Beyond the Credit Score
Traditional CIBIL scores rely primarily on credit bureau data — past loan repayments, credit card usage, and defaults. For the estimated 400 million Indians with thin or no credit files, this creates a "credit invisible" problem.
What Alternative Data Looks Like
NBFC lenders and fintech platforms are using Account Aggregator bank statement data, GST filing history, e-commerce purchase patterns, and even app usage metadata (with explicit consent) to build creditworthiness models. Early results suggest these models improve loan approval rates for creditworthy thin-file borrowers while reducing default rates.
What This Means for You
If you are building credit from scratch, maintaining a consistent digital footprint — regular UPI transactions, timely utility payments, active bank account activity — helps build a positive alternative data profile. And always read consent forms before granting data access to lending apps: understand what you're sharing and for how long.