New-to-credit (NTC) borrowers are increasingly becoming a large target market for both, the organized (retail) and the unorganized sector (msme). Hence, there is an ever-increasing need for leveraging alternate data for credit evaluation especially for products which have a large first-time borrower composition (viz. CD, 2W, CV Loans, Affordable Housing, PayDay Loans, Merchant Loans, Micro Business Loans, MFI Loans etc.) where conventional data is relatively weak.
SEP is a macro-economic variables-based credit score, that uses relevant variables from a wide array of public data sources, to help provide a socio-economic context based on a borrower’s residential location.
