What is the Role of SLQ in a Personal Loan Landscape?

 Nearly 480 million Indians aged below 65 or almost 50% of the population of earning Indians are "credit-unserved". One of the reasons for that is a poor credit score. You may not get a loan from a bank or a traditional lending institution if your score falls marginally short of the lender's expectations. 


On the other hand, new-age digital lenders consider many factors, along with your credit score, before lending you funds. The good news is that these factors are non-traditional, making credit assessment more effortless and advanced.  


Social Loan Quotient (SLQ) is based on this concept to offer financial inclusiveness to borrowers rejected by conventional financial institutions and banks. It has changed how credit assessment works and made it simpler for you to access an instant personal loan. Read on to know more about SLQ. 




How Does the SLQ Score Work? 

Social Loan Quotient works on the loan app of a fintech lender in India and is the first of its kind in the country. It's a revolutionary credit-rating mechanism based on big data analytics, machine learning and artificial intelligence. This allows the score to be calculated within seconds with accurate results so that borrowers can rely on it to apply for an online loan. 


Like a traditional credit score, the Social Loan Quotient score comes in a range (of 0-995). A higher score means a lower chance of the borrower defaulting. 


The advantage is that the SLQ score leverages various modern data sources such as your: 

  • Social media footprint 

  • Smartphone metadata 

  • Basic KYC details

  • Monthly salary

  • Career experience

  • Educational qualifications

  • Credit Score


When a borrower's Social Loan Quotient is added to a conventional underwriting scorecard, it has been proven more helpful in assessing creditworthiness. Thus, a more comprehensive credit assessment can be made. 


How to Boost Your SLQ Score?

As the SLQ score is based on your social media footprint and updated details, you can improve the score by: 

  • Maintaining a good social media presence and not engaging in condemnable activities like stalking and sending inappropriate comments. 

  • Keeping your details of KYC, career experience, salary and education updated.   


A good SLQ score means higher chances of qualifying for instant personal loans. 


How to Check Your SLQ Score? 

First, download the chosen fintech lender's loan app from Google Play Store or App Store. The app provides the necessary personal details and uploads with the required KYC documents. You can learn your SLQ score anytime, anywhere, in just a few seconds. 


Conclusion

Since your Social Loan Quotient can be built, improved and checked quickly to get an instant loan, it can help you meet various urgent cash requirements. So, go ahead and build a high SLQ score today!

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