Next time you troll or stalk somebody online, just think twice. The way you behave online can decide if you can get a personal loan or whether you would get it at 30% or 9% interest against the market rate of 13-17%.
ToI reports that online lenders such as InstaPaisa, GoPaySense, Faircent, CashCare and Vote4Cash and credit marketplaces on the web like CreditMantri and BankBazaar.com are examining not only the pay slips and bank statements of prospective borrowers, but also looking at “unorthodox metrics” like social media behaviour, SMS alerts and phone location data.
According to the report, the new age lenders use algorithms that can run through tonnes of data quickly to assign a “personality score”, which is used to measure a prospective borrower’s reliability.
Sites like CreditMantri and BankBazaar.com facilitate consumers so that they can get bank loans at attractive, app-based lenders tie up with an NBFC to provide the loans. ToI reports that InstaPaisa and CASHe are trying for their own NBFC licence.
The algorithms run by the lenders to assign personality scores to borrowers look into the history of Google keywords and websites visited. Running on sentiment analytics, the algorithms also capture emotions like anger and people raging on Twitter, InstaPaisa CEO Nikhil Sharma was reported as saying. Further, the algorithms can also spot if the borrower lives beyond his/her means, drives drunk, gambles or indulges in high-risk behaviours.
While it is bad news for those who have behind them an abusive social media footprint, the algorithms also improve the creditworthiness of non-salaried people like lawyers, freelancers and consultants who earn but do not have a credit history.