A Study Of Alternate Data Factors As A Tool For Predicting Loan Delinquencies And Reducing Loan Defaults In An Indian Nbfc

Abstract

One Of The Biggest Challenges Faced By Mbfc Across The Country From Years Is The Challenge Of Default And Delinquencies. Alternate Data Has Evolved As A Method To Overcome The Issue. The Current Paper Tries To Identify Many Alternate Data Variables Identified Across Literature, Further Based On The Opinion Of More Than 300 Credit Managers Of The Selected Nbfc Branches Across The Country, Has Identified Factors From The Same. The Researcher Further Has Taken The Opinion Of These Nbfc Credit Managers As To The New Rating Systems Based On The Factors Identified Have Been Able To Predict The Loan Delinquencies In Time And Have Been Able To Reduce The Loan Defaults. The Analysis Leads To A Favourable Conclusion.