Credit rating model for the rural population

Abstract

As per 2011 Census, around 69% of India’s population still comprises of people living in rural areas. The rural parts of India strike significant differences as compared to urban areas in terms of access to financial services including credit because of the following reasons: Lack of awareness and understanding about financial products. Lack of research on financial position of rural people. Riskiness/volatility of income sources in rural areas.Absence of adequate initiatives on the part of banks Our research proposes to develop a credit rating model to help in the extension of credit facilities to rural population as well as provide assistance to banks in predicting Non-performing assets using predictive analytics.