Finance, Income & Trade Rank & (FIT Rank)

Finance, Income & Trade Rank & (FIT Rank)

Under the mentorship of SIDBI, CIBIL, in collaboration with Online PSB Loans Limited (OPL), launched FIT rank by leveraging the power of Goods and Services Tax (GST), Bank Statements, and Income Tax returns (ITR) information to provide a ranking model for MSME lending. The ranking model uses machine learning algorithms to arrive at the probability of an MSME becoming a non- performing asset (NPA) in the next 12 months based on its financial, income, and trade data. The ranking is done on a scale of 1 to 10 with FIT Rank 1 for the least risky MSME and FIT Rank 10 for the most at-risk MSME. Each FIT rank corresponds to a Probability of Default (PD) and lower the FIT Rank, lower is the PD associated with the MSME.

FIT Rank triangulates information from multiple sources to provide a unified view of financial, income and trade data for an MSME, enabling improved risk differentiation and sharpened credit underwriting for MSME loans. SIDBI has launched a new Express loan Product for MSMEs to provide loans for purchase of machinery / equipment through straight through processes using FIT Rank. FIT Rank is also being used in GST Sahay platform as well.