Lower income group borrow at highest of interest rate. Why?
Because they are low-income customers, operate in cash ecosystems and have small transaction values, little has been done to integrate them into formal economy for two reasons:
They are unable to meet ‘traditional’ lending criteria of banks: no credit score means no credit worthiness
Available credit products in the formal market serve only those who afford average monthly balance: "400m+ loans were approved in 2014 but less than 1 in 7 were approved for a formal loan."
About Inkredo app
Inkredo is a product that helps small businesses (typically individuals in lower income group) in emerging markets validate their financial identities and get access to fair credit to advance their business & family. We are using predictive algorithms to develop proxies in credit assessment to bring formal, accessible and affordable credit to millions of lower-income consumers in emerging markets.