Credit information company, Equifax Credit Information Services, on Thursday launched two new products — Risk Score for retail consumers, and Portfolio Review for institutions.
Risk Score is designed to predict the likelihood of a customer defaulting (that is, go 90 days past the due date for repayment) over the next 12-month period.
Customers are given scores on attributes such as addresses, income, number of credit cards, nature of existing loans — secured or unsecured — and so on.
Individual customers can access their risk score and report for Rs 400. For an annual fee of Rs 1,000, customers can get four reports in a year.
While the practice of monitoring individual risk scores and credit reports regularly is prevalent in the West, it is yet to catch on India, said Mr Samir Bhatia, CEO and MD, Equifax Credit Information Services.
For new borrowers too
The score is available not only for customers who have credit history, but even for new borrowers. “For new borrowers we give the score based on demographic profile, locality profile, information on their jobs, and so on,” Mr Bhatia said.
CIBIL, the first credit bureau set up in India, charges Rs 450 for an individual credit score, but does not offer the score for new borrowers.
The Portfolio Review services will help banks and financial institutions review trends and borrowers' repayment patterns in specific portfolios such as credit card, and so on.
Equifax currently has over 230 members and 14 crore records. priyan@thehindu.co.in