Archive · 17 Sep 2025
India Moves Beyond Traditional Credit Scores for Financial Inclusion
The government wants to make it easier for people who have never borrowed money before to get loans, even if they don't have a credit history.
This means that things like how regularly people pay their bills or their job history will also be considered.
New technology helps by using digital records like how people spend money and if they pay rent on time to decide if they can get a loan.
This could help many more people get access to credit and help India's economy grow by giving everyone the chance to build a credit history.
Finance Ministry says first-time borrowers shouldn't be denied credit due to no credit history.
Millions of Indians lack credit history, hindering access to loans.
Lenders can assess financial discipline through digital transactions like UPI payments.
Alternative credit assessment includes employment history and utility payments.
Inclusive credit systems are crucial for India's $10 trillion GDP target by 2047.
- Who
- Finance Ministry
- What
- States that first-time borrowers should not be denied credit for lacking a credit history
- When
- Recently
- Where
- Not specified
- Why
- To promote financial inclusion and economic growth
- Focus
- Alternative credit scoring
- Ministry Stance
- First-time borrowers should not be denied credit due to lack of credit history
- Percentage with Low Score
- Nearly 30% of Indians aged 21-30 have a score below 650
- Data Source
- TransUnion CIBIL report, NPCI, FACE Report
- Alternative Data Examples
- Digital transactions, utility payments, employment history
- Gig Economy Forecast
- Nearly 62 million Indians may be in the gig economy by 2047
