Financial Risk Analyser for Borrowers
An open-source borrower risk analysis platform that evaluates loan eligibility using financial data and alternative credit behavior to help lenders and borrowers make transparent, informed lending decisions.
Borrower Risk Analyzer is an open-source financial decision-support platform designed to evaluate the loan eligibility and financial risk level of borrowers, especially those who lack a traditional credit history.
In many developing economies, millions of individuals such as gig workers, small business owners, and people in the informal sector are unable to access formal loans because they do not have a credit score or prior borrowing history. Traditional banking systems rely heavily on past credit data, which leaves financially responsible individuals without formal records excluded from the lending ecosystem.
Our platform addresses this challenge by providing a transparent borrower risk evaluation system that analyzes key financial indicators such as income, expenses, existing debts, and loan affordability. In cases where a borrower does not have a credit score, the system incorporates alternative financial behavior data, such as regularity of rent and utility bill payments, to estimate financial reliability.
The application provides three role-based interfaces:
Borrower Interface – Users can create an account, securely submit financial information, check their risk score, calculate EMI, explore loan options, and assess loan eligibility before applying.
Banker Interface – Lenders can review borrower profiles, analyze calculated risk scores, and make informed lending decisions based on transparent financial insights.
Admin Interface – Administrators monitor system activity, manage users, and oversee loan evaluation analytics.
The system uses a rule-based financial analysis engine that calculates financial ratios such as expense-to-income ratio, debt-to-income ratio, and EMI affordability to generate a risk score and classify borrowers into risk categories. This helps both borrowers and lenders make more informed and responsible financial decisions.
By combining financial analysis with alternative credit indicators, the platform promotes financial inclusion, transparency, and responsible lending practices. As an open-source project, it can also serve as a foundation for future research and improvements in alternative credit scoring models.