How Machine Learning Supports Credit Profiling

22 July 2019
How Machine Learning Supports Credit Profiling

         

Machine learning provides systems with the ability to automatically learn and improve from applied experience without being explicitly programmed for that. Based on certain patterns, it judges whether a borrower is credit-worthy or not and regulates the process of loan decisioning engine.          

         

So Artificial Intelligence may help you make credit decisions at scale but it is Machine Learning that helps improve algorithms and ensure that you are one step ahead of the industry in understanding credit and market patterns.          

         

Here are few platforms which offer help in credit analysis.         

         

CoinTribe
CoinTribe is the only online lending platform which has back-tested its credit model with large banks. As a leading online loan disbursement platform, it provides quick and easy collateral-free loans to small businesses and individuals. The marketplace model facilitates loan origination and credit assessment through CoinTribe before it is shared with the banks.          

         

PaaS (Platform as a Service) enables banks and NBFCs to utilize CoinTribe’s platform for effective risk analysis and recommendations to digitally underwrite their own consumers. CoinTribe’s PaaS is equipping lenders across the country to become digital-ready and enhance the efficiency of their lending process.         

         

Aye Finance
Aye Finance is one such commercial institution built around the mission to solve these challenges of funding MSMEs and enabling their inclusion into the economy mainstream.          

Aye Finance differentiates itself by creating a technically enabled process that builds credit insights through a variety of available business and behavioral data. This effective credit appraisal coupled with the use of modern workflow automation and a small but engaged workforce is helping bridge the gap between the MSMEs and organized lending.       

       

Satya MicroCapital
Satya MicroCapital is an NBFC-MFI serving low-income entrepreneurs in India’s rural and urban areas. The firm provides prompt, convenient and affordable collateral-free credit to unbanked and under-served people through a strong credit assessment and centralized approval system.       

Happy Loans
Happy Loans assesses over 1000 variables about the merchant to underwrite his micro business. Its credit model is based on the merchant’s level of business engagement with the partner, his behavior towards borrowing, APIs, demographics & business trends. 

Promising a unique borrowing experience to Indians, Happy Loans provides customized loan offerings to microenterprise owners to meet their specific demands. It even offers micro business loans that start at as low as Rs. 2,000 for durations as short as 30 days.       

MoneyTap
MoneyTap is India’s first app-based consumer credit line, where “credit line” means that the bank will issue a limit of up to Rs. 5 Lakh, without any collateral or charging any interest.

Against this limit, using the MoneyTap app, consumers can borrow as little as Rs. 3,000 or as much as Rs. 5 Lakh and repay it as EMIs from 2 months to 3 years. The app securely connects with banking systems to give them not only instant approval but also a credit limit, depending on the individual credit history.

                 

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