional A- (SO ) (Assigned)
Pass Through Certificate Long Term 1.58 ACUITE Provisional BBB+ (SO ) (Assigned)
­

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
15 Nov 2024 Term Loan Long Term 8.14 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 2.74 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 9.20 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 1.81 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 1.89 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 2.94 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 11.25 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 2.10 ACUITE BBB- | Stable (Reaffirmed)
Cash Credit Long Term 3.75 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 13.51 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 25.00 ACUITE BBB- | Stable (Reaffirmed)
Proposed Long Term Loan Long Term 78.85 ACUITE BBB- | Stable (Reaffirmed)
Cash Credit Long Term 1.00 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 8.35 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 6.82 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 6.66 ACUITE BBB- | Stable (Reaffirmed)
Cash Credit Long Term 5.00 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 3.18 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 5.00 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 2.81 ACUITE BBB- | Stable (Reaffirmed)
22 Oct 2024 Term Loan Long Term 2.94 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Term Loan Long Term 8.14 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Term Loan Long Term 11.25 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Term Loan Long Term 9.20 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Term Loan Long Term 2.10 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Term Loan Long Term 2.81 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Term Loan Long Term 1.89 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Cash Credit Long Term 3.75 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Cash Credit Long Term 5.00 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Term Loan Long Term 1.81 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Proposed Long Term Loan Long Term 48.85 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Term Loan Long Term 8.35 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Term Loan Long Term 3.18 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Cash Credit Long Term 1.00 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Term Loan Long Term 6.82 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Term Loan Long Term 6.66 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Term Loan Long Term 2.74 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Term Loan Long Term 13.51 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Term Loan Long Term 5.00 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Term Loan Long Term 25.00 ACUITE BBB- | Stable (Reaffirmed (Positive to Stable))
Proposed Long Term Loan Long Term 30.00 ACUITE BBB- | Stable (Assigned)
25 Sep 2023 Term Loan Long Term 2.22 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Term Loan Long Term 15.77 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Term Loan Long Term 1.96 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Term Loan Long Term 1.13 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Term Loan Long Term 5.11 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Term Loan Long Term 1.86 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Term Loan Long Term 12.36 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Cash Credit Long Term 3.75 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Cash Credit Long Term 5.00 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Cash Credit Long Term 2.00 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Term Loan Long Term 4.66 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Proposed Long Term Loan Long Term 41.17 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Term Loan Long Term 12.93 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Term Loan Long Term 8.64 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Term Loan Long Term 3.06 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Term Loan Long Term 1.00 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Proposed Long Term Bank Facility Long Term 20.00 ACUITE BBB- | Positive (Assigned)
Term Loan Long Term 13.48 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Term Loan Long Term 10.00 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
Term Loan Long Term 3.90 ACUITE BBB- | Positive (Reaffirmed (Stable to Positive))
07 Nov 2022 Term Loan Long Term 0.67 ACUITE BBB- | Stable (Assigned)
Term Loan Long Term 5.00 ACUITE BBB- | Stable (Assigned)
Term Loan Long Term 15.77 ACUITE BBB- | Stable (Assigned)
Term Loan Long Term 5.24 ACUITE BBB- | Stable (Assigned)
Term Loan Long Term 1.72 ACUITE BBB- | Stable (Assigned)
Term Loan Long Term 2.05 ACUITE BBB- | Stable (Assigned)
Term Loan Long Term 7.00 ACUITE BBB- | Stable (Assigned)
Term Loan Long Term 0.93 ACUITE BBB- | Stable (Assigned)
Term Loan Long Term 6.57 ACUITE BBB- | Stable (Assigned)
Term Loan Long Term 20.00 ACUITE BBB- | Stable (Assigned)
Cash Credit Long Term 3.75 ACUITE BBB- | Stable (Assigned)
Cash Credit Long Term 5.00 ACUITE BBB- | Stable (Assigned)
Cash Credit Long Term 2.00 ACUITE BBB- | Stable (Assigned)
Term Loan Long Term 6.06 ACUITE BBB- | Stable (Assigned)
Proposed Long Term Loan Long Term 68.24 ACUITE BBB- | Stable (Assigned)

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
Not Applicable Not avl. / Not appl. Pass Through Certificate Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.30 Highly Complex ACUITE BBB+ | SO | Reaffirmed
Not Applicable Not avl. / Not appl. Pass Through Certificate Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 9.47 Highly Complex Not Applicable|Withdrawn

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