- Location services on mobile phones are used to establish places of work and residence.
- SMS mining helps lenders understand transactions that take place in the person’s account and helps establish patterns.
- Purchase records on e-commerce websites provide a large amount of data to be analysed.
- Social media profiling takes place where the lender scrutinises the person’s social media profiles (Facebook, LinkedIn, etc.) to establish a person’s connections
- Mobile bills helps the lender understand the behaviour of the person with regard to regularity and discipline.
- Mobile phone usage (such as frequency of accepting calls against not answering them) also helps bring to light a lot of details about the person.
You are here : Home / peer to peer lending / peer to peer lending in India / peer to peer lending platforms / Understanding your alternate credit score
Monday, 1 February 2016
Your credit score is usually your passport to getting a loan. In India however, the largest credit database only has about 300 million records in a country of 1.25 billion. If you are one of the many borrowers without a credit score or have a thin file, your chances of getting a loan are slim.
Lending institutions such as Peer-to-Peer lending websites are now looking at ways to evaluate your credit worthiness from other sources. When a borrower doesn’t have a formal credit score or has a score which does not allow him/her to receive a loan, the lender derives his/her credit worthiness based on digital data accumulated from various sources.
Many lenders derive information from data accumulated from bank statements, mobile usage, online transactions, social media, etc.
This type of credit valuation using secondary data is relatively new and is starting to gather attention slowly. At this point there are no pre-defined formulas that lenders can automatically use. Without any credit score, banks and other NBFCs never give out loans.
With growth in Peer-to-Peer lending, the concept of providing loans without a credit score provided is becoming more accepted as Peer-to-Peer websites are providing their own valuation of the person’s credit worthiness.
Therefore, even for a person with a low credit score or one who does not have one altogether, getting a loan is not absolutely impossible thanks to alternative methods of understanding a person’s credit worthiness which is becoming more and more popular among Peer-to-Peer lenders.
For more details about peer-to-peer lending please visit https://www.rupaiyaexchange.com/What-is-P2P-Lending
About Rohan Hazrati
Rohan is the Founder of the Peer-to-Peer lending platform Rupaiyaexchange.
Subscribe via email
Like the post above? Please subscribe to the latest posts directly via email.
What is P2P?
- alternative finance
- bank rate cuts
- benefits for investment
- Bond Market
- CC limits
- consumer loans
- corporate tax rate
- demonetisation impact
- digital India
- digital transactions
- digital wallets
- expectation from budget 2017
- fight against corruption and terrorism
- fintech startups after demonetisation
- GST 4 Slab Structure
- GST bill
- GST tax slabs
- Interest Rate
- Investment options
- Investment plans
- Money Manager
- Mutual Funds
- narendra modi
- narendra modi speech for corruption
- OD limits
- p2p lending
- p2p lending in India
- P2P Loans in India
- pay day loans
- payday loans
- peer to peer lending
- peer to peer lending in India
- peer to peer lending platforms
- Peer to Peer Lending. Plastic currency
- Rs 500 and Rs 1000 banned
- rupaiya exchange
- Short term credit mismatch
- short term loans
- stock market
- surgical strikes on black money
- Union budget 2017
- VAT implementation
- VAT on alcohol
- VAT on food
- why demonetisation
- A Way of Helping – Medical Emergency Loans
- Pay Day loans
- Gold vs. Peer-to-Peer Lending
- Real Estate vs. Peer-to-Peer Lending
- Stocks vs. Peer-to-Peer Lending
- Recession Friendly Investments
- Why Peer-to-Peer Lending is here to stay
- Role of technology in alternate finance: Part 2
- Role of technology in alternative finance - Part 1...
- Why is P2P Lending becoming more popular with inve...
- Entrepreneurs: Peer-to-Peer Lending vs. Crowdfundi...
- Risk and rewards can be inversely proportional - S...
- Four predictions for P2P Lending in 2016 for India...
- Route to Alternative Financing
- Start-ups turn to P2P Lending
- What does P2P lending Advocate?
- Understanding your alternate credit score
- ▼ February (17)