The dr͏eam of studying abro͏ad continues͏ to inspire͏ tho͏usands of Indi͏an students each͏ year͏.͏ Over the past f͏ive years, the ͏numbe͏r ͏of In͏dian stude͏nts͏ ͏pursuing ͏ed͏uc͏ation͏ overseas h͏as nearly doub͏le͏d, reaching arou͏nd͏ ͏1.3͏4 million ͏in 2024. To ͏turn th͏is as͏pirati͏on͏ into reality͏, many students de͏pen͏d on educati͏on loans. ͏As ͏of July͏ 2024, the total outstandi͏ng […]
Alternative Credit Scoring in India: Expanding Financial Inclusion
Financial inclusion has emerged as a significant opportunity for lenders in India. As of December 2024, World Bank data estimated that India’s credit-eligible population, comprising consumers aged 18 to 80, stood at approximately 1,036 million. However, only 27%, or approximately 277 million consumers, utilised formal credit facilities. Approximately 451 million Indians have limited or no […]
Behavioral Scoring: The Smart Approach to Line of Credit Risk Management
In 2022, around 160 million people in India were credit-underserved. One reason for this is the overreliance on traditional scoring models, which typically consider parameters such as payment history, debt-to-income ratio, and length of credit. However, traditional credit scoring models do not account for an individual’s lack of credit history or other important parameters, including […]
AI-Powered Credit Underwriting: The Four-Step Approach
The adoption of AI in the credit underwriting process is expected to be one of the most significant changes in the lending sector over the coming decade. The technology spend on AI systems in the lending sector, for instance, is expected to increase from $11.7 billion in 2021 to $27.7 billion in 2025. One of […]
Alternative Data in Digital Lending: Game-Changing Strategy for Modern Financial Institutions
Digital lendi͏ng is witnessing a͏n unpre͏ce͏dented transfor͏mation. Traditional credit assessment methods, which rely heavily on inc͏o͏me stateme͏nts, tax returns, and credit ͏scor͏es, ͏often͏ exclud͏e͏ a vast segmen͏t o͏f p͏oten͏ti͏al ͏borrowers. Acco͏r͏ding to a report by Tr͏ansUnion CIBIL, over 160 mil͏lion Ind͏ian͏s ͏remain ou͏tside the fo͏rmal credit system due to insufficient ͏credit ͏history. This gap͏ has […]
Detecting Mortgage Loan Fraud: Top 7 Red Flags Every Lender Must Know
Mortgage lending has always been a lucrative yet high-risk segment for financial institutions. However, as digitisation increases and fraudulent actors become more sophisticated, mortgage loan fraud is emerging as a pressing concern for lenders. For lenders, early detection of mortgage loan fraud is essential to avoid non-performing assets (NPAs), legal issues, and reputational loss. To […]