Lucknow, Jul 27 (IANS): A team of four commerce teachers - two from Lucknow University (LU) and one each from Dr Shakuntala Misra National Rehabilitation University and Khwaja Moinuddin Chisti Language University - have been granted an Indian patent for developing a software to calculate the credit score eligibility of individuals and institutions.
A credit score is evaluated for granting loans. Based on machine learning and artificial intelligence, this software is different from the ones available in the market as it calculates both ‘earnings' and ‘spending’ of an organised and an unorganised sector to deduce the credit score.
The team comprising Lucknow University’s Professor Somesh Shukla, assistant Professor Amit Mishra, DSMNRU assistant Professor Shobhit Shukla and KMCLU Professor Digesh Pandey have developed this software in five months.
“Credit scoring is one mechanism used by lenders to evaluate risk before extending loans to credit applicants. The method helps distinguish credit worthiness of good credit applicants from bad credit applicants,” said Prof Amit Mishra.
He said that the software is unique as it will not only help in calculating the credit score of an organization, institution or working professional but it also records alternate data to evaluate the credit score. For example, a student's credit score can be calculated by calculating the money earned through tuition, money invested in booking flights, hotels and others to reveal his or her credit score.
LU’s commerce department head Prof Somesh Shukla said, "Using artificial intelligence and machine learning, this software-based technology designed by our team can accurately assess the credit score eligibility of individuals and institutions, in which alternate data (psychometric data, social data, financial data) is used, due to which this system is capable of generating neglected and accurate scores.”
He claimed that with its use, there will be an unprecedented reduction in the number of willful defaulters, which will play an important role in the economic development of our country.