U GRO Capital today announced that it has filed an application with the Indian Patent Office for its distinguished methods and systems for modelling scorecards.
This development has helped the company to penetrate further in a highly unstructured segment, which is driven by physical processes. The model handles the unavailability of appropriate MSME database, by utilizing its unique classification technique leveraging the proprietary knowledge base and strength of statistical models.
The distinctive underwriting model generates credit score cards customized to suit the peculiarities and nuances of varied business enterprises. This is done by analysing the historical loan delinquency patterns and cash flow within each selected business segment.
U GRO Capital has been using this model since inception in 2018. The company has made disbursals of Rs 1,700 Crore in the form of secured and unsecured loans.
Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital stated, “The MSME sector is a significant driver of the Indian economy, yet only 16% of MSMEs in India receive formal credit. A major hindrance to the credit access is the limited availability of structured data pertinent to the MSME sector. We believe that MSME financing in India is at the verge of transformation with the combination of GST, Banking Data and emergence of digital infrastructure which is underpinning this transformation. U GRO Capital’s scorecard based underwriting model lies at the centre of our mission to solve the unsolved credit gap of the SMEs. The underlying methods and system are the convergence of our deep sectoral knowledge base and our analytics capabilities. Our distinctive underwriting model compliments the digitalized processes, to provide a quick and convenient access of credit to our MSME customers.”