NBFC Advisor

Rethinking Creditworthiness with Alternative Scoring

  • 08-Apr-2025
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With over 190 million adults in India lacking a formal credit history, traditional credit scoring models fall short.

Alternative Credit Scoring taps into digital footprints—such as rent payments, utility bills, mobile transactions, and even social behavior—to evaluate creditworthiness with greater accuracy and inclusivity.

💡 Why It Matters:

→ Broader Reach: Empowers freelancers, gig workers, and thin-file customers
→ Smarter Underwriting: Real-time insights help reduce default risks
→ Faster Processing: Tech-driven models accelerate approvals
→ Stronger Inclusion: A transformative step for India’s digital lending ecosystem

The result?
Better access for borrowers, reduced risk for lenders, and a more robust credit flow across the economy.

190 million adults lenders reduced risk borrowers access digital lending ecosystemthe result india’ transformative step tech-driven models accelerate approvals→ stronger inclusion reduce default risks→ faster processing real-time insights thin-file customers→ smarter underwriting gig workers empowers freelancers robust credit flow → broader reach 💡 inclusivity greater accuracy evaluate creditworthiness social behavior— mobile transactions utility bills rent payments digital footprints— alternative credit scoring taps traditional credit scoring models fall short formal credit history india lacking matters economy