It’s no doubt that Digital Lending Apps have taken the financial world by storm. They have changed the very ecosystem of borrowing and stand out by offering unprecedented convenience and accessibility to users. But to every wonderful phenomenon, there will...
A family in need of an emergency fund to cover their medical expenses, a farmer requiring capital to purchase seeds for the season, a student hoping to pay for their education abroad, or an entrepreneur who thinks to expand his...
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In this blog, we will unravel the mystery of data submission for credit reporting by financial institutions. Think of it as our way of making this topic as exciting as finding extra fries at the bottom of your takeout bag!...
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Credit Reporting Format For Financial Institutions By The RBI Let’s decode the RBI’s credit reporting format for financial institutions. It acts as a beacon for financial entities, ensuring data integrity and streamlined operations. Access the complete documentation from here. Credit...
After smartphone penetration, people are not watching their SMS at all. They use SMS only for OTP related transactions. That’s it.
But What can a Lender see in your SMS after you consent to them?
Lender can see income, expenses, and any other Fixed Obligation like (EMIs/Credit Card).
1) Income – Parameters like Average Salary Credited, Stable Monthly inflows like Rent
2) Expenses – Average monthly debit card transactions, UPI Transactions, Monthly ATM Withdrawal Amount etc
3) Fixed Obligations – Loan payments have been made for the past few months, Credit card transactions.
It also tells the Lender the adverse incidents like
1) Missed Loan payments
2) Cheque bounces
3) Missed Bill Payments like EB, LPG gas bills.
4) POS transaction declines due to insufficient funds.
A massive chunk of data is available in our SMS (more than 700 data points), which helps Lender to make a credit decision.
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