back Back

U GRO Capital seeks patent for its score-card based underwriting model

By Edil Corneille

January 06, 2021

  • India
  • U Gro Capital
Share

U GRO Capital, India, Mumbai, technology, platform, patent, score-card, underwriting U GRO Capital, a BSE listed, small business lending FinTech platform, today announced that it has filed an application with the Indian Patent Office for its distinguished methods and systems for modelling scorecards. This has allowed the company to penetrate in a highly unstructured segment, which is driven by physical processes. The model tackles the unavailability of appropriate MSME database, by utilizing its unique classification technique leveraging the proprietary knowledge base and strength of statistical models.

The distinctive underwriting model generates credit score cards customized to suit the peculiarities and nuances of business enterprises. This is done by analysing the historical loan delinquency patterns and cash flow within each selected business segment. The model’s utility is not restricted to businesses, as it enables effective underwriting of individual borrowers, as well. Further, it facilitates trade financing by providing an assessment of downstream and upstream counterparties. Also, it provides a basis for revenue sharing in co-lending arrangements and helps estimate first loss guarantees in the securitization of transactions by providing an assessment of the underlying pool.

U GRO Capital has been using this model since its inception in 2018. The company has made disbursals of INR 17 billion in the form of secured and unsecured loans. This model is tested to predict superior predictable defaults and improve the GNPA and NNPA levels and also improve the bureau defined predictable defaults of different score level. Going forward, the company aims to target 250,000 SME and MSMEs and extend loans amounting to over INR 300 billion in the coming 4 financial years.

The proprietary statistical scorecards for assessment at various stages have been developed in consultations with CRIF and CRISIL market experts. The model is able to approve credit for business enterprises within minutes. Furthermore, it allows scope for progressive refinement and upgradation such that a newly identified data parameter/ variable can be integrated to derive more accurate output. The distinguished model combined with the organization’s technological capabilities in artificial intelligence and machine learning has rendered the credit access journey in a quick and highly convenient manner.

Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital stated, “The MSME sector is a significant driver of the Indian economy, yet only 16% of MSMEs in India receive formal credit. A major hindrance to the credit access is the limited availability of structured data pertinent to the MSME sector. We believe that MSME financing in India is at the verge of transformation with the combination of GST, Banking Data and emergence of digital infrastructure which is underpinning this transformation. U GRO Capital’s scorecard based underwriting model lies at the centre of our mission to solve the unsolved credit gap of the SMEs. The underlying methods and system are the convergence of our deep sectoral knowledge base and our analytics capabilities. Our distinctive underwriting model compliments the digitalized processes, to provide a quick and convenient access of credit to our MSME customers.”

Previous Article

January 06, 2021

Divvy raises $165mn in Series D funding at a valuation of $1.6 bn

Read More
Next Article

January 06, 2021

MX partners with Hydrogen to power the future of FinTech and Embedded finance

Read More






IBSi Daily News Analysis

Data privacy

July 16, 2024

India

Rise in sophisticated attacks, state-level threats, and increased ransom DDoS Incidents

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

Paycorp expands embedded business funding service to the UK

Read More

Today

Mexican FinTech OCN raises $86m in Series A

Read More

July 12, 2024

Fair4All Finance and ClearScore partner on debt consolidation technology

Read More

Related Reports

Sales League Table Report 2024
Know More
Global Digital Banking Vendor & Landscape Report Q2 2024
Know More
NextGen WealthTech: The Trends To Shape The Future Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2024