Northern Arc’s ML tool NuScore to aid Pahal Financial Services’ underwriting
Northern Arc Capital has announced that its machine learning (ML)-based analytical tool, Nu Score will aid the underwriting and risk assessment for Gujarat-based NBFC, Pahal Financial Services. With this real-time insights from Nu Score, Pahal Financial Services foresees disbursements of Rs 2,000 crore to its 6.5 lakh borrowers in the 2024 fiscal.
Founded in 2016, Pahal has disbursed microfinance loans of nearly Rs 4,500 crore to 10 lakh customers, the company said in a statement. Ashish Mehrotra, CEO & MD of Northern Arc Capital, expressed enthusiasm about the potential impact of Nu Score on their relationship with clients like Pahal.
«It will use ML services to optimize risk, enhance productivity, reduce TAT and scale their business. It fits in perfectly with our strategy of identifying and working with high quality institutions and offering them a wide bouquet of financial, tech and analytical products,» Mehrotra said.
Nu Score is a machine learning scoring model that generates a detailed borrower-level analytics report within seconds for lending institution, it said in a statement. «Pahal aims to become a tech-enabled microfinance service provider, and the strategic partnership with Northern Arc for Nu Score will significantly contribute to achieving this goal.
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