Assessing and Redesigning Credit Risk Assessment in Microfinance Institutions in India

Credit scoring model is vital for assessing default risk by quantifying the probability of credit events. In India, user training is crucial for effective utilization among credit officers and branch managers. However, microfinance institutions face challenges due to the lack of data for borrowers with no financial history.

The paper aims to develop a scoring model for microfinance borrowers in India to address this issue. I developed this model using a classification and regression decision tree algorithm using microfinance data regarding microfinance customers who paid back their loans and their attributes (nominal and numerical), however I would appreciate some support in the use of technology (IBM Statistics or others) to build the regression tree using this data.