Equifax India Launches Graduation Score
by Shrutee K/DNS
New credit score aimed at
enabling increased individual lending
to group loan customers
Mumbai, 3rd May,
2018 – Equifax India,
registered as Equifax Credit Information Services Private Limited (ECIS), announced the launch of Graduation Score, a first of its kind in the industry.
The Graduation score assesses risk of customers who were primarily used to borrowing
as part of a group to “graduate” to taking loans as individuals. This score has
been built based on performance of group loan customers from the credit bureau
data. This score will also enable digitization of the individual lending to
group loan process within lenders. The Graduation Score from Equifax enables
primarily group loan customers to accelerate to individual loans retail loans
therefore becoming eligible for loans of higher amounts and longer tenures.
Graduation Score is a bureau
credit score developed by Equifax to enable financial institutions to lend
individual loans to customers who have primarily had group loans in the past.
The concept of group loans was originally developed to have new-to-credit
customers take loans with low EMIs to be paid as a groups and then graduate to
individual loans with higher sanctioned amounts and EMIs and a lower
probability of default.
“Financial institutions rely
on manual assessment of loan applications which require high costs and time for
evaluation,” said K M Nanaiah, Country Head, Equifax India. “Using Graduation
Score from Equifax, they can approve these loans digitally on the basis of the
customer’s probability of default on individual loans and therefore improve
risk assessment of the product. The current customer view from Graduation Score
and combined CIR supports consistent credit decisions, strong revenue
generation and profitability throughout the customer lifecycle.”
As the group loan customers
are readying themselves for repayment of higher value loans as individuals,
Graduation score will provide the much needed impetus in risk assessment.
Currently, financial institutions rely largely on manual assessment of loan
applications and bureau data of group, individual and retail loans for evaluation,
which ends up being costly and inefficient. Graduation Score enables them to
evaluate individual loans for customers that have not had individual loans in
the past and increase the amount of individual lending while they drive good
quality of credit too.
About Equifax
Equifax is a global information solutions company that
uses unique data, innovative analytics, technology and industry expertise to
power organizations and individuals around the world by transforming knowledge
into insights that help make more informed business and personal decisions.
Headquartered in Atlanta, Ga., Equifax operates or has
investments in 24 countries in North America, Central and South America, Europe
and the Asia Pacific region. It is a member of Standard & Poor's (S&P)
500® Index and its common stock is traded on the New York Stock Exchange (NYSE)
under the symbol EFX. Equifax employs 10,300 employees worldwide.
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