Abstract

One of the biggest challenges faced by NBFC across the country from years is the challenge of
Default and delinquencies. Alternate data has evolved as a method to overcome the issue. The
current paper tries to identify many alternate data variables identified across literature, further
based on the opinion of more than 300 credit managers of the selected NBFC branches across
the country, and has identified factors from the same. The researcher further has taken the
opinion of these NBFC credit managers as to the new rating systems based on the factors
identified have been able to predict the loan delinquencies in time and have been able to reduce
the loan defaults. The analysis leads to a favourable conclusion.