CAIIB RB Unit 6 - Credit Scoring

(i)  Credit Risk              -          Customer fails to pay
(ii)  Business Risk        -           Loosing money due to wrong strategy.
(iii) Market Risk          -           Change in market prices.
(iv)Operations Risk     -           Processing failures and frauds

Cibil-TransUnion model gives scores ranging from 300 to 900.

Credit Scoring Models are based on the following details of applicants:

(i)   Family Size
(ii)  Income Levels
(iii) Occupation/Business
(iv)  Repayment History on earlier loans

The most common mistakes in credit score will be due to the following;

(i)   Confusion of names
(ii)  Human Input Error
(iii) Identity Theft