Lenders tracking digital data may get you loan without a credit record
Banks are tracking your personal financial data to draw conclusions about your repayment capacity.
A senior official from a leading private bank said lenders are looking up salary account balance, transaction and utility bill payments, among other things. “These data points can help offer a low-ticket loan, like a personal loan or prequalified mortgage loan of say Rs 25-30 lakh,” he added.
Under the scanner
As banks have started tracking more than one source to collect information for credit scoring, customers need to be more careful of what their habits indicate about their repayment capability to a possible future lender. This calls for individuals to have a clean track record for payments. Further, any information you put up on social media, your list of friends and connections, and purchase pattern can also allow lenders to draw conclusions. Similarly, your mobile phone bill payment pattern speaks volumes about you.
Exception, not rule
Despite the advancements in this area, credit evaluation using secondary information is still at a nascent stage, says Manavjeet Singh, CEO of Rubique.com, a loan marketplace. “Only the big banks are using this method to lend to their existing customers. At the industry level, most loans are still being offered the old-school way,” he says.