"You are being watched."
No. This statement doesn’t refer to a warning that a fictional television show starts with. A new metric to track a person’s financial credibility — social worth — is taking shape. At the helm of utilising this metric is EarlySalary.com — a non-banking finance company (NBFC) — which doles out loans of up to Rs 1 lakh to salaried professionals, especially first-time applicants who find it hard to find lenders willing to disburse quick loans or even issue a credit card.
What is Social Worth?
EarlySalary homes in on a loan amount to be disbursed to a borrower on the basis of his activity on Facebook and LinkedIn. The NBFC has deployed an algorithm that takes in to account about 4,000 data variables from the applicant’s social media profiles. The variables include details like which schools and colleges the applicant attended, the organisation that the applicant is employed with and her location.
Co-founder and Chief Executive Akshay Mehrotra stresses that EarlySalary’s loan disbursal process happens with minimum human interference and in a speedy manner. “First-time borrowers can avail loans in less than an hour on EarlySalary platform. The idea was to help those faced with mid-month and month-end cash crunch,” he says.
The algorithm also tracks the social circle — friends, peers and colleagues — to establish the applicant’s credibility and creditworthiness, Mehrotra says. “It is not easy to lie about particulars like education and workplace on social media.”
Rajiv Raj, co-founder of CreditVidya, a portal that educates customers on managing finances and provides credit counseling, echoes Mehrotra’s views. “Going forward digital banking will make greater inroads in India. In Big Data, you have so many data variables that help you profile a customer. Hence, the probability of fudging data on social networks or other digital mediums becomes hard,” Raj says.
Calculation of a person’s social worth also factors in other variables like geo-positioning — data on how many people have taken loans in the area the application was made in and the repayment capacity of the group which has secured loans can enhance or lower the amount of loans.
When people transact online — bill payments, utility payments, transferring funds, etc. — several data profiles are created. “These data profiles help estimate the life style index of a person in a given area,” says Raj. Features on mobile phones like geo-tagging also help track a person’s activity which also plays a part in assessing the creditworthiness of a person, he adds.
It is Legit
By the dint of being an RBI-registered NBFC, EarlySalary loanees get a CIBIL score once they transact on the platform. A good credit score can then boost borrowers’ chances of getting other loans or credit card, says Mehrotra
EarlySalary is operational in Pune, Chennai and Bengaluru and plans to expand to other cities going forward. Within 90 days of being operational the platform has disbursed over 1,000 loans, says Mehrotra. “Average ticket size (for loans disbursed so far) is Rs 22,000, while the tenure is 22 days and the average age of borrowers is 26 years,” he says.
“The penalty in case of delay is Rs 500 on an average. Currently, all customers have paid within the repayment window to our delight,” he adds.
Also, applicants need to be salaried professionals drawing a take-home pay of Rs 30,000 to avail loans from EarlySalary. The platform charges an interest of less than Rs 9 per Rs 10000 a day. For example: A 10-day loan worth Rs 10,000 would fetch an interest of Rs 82.
Author :- http://www.moneycontrol.com/
Reposted By :- http://www.credit4loan.com/
No. This statement doesn’t refer to a warning that a fictional television show starts with. A new metric to track a person’s financial credibility — social worth — is taking shape. At the helm of utilising this metric is EarlySalary.com — a non-banking finance company (NBFC) — which doles out loans of up to Rs 1 lakh to salaried professionals, especially first-time applicants who find it hard to find lenders willing to disburse quick loans or even issue a credit card.
What is Social Worth?
EarlySalary homes in on a loan amount to be disbursed to a borrower on the basis of his activity on Facebook and LinkedIn. The NBFC has deployed an algorithm that takes in to account about 4,000 data variables from the applicant’s social media profiles. The variables include details like which schools and colleges the applicant attended, the organisation that the applicant is employed with and her location.
Co-founder and Chief Executive Akshay Mehrotra stresses that EarlySalary’s loan disbursal process happens with minimum human interference and in a speedy manner. “First-time borrowers can avail loans in less than an hour on EarlySalary platform. The idea was to help those faced with mid-month and month-end cash crunch,” he says.
The algorithm also tracks the social circle — friends, peers and colleagues — to establish the applicant’s credibility and creditworthiness, Mehrotra says. “It is not easy to lie about particulars like education and workplace on social media.”
Rajiv Raj, co-founder of CreditVidya, a portal that educates customers on managing finances and provides credit counseling, echoes Mehrotra’s views. “Going forward digital banking will make greater inroads in India. In Big Data, you have so many data variables that help you profile a customer. Hence, the probability of fudging data on social networks or other digital mediums becomes hard,” Raj says.
Calculation of a person’s social worth also factors in other variables like geo-positioning — data on how many people have taken loans in the area the application was made in and the repayment capacity of the group which has secured loans can enhance or lower the amount of loans.
When people transact online — bill payments, utility payments, transferring funds, etc. — several data profiles are created. “These data profiles help estimate the life style index of a person in a given area,” says Raj. Features on mobile phones like geo-tagging also help track a person’s activity which also plays a part in assessing the creditworthiness of a person, he adds.
It is Legit
By the dint of being an RBI-registered NBFC, EarlySalary loanees get a CIBIL score once they transact on the platform. A good credit score can then boost borrowers’ chances of getting other loans or credit card, says Mehrotra
EarlySalary is operational in Pune, Chennai and Bengaluru and plans to expand to other cities going forward. Within 90 days of being operational the platform has disbursed over 1,000 loans, says Mehrotra. “Average ticket size (for loans disbursed so far) is Rs 22,000, while the tenure is 22 days and the average age of borrowers is 26 years,” he says.
“The penalty in case of delay is Rs 500 on an average. Currently, all customers have paid within the repayment window to our delight,” he adds.
Also, applicants need to be salaried professionals drawing a take-home pay of Rs 30,000 to avail loans from EarlySalary. The platform charges an interest of less than Rs 9 per Rs 10000 a day. For example: A 10-day loan worth Rs 10,000 would fetch an interest of Rs 82.
Author :- http://www.moneycontrol.com/
Reposted By :- http://www.credit4loan.com/
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