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Loans will be disbursed based on data, says Nandan Nilekani

Nilekani said the data available in the GST system could be the basis of credit.

Press Trust of India 

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Nandan Nilekani. BS photo by Saggere Radhakrishna

on Wednesday said India was moving in a direction where lenders will use data such as the goods and services tax (GST)-based “business flows” or credit payment history, instead of collaterals to provide loans to businesses and consumers.

He said the data available in the system could be the basis of credit.

“When you file your return, you are actually filing it at the invoice level. You can then ask for the data that you can give to your lender. All 10 million businesses will have deep digital footprints that they can use to get loans from their banks or non-banking financial companies,” Nilekani said.

First Published: Thu, February 22 2018. 00:37 IST