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Underwriting

The challenge for any underwriter is to understand the following about a borrower:

  1. Intent to repay - This reflects on the behavior/personality traits/character of the person
  2. Capacity to repay - This reflects on the affluence/income of an individual/SME
  3. Stability to repay - This reflects on the stability of the capacity. In case, it is a salaried job, whether the Industry will continue to grow/CAGR %, hiring or firing rates.

Data Sutram processes data from over 250+ sources including Satellite, POS, Smartphones to be able to give intelligence on people & give more insights that can comment on their Intent, Capacity and Stability to repay the loan.

SME#

For SME, the Input data will require the following Parameters:

TypeRequirement
AddressRequired
GST IDOptional

Based on the Input Parameters, the Output Data will contain the following attributes:

ParameterFeatureDescription
GST DetailsGST TurnoverIt represents the turnover over the last financial year
GST DetailsGST Bracket IncomeGross income refers to the total income earned before taxes and other deductions which has been bracketed based on the income data which Data Sutram have at its disposal
GST DetailsGST Income FYIt signifies the Income's bracket for the last financial year
GST DetailsGST Nature of Business activityIt signifies the nature of business the merchant does as per the GST's categorization
GST DetailsGST Active StatusIt signifies the current status of the GST number
Location AttributesFootfallIt refers to the total number of people who visit that particular shop/place.
Location AttributesRentIt refers to the median rental price for a 1000 sq feet area.
Location AttributesHIG %Percentage value of High Income Group
Location AttributesMIG %Percentage value of Medium Income Group
Location AttributesLIG %Percentage value of Low Income Group
Location AttributesMarket ConcentrationNumber of Market POIs in a grid.
Location AttributesUPI Growth %Average Percentage Change with respect to the UPI transactions happening in the area.
Location AttributesTransaction Growth %Average Percentage Change with respect to the overall transactions (UPI / POS / ATM) happening in the area.
Location AttributesDelinquency %Percentage of Loans whose payments have defaulted over the last financial year
Amenities CountTotal Count Of POIsTotal Number of POIs in the grid
Amenities CountAirport CountNumber of Airports in the grid.
Amenities CountApartment Complex CountNumber of Apartment Complexes in the grid.
Amenities CountATMs CountNumber of ATMs in the grid.
Amenities CountAuto Store CountNumber of Auto Stores in the grid.
Amenities CountBank CountNumber of Banks in the grid.
Amenities CountBC Agent CountNumber of BC Agents in the grid.
Amenities CountBeauty parlor CountNumber of beauty parlors in the grid.
Amenities CountCafé CountNumber of cafes in the grid
Amenities CountClinic CountNumber of clinics in the grid
Amenities CountClothing store CountNumber of clothing stores in the grid
Amenities CountDiagnostic center CountNumber of diagnostic centers in the grid
Amenities CountEvent venue CountNumber of event venues in the grid
Amenities CountFacility CountNumber of facilities in the grid
Amenities CountFarmer market CountNumber of farmer markets in the grid
Amenities CountGarage CountNumber of garages in the grid
Amenities CountGrocery CountNumber of groceries in the grid
Amenities CountGym CountNumber of gyms in the grid
Amenities CountHospital CountNumber of hospitals in the grid
Amenities CountHospitality CountNumber of hospitality places in the grid
Amenities CountInsurance agent CountNumber of Insurance Agents in the grid
Amenities CountJewelry store CountNumber of Jewelry Stores in the grid
Amenities CountLIC agent CountNumber of LIC agents in the grid
Amenities CountLoan agency CountNumber of Loan Agencies in the grid
Amenities CountMall CountNumber of malls in the grid
Amenities CountManufacturer CountNumber of manufacturers in the grid
Amenities CountMoney transfer service CountNumber of money transfer services in the grid
Amenities CountOffice CountNumber of offices in the grid
Amenities CountOthers CountNumber of others in the grid
Amenities CountPet store CountNumber of pet stores in the grid
Amenities CountPetrol pump CountNumber of petrol pumps in the grid
Amenities CountPharmacy CountNumber of pharmacies in the grid
Amenities CountPolice station CountNumber of Police stations in the grid
Amenities CountPolitical CountNumber of political counts in the grid
Amenities CountPopular attraction CountNumber of Popular Attractions in the grid
Amenities CountReligious CountNumber of Religious Counts in the grid
Amenities CountRestaurant CountNumber of Restaurants in the grid.
Amenities CountSchool CountNumber of Schools in the grid
Amenities CountService centre CountNumber of Service Centres in the grid
Amenities CountSocial service CountNumber of Social Service Counts in the grid
Amenities CountStorage CountNumber of Storage Counts in the grid
Amenities CountStore CountNumber of Store Counts in the grid
Amenities CountTransport stop CountNumber of Transport stops in the grid
Amenities CountTravel agent CountNumber of Travel Agents in the grid
Amenities CountWholesaler CountNumber of Wholesalers in the grid.
Industry TrendsCAGR %Compounded Annual Growth Rate of the Industry in which the enterprise is working.
Industry TrendsFootfall Growth Rate %It represents the percentage change in the footfall rate.
Industry TrendsTransaction Growth Rate in Sector (%)Average Percentage Change with respect to the overall transactions in the sector
  • The above features will help to understand the characteristics of the borrower.
  • Features like Nature of Business, GST Status of the merchants, Delinquency rate help to understand the intent of the SMEs.
  • Features like GST Income, GST Turnover, Footfall trends, Market Concentration help to understand the capacity of the SMEs to repay the loan.
  • Features like Industry CAGR%, Sector and Transaction Growth trends, Rent prices help to understand the stability of the SMEs.

Individuals#

For Individuals, the Input data will require the following parameters:

  1. Integrate the Data Sutram SDK into the borrower’s phone through a lending app.

    OR

  2. Get the following information from lender about borrower:

    TypeRequirement
    Geo-coordinates (series of lat/long pairs with timestamp)Required
    SMS RecordsOptional

Based on the Input Parameters, the Output Data will contain the following attributes:

ParameterFeatureDescription
SMSAverage Bank BalanceAverage Bank Balance of the Individual per month
SMSAverage Transaction Ticket ValueAverage Transaction Value of the Individual
SMSTotal Brands shopped fromIt represents the type and number of brands the individual has shopped from
SMSSocial GraphTo understand individual’s social network on the basis of activity and spend
Geo-BehaviorHome LocationHome Location of the Individual
Geo-BehaviorWork LocationWork Location of the Individual
Geo-BehaviorBrands VisitedTypes of Brands visited
Geo-BehaviorShops VisitedTypes of Shops visited
Geo-BehaviorInterests (POI visited)Types of POIs visited based on the Interest
Location AttributesAffluenceIt refers to how affluent the area is in which the individual resides
Location AttributesRentIt refers to the median rental price for a 1000 sq feet area.
Location AttributesHIG %Percentage value of High Income Group
Location AttributesMIG %Percentage value of Medium Income Group
Location AttributesLIG %Percentage value of Low Income Group
Location AttributesMarket ConcentrationNumber of Market POIs in a grid.
Location AttributesAverage Spend %Average Value Spend by the Individual
Location AttributesTotal Transactions %Total number of transactions made by the individual.
Amenities CountAirport CountNumber of Airports in the grid.
Amenities CountApartment Complex CountNumber of Apartment Complexes in the grid.
Amenities CountATMs CountNumber of ATMs in the grid.
Amenities CountAuto Store CountNumber of Auto Stores in the grid.
Amenities CountBank CountNumber of Banks in the grid.
Amenities CountBC Agent CountNumber of BC Agents in the grid.
Amenities CountBeauty parlor CountNumber of beauty parlors in the grid.
Amenities CountCafé CountNumber of cafes in the grid
Amenities CountClinic CountNumber of clinics in the grid
Amenities CountClothing store CountNumber of clothing stores in the grid
Amenities CountDiagnostic center CountNumber of diagnostic centers in the grid
Amenities CountEvent venue CountNumber of event venues in the grid
Amenities CountFacility CountNumber of facilities in the grid
Amenities CountFarmer market CountNumber of farmer markets in the grid
Amenities CountGarage CountNumber of garages in the grid
Amenities CountGrocery CountNumber of groceries in the grid
Amenities CountGym CountNumber of gyms in the grid
Amenities CountHospital CountNumber of hospitals in the grid
Amenities CountHospitality CountNumber of hospitality places in the grid
Amenities CountInsurance agent CountNumber of Insurance Agents in the grid
Amenities CountJewelry store CountNumber of Jewelry Stores in the grid
Amenities CountLIC agent CountNumber of LIC agents in the grid
Amenities CountLoan agency CountNumber of Loan Agencies in the grid
Amenities CountMall CountNumber of malls in the grid
Amenities CountManufacturer CountNumber of manufacturers in the grid
Amenities CountMoney transfer service CountNumber of money transfer services in the grid
Amenities CountOffice CountNumber of offices in the grid
Amenities CountOthers CountNumber of others in the grid
Amenities CountPet store CountNumber of pet stores in the grid
Amenities CountPetrol pump CountNumber of petrol pumps in the grid
Amenities CountPharmacy CountNumber of pharmacies in the grid
Amenities CountPolice station CountNumber of Police stations in the grid
Amenities CountPolitical CountNumber of political counts in the grid
Amenities CountPopular attraction CountNumber of Popular Attractions in the grid
Amenities CountReligious CountNumber of Religious Counts in the grid
Amenities CountRestaurant CountNumber of Restaurants in the grid.
Amenities CountSchool CountNumber of Schools in the grid
Amenities CountService center CountNumber of Service Centers in the grid
Amenities CountSocial service CountNumber of Social Service Counts in the grid
Amenities CountStorage CountNumber of Storage Counts in the grid
Amenities CountStore CountNumber of Store Counts in the grid
Amenities CountTransport stop CountNumber of Transport stops in the grid
Amenities CountTravel agent CountNumber of Travel Agents in the grid
Amenities CountWholesaler CountNumber of Wholesalers in the grid.
  • The above attributes give an in depth analysis on the behavior of an individual.
  • These features provide an Alternative approach to India’s potential credit customer base as they have no records with traditional bureau.
  • Features like Brands walked into, shops visited and social graph help to understand the intent of the individual.
  • Features like Income, average transaction per user, average spends help to understand the capacity of the individual to repay the loan.
  • Features like monthly bank balance, work location, Rent prices help to understand the stability of the individual to repay the loan.