Reimagining Credit Underwriting
with Alternate Data in India
CreditVidya’s core IP is a credit assessment algorithm based on alternative data sources to offer credit to consumers with no credit history or traditional credit score. After proving the strength of its credit score by working with some of the largest financial institutions, company has also forayed into lending in 2019.
Why Did Kalaari Invest in CreditVidya?
CreditVidya started as a SaaS business using proprietary underwriting technology to enable lending to the financially excluded citizens, typically those who lack collateral and credit history.
Their AI and ML platform—Medhas—leverages payment data, financial behavioral data, and device data stored on smartphones to help determine loan applicants’ ability and intent to repay loans. This allows lenders to make richer policy decisions, thereby reducing the overall portfolio delinquencies.
By leveraging the digital footprint of loan applicants to measure their creditworthiness, CreditVidya has reduced the cost of processing loans from about $ 2 to less than one cent.
In 2019, after showing the strength of its credit appraisal process while working with leading banks and financial institutions, CreditVidya has now started digital lending.
We are excited to participate in the growth of the digital credit ecosystem in India. We are bullish on CreditVidya’s unique offering playing a significant role in this financial inclusion journey. Read more