Canara Bank launches credit scoring model to finance SMEs
Updated: May 13, 2014 03:02:20pm
The credit scoring model helps the branch managers decide the eligibility of borrowers under the MSME sector to get loans from the bank and is expected to increase financial inclusion under the sector.
According to Chairman and Managing Director of Canara Bank, RK Dubey, the scoring model will reduce the arbitrariness and subjectivity in deciding the eligibility for loans and help in reducing the rejection rate of MSME loan applications, reports media.
The eligibility is decided based upon aggregate scores secured by the loan applicant on various parameters prescribed under behavioural, management, business and financial aspects.
The model was launched here yesterday by Executive Director, Reserve Bank of India (RBI), Deepali Pant Joshi. (KNN Bureau)