CREDIT SCORING MODEL FOR REGISTERED CHIT FUND USERSPrincipal Investigators: Mudit Kapoor (ISB), Antoinette Schoar (MIT)
Research Team: Aneesh Mannava
LEAD Centre: Small Enterprise Finance Centre (SEFC)
Focus Area: SME Finance
Project Geography: Tamil Nadu, Delhi
Partner: All India Chit Fund Association, Bill & Melinda Gates Foundation
In order to run successful schemes, Chit Fund companies need to be able to evaluate and predict the repayment behaviour and liquidity requirements of potential clients. Chit Fund companies in India often rely on private information to make this judgement. This project aims to analyse how existing information on clients of Chit Funds can be used to predict their creditworthiness and savings/borrowing needs. The findings will be helpful in advising and guiding chit companies on collecting, using and evaluating their client data to efficiently assess a participant’s creditworthiness and optimize the member composition of a chit scheme.