Equifax partners with IFC for MFU credit score
Mumbai: Credit information company Equifax India Monday said it has partnered with International Finance Corporation (IFC), a World Bank group member, to offer micro-finance risk scores.
The score has been designed to predict the future credit behaviour of a MFI borrower, Equifax India said in a statement.
"With this, more than 6 core micro borrowers, whose credit records are available in the bureau would get a score," the release said.
Commenting on the development, its managing director and chief executive Sanjay Patel said, "As MFIs expand their products and services offering, there is an increasing need to understand consumers' credit behaviour leveraging data-driven attributes."
"This product will further expand coverage of the sector by credit bureaus and will play an important role in evaluating borrowers," Jennifer Isern, IFC manager for access to finance in South Asia, said.
The company said Equifax Micro Finance Risk Score has been modelled on the propensity of the consumer to repay the loan granted, as well as the risk associated with the consumer.