Now, score high marks in exams to get low interest rates on loans


Can 90% in your college exam get you an iPhone? It could as a number of online student lenders are scrutinising marksheets to assess credit worthiness, and hand out loans for consumer durables.
Students are a fairly large market as they want to be seen with the latest gadgets. Little wonder that lenders are using unorthodox ways to woo them.

"Adults can show their I-T returns, salary slips or credit scores to get a loan. But students don't have such documents. In the absence of such credit metrics, we take unusual steps for credit assessment," says Madhusudhanan, CEO of KrazyBee, a student credit platform. Of KrazyBee's 4.5 lakh student customer base, about 50% take student loans for laptops, mobile phones and hard disks.

Lenders also look at the other criteria such as the reputation and graduation rate of the educational institution that the student is from and placement numbers. "We look at the type of college and individual performance," says Madhusudhanan. A few colleges have automated the scoring process so loan approval is faster. Visvesvaraya Technological University, Bengaluru,....Read more

 

Source web page:Times of India


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