Credit Assessment Methodology

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Credit Assessment Methodology

Lendtreefunding has a well-defined Credit Assessment Process which ensures 360-degree assessment of borrower's credit profile. We have developed an automated in-house Credit Evaluation Model which is based on real-time integrated analysis of data from mobile, social media, CIBIL report, bank account statement etc. Our credit model evaluates borrowers' profiles on more than 100 parameters using thousands of data points. Our in-house credit evaluation team assesses the credit risk of each borrower and classifies the loan proposal in the suitable lendtree Risk Category from A-F. A being the category with the strongest credit profile and F being the weakest. Along with the risk category, lendtreeFunding also recommends an interest rate for each loan.

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What Our Credit Score Model Captures

We evaluate borrowers on more than 100 parameters but all of these can be clubbed into 2 major groups-

Ability to Pay

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Salaried Borrowers

A borrower may default if he/she does not have ability to repay the EMI. the ability to pay is dependent on multiple factors. Some of the factors which we considered are listed below:

  • Monthly Income
  • No. of dependents
  • Existing debts
  • Credit card outstanding
  • The average balance being maintained in a bank account
  • Expenditure Pattern
  • Spouse income if any
  • Overall work experience
  • Category of the company in which borrower is working
  • Experience in the current company
  • Education background and highest degree

Self Employed Borrowers

A borrower may default if he/she does not have the ability to repay the EMI. Ability to pay is dependent on multiple factors. Some of the factors which we considered are listed below:

  • Monthly Income
  • No. of dependents
  • Existing debts
  • Credit card outstanding
  • The average balance being maintained in a bank account
  • Expenditure Pattern
  • Spouse income if any
  • Overall work experience
  • Category of the company in which borrower is working
  • Experience in the current company
  • Education background and highest degree
  • Education background and highest degree
  • Location of business/office
  • Business set up


Intent to Pay

A borrower may default if he/she does not have the ability to repay the EMI. Ability to pay is dependent on multiple factors. Some of the factors which we considered are listed below:

  • Monthly Income
  • No. of dependents
  • Existing debts
  • Credit card outstanding
  • The average balance being maintained in a bank account
  • Expenditure Pattern
  • Spouse income if any
  • Overall work experience