The Importance of a Social Loan Quotient in a Personal Loan

 CIBIL score is a critical determinant of personal loan approval. It is a parameter that helps the lender decide how creditworthy you are. This is a smart way to assess your financial ability as well. So, the closer you are to 900, the higher the chances of receiving the funds. But Gen Z and millennials like you may have a lower score. A 2022 survey once found that 46% of young adults feel the pinch since poor scores hold them back. It is mainly due to shorter or zero credit history, which is a significant roadblock.

Rebuilding a score takes anywhere between 6 months to a year. What to do if you require an instant personal loan? This is where Social Loan Quotient or SLQ comes into play. This article tells you how this credit intelligence works. 

What is SLQ?

This is a next-generation AI, ML and smart-analytics-based credit scoring mechanism. It is fast and accurate and specially designed to serve the underbanked. SLQ exclusively relies on non-traditional data like: 

• social media footprint

• KYC details

• education

• monthly salary/income

• career experience

• smartphone metadata

The score calculation takes a few seconds, and the process is highly reliable. The bracket ranges from 0 to 995, with a higher figure representing a lower default propensity. This big data analytics industry-first system was introduced by CASHe, one of India's leading social loan companies. They strive towards leveraging financial technology to address people's immediate credit requirements. 

Importance of Social Loan Quotient 

SLQ helps to unlock the economic potential of millions of millennials who traditional banks and lending institutions otherwise exclude. It helps to unfold financial benefits by predicting an individual's character or 'willingness to pay'. The SLQ is added to traditional underwriting scorecards, allowing to tell good and bad borrowers better. Young adults are quite positively active on social media, have impressive education, assure a steady career and have their KYC details updated. All these ensure you score a good SLQ number and subsequently qualify over the instant loan app. 

How to Check the Score 

Follow these steps to see where you stand:

Step 1: Download the instant loan app on Android or iOS phones. 

Step 2: Fill in your personal details

Step 3: Submit all your KYC details

Step 4: Know your SLQ score in seconds.

Conclusion

SLQ is a powerful credit scoring mechanism. Read the terms and conditions well for an informed choice. Now you do not quite have to worry about a high credit score. A decent figure combined with SLQ can help you apply for a short-term personal loan.