The ultimate objective is to get the least expensive loan with fewest of restrictions. Yet achieving these objectives is not easy.

Pic Credit: @mockupgraphics from Unsplash

Why is deciding on a cheap loan not easy?

Lenders are super cautious in dealing with borrowers since the first caveman loaned a spear to a friend only to have it returned in little pieces. Moreover, lenders know they have a certain power over borrowers and have turned terms and conditions into a mystery or some secret power which reveals itself in times of distress.

We take a very informed decision before taking a loan of any kind to avoid such situations. Yet we get shocked by the terms and conditions when paying EMIs becomes difficult. It happens to most of us because of the fine print. The reason…


Discreetly handle loan recovery agents
Discreetly handle loan recovery agents
Image by Asa K from Pixabay

In 2015, my next-door neighbours defaulted on a home-loan by Axis Bank. I noticed it only when the recovery agents sealed the door and pasted a notification for auctioning the property. I was surprised that the agents had been visiting the property for months, yet I never heard any ruckus over defaulting or sealing the property. This intrigued me to ask my neighbours. I found that they were aware of the entire process of recovery. It’s not every day that we see recovery agents in our neighbourhood. Recovery processes can be very discreet if one is fully aware of the…


Rating agencies have been too charitable in rewarding ratings

Photo by Caroline Hernandez on Unsplash

Credit Rating Agencies have put asset managers in a fix

After IL&FS, even DHFL has defaulted. Both were one of the biggest lenders at a point of time. None of the credit rating agencies brought down their rating to D (D is for default) until there was no other choice. In fact, neither IL&FS nor DHFL was never rated negative ever before. Lending activities had stopped months ago. The rating agencies were clearly not even signalling the market, although the fund managers knew that these two lenders were bleeding. They also failed to report impending default of Reliance Capital and Zee Group.


Photo by Edi Libedinsky on Unsplash

If you were a wealth manager or a lender analysing hundreds and thousands of narrations in bank statements every month, what would be most common data points of your interest?

  • bank transfers
  • ordinary financing
  • tax payments
  • income and spending patterns
  • recurring transactions, and
  • days of non-sufficient funds (NSF)

All play a vital role in assessing the financial health of your customers.

Identifying lenders in the bank statement is not just one small element of the large tapestry that is bank statement analysis. Before this, the bank statements must be machine-readable. Although a PDF or a scanned statement is an electronic…


Equity grows with character

Source: Dilbert

Firstly, don’t listen to me because I have not tasted any success in a startup. Although it has been a decade of working in small companies and closely following startups, I am writing this from my experience in building two ramen profitable businesses — HelloMeets and Inkredo. I would listen to this suggestion if I were in a dilemma to continue working in a startup.

I was excited in gloomy times of 2008

I was extremely excited in the last quarter of 2008 when global giants were going through bankruptcy and many developed economies were again facing a crash after it had just begun to recover from 9/11…


Photo by Samuel Zeller on Unsplash

During my conversation with friends, acquaintances and candidates applying for a job, I have come to a realisation that people have difficulty in expressing their understanding of what Inkredo is even after reading the blogs. Some people say that we are a data transformation company, some say that Inkredo is a data analytics company, or a data visualisation app while there are few who still have a perception that we’re a lending company.

At the least they have heard us and they are on the right track. But their responses make me cringe! Recently, I have realised that the reason…


Illustrative image of stats from Varchev

Risk professionals, wealth managers and underwriters are in a race against time to stay ahead of the next unfavourable market shift. The good news is that there is an overwhelming amount of data available to mitigate risk today. But the increasing volume of data also presents a challenge. Rapidly converting this structured and duplicative data, adding contextual information and running analytics in real-time is a cumbersome and time-consuming process for risk professionals who are already over-subscribed.

The prevailing belief is that the promise of the predictive power that comes with data is the most powerful edge to emerge in the…


OCRs are failing at extracting all the useful data intended for analysis from user-generated images of documents

Mobile technology is increasingly playing a pervasive role both at home and office. Companies now allow users to capture pictures of documents very conveniently through a smart phone to quickly and safely send to intended recipients for extracting useful information.

In the early 1960s, optical character recognition (OCR) was one of the first clear applications of pattern recognition, and today, for some simple tasks with clean and well formed data, document analysis is perceived as a solved problem. Unfortunately, these simple tasks do not represent the most common needs of the recipients of document image analysis. …


New fin-tech players addressing the structural issues of information asymmetry and reducing turnaround times for underwriting loans to emerging India with little or no credit history

Evolution of Indian Banking

Corporate lending caught everyone’s attention at the beginning of the 21st century and then retail lending became the flavour of the season at the turn of the decade. Banks have primarily ignored micro & small businesses for credit. Now, country’s small and medium enterprises are attracting increased focus mainly from new-age fintech companies. India is leapfrogging a couple of generations in banking. It is due to high penetration and low cost of mobile phones driving the direct shift.

Retail lending has been strongly growing and it is attributed to credit bureaus. In addition to the information provided by credit bureaus…


New-age financial institutions are increasingly financing small enterprises based on cash flows instead of any collateral

Source: Bilbo’s Random Thought Collection

When I applied for a car-loan in 2014, bank statements were unheard in the process of lending because CIBIL, Equifax, CRIF Highmark and Experian reports did the job of predicting risk just fine. And then comes the second half of 2018, there’s an entirely different sentiment among lenders: Reveal your recent banking history or be declined.

Banks generally perceive small-businesses at higher risk for lending and thus incorporate more number of checks in their processes. This is because small businesses typically do not have fixed assets that could be counted as a collateral. …

Kumar Tanmay

Building Inkredo: www.inkredo.in

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