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Defaulters May Get Second Chance at Kotak Bank
October 16, 2017
While the general consensus among the commercial lenders is that a business or individual who has defaulted once, cannot be trusted again, Kotak Mahindra Bank is planning to change that.
The private sector lender is currently conducting psychometric tests to get a better understanding of its defaulters’ intentions. What it intends to find out is that whether a particular party defaulted on purpose or due to a genuine financial weakness.
The bank has partnered with Index Advisory, which has provided the psychometric tests for measuring a borrower’s credit profile. Currently, the project is run on a small scale. If the results are satisfactory, it could be scaled up.
