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Ask AI: Lenders bring in machines to rate credit risk of customers

The race to offer loans to customers who do not have any collateral to offer has prompted innovators to look at new sources of data on them

credit score

Do you have a low credit score? Did you miss paying your last credit card bill on time? Have there been occasions when your EMI cheques have bounced?  Worry not. You can still get a loan from one of several new-age lenders who have devised their own artificial intelligence or AI-powered algorithms to assess customers’ credit-worthiness. And in the process, they’re bringing about a sea change in the lending business. Thanks to technology, credit-worthiness is now being based not merely on traditional metrics such as the credit score of a person or a firm sourced ...