For providing an alternate credit score to borrowers in the industry, CASHe Is providing an alternate AI-based credit score to its customers. The Social Loan Quotient is to gauge the creditworthiness of the borrower and to extend credit to them. It uses a lot of alternate sources to decipher the customer's creditworthiness and ability to repay back the debt.
SLQ uses a mobile, behavioral and social database of the borrowers to gauge their creditworthiness and to judge their ability to repay their loans. For the millennial population, CASHe has become the go-to source for obtaining credit and loan options. According to the inventors of the SLQ score, it represents a borrower's willingness to pay back the loan that they have borrowed from any lender. The SQL score ranges from 0-995.
A score that is nearer to 995 and is higher than the other represents that the borrower will repay the loan as per the terms and conditions as agreed and as per the tenure of the loan. In short, this indicates a lower propensity to default in the case of a borrower.
SLQ has been used with the traditional scoring tools to identify the borrowers that are having high default rates. The experiment is very successful as it helps to identify the good and bad borrowers for any organization. The SLQ uses the traditional factors whereas the other tools use traditional factors to analyze the creditworthiness and the capacity of the borrower to repay the debt.
Also Read: What is CASHe Personal Loan?