The Account Aggregator (AA) framework was built to solve a real problem. Borrowers no longer need to collect physical bank statements, lenders get verified, tamper-proof financial data, and the entire consent-based flow happens in minutes rather than days. In theory, it’s a clean system. In practice, it breaks down more often than lenders publicly acknowledge. […]
A Credit Appraisal Memorandum is the backbone of any lending decision. It brings together bank statement analysis, GST returns, credit bureau data, and financial ratios into a single document that tells the lender whether a borrower is creditworthy or not. The problem? Building one manually is slow, error-prone, and not a great use of a […]
An MSME applies for a ₹25 lakh working capital loan. GSTR shows ₹60 lakh annual turnover. Bank statements show a healthy cash flow. The credit officer approves. Six months later, the loan defaults. What went wrong? Most lenders verify GSTR data and bank statements as separate documents. GSTR confirms business legitimacy and turnover. Bank statements […]
A business applies for a ₹50 lakh term loan. Their overdraft account shows a ₹20 lakh sanction limit with 45% average utilisation. Looks reasonable, right? But examine the pattern month-on-month. They’ve exceeded their sanction limit 12 times in the past year, with 87 overdrawn days total. What seemed moderate is actually consistently maxing out credit […]
Your underwriter approved a Mumbai trading firm in 48 hours. Clean documents, stable cash flow, CIBIL score of 730. Eight months later, it’s restructured. The Jaipur application you rejected last week? Your competitor funded it, and it’s performing. Same underwriting model. Same credit policies. Different states, different outcomes. India’s ₹46 lakh crore small business credit […]
The Goods and Services Tax (GST) regime in India emphasises transparency and accountability and has reshaped how financial institutions assess businesses’ creditworthiness. GST compliance, especially timely and accurate tax filing, has become a critical factor in loan approvals for Indian businesses. Lenders now view compliance as a primary indicator of creditworthiness and risk. Delayed tax […]
Lenders have long relied on income statements to assess repayment capacity. Yet, defaults still occur among borrowers with seemingly high and stable salaries. Income tells you how much someone earns, not how consistently they manage their money. Traditional credit assessments overlook a critical factor – cash flow stability. The volatility score changes that, offering lenders […]
GST returns are now one of the most dependable indicators of a business’s financial footprint. They reflect declared revenues, tax compliance, and transaction consistency. However, when GST filings don’t align with actual bank inflows, it raises serious questions about the data credibility and borrower transparency. According to the CAG report of 2024, the authorities identified […]
Lending decisions are only as strong as the financial data behind them. Yet, lenders know that not all numbers on tax returns or balance sheets can be taken at face value. GST-Bank Reconciliation provides one of the most effective ways to ensure this transparency. This process involves aligning a company’s Goods and Services Tax (GST) […]
Traditional credit scoring, led by CIBIL and other bureaus, has been the backbone of lending decisions for many decades. However, with the undeserved and new-to-credit segments’ increasing need (and demand) for loans and the microfinance delinquency rate moving up to 4.3% in 2024, lenders are realising that single scores only tell half the story about […]
