Now, bots to decide eligibility criteria for a loan at lending firms

BENGALURU: Kirana store owners and cab drivers applying for a loan from fintech startup Capital Float have to answer a series of questions around their financial planning as well as their business practices, formatted by the Bengaluru-based company as a psychometric test to gauge credit-worthiness.Alternative lending startups, which do not demand collateral or use CIBIL scores like traditional banks, are using machine learning and innovative methods such as psychometric tests to ensure loans don’t sour.“The tests revolve around understanding the person’s entrepreneurial ability and attitude towards financial planning. Two-thirds of our customers are new to credit and do not have any tangible credit scores, which is why such tests help in understanding their credit-worthiness,” said cofounder Sashank Rishyasringa, adding that the company also looks at several data points such as…


Link to Full Article: Now, bots to decide eligibility criteria for a loan at lending firms

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