Personal Indebtedness Index
PRODUCTS / PERSONAL INDEBTEDNESS INDEX
Personal Indebtedness Index
Prediction of debtors with the inclination to amass excessive debts beyond their solvency despite the lack of signs of repayment problems in the past
The Personal Indebtedness Index (PII) is a score based risk index that indicates the probability of excessive indebtedness in the future. The index aims to predict debtors with the inclination to amass excessive debts beyond their solvency despite the lack of signs of repayment problems in the past. Thus, it helps identify customers who take loans to pay off an existing debt within due time, therefore incurring more debt in the long run.
Credit ratings generated by credit bureaus differ from models developed by institutions specifically for their own portfolios, in that credit ratings reflect the profile of borrowers on a nation-wide basis. A key benefit of credit ratings is that they offer a comparative risk level of individuals against the country average.
Identification of high-risk customers that avoid standard scoring
Function as an early warning system
Responsible lending
Efficient decision-making systems
Accurate limit and risk management
Who Can Use It?
All KKB members who use CRS and Risk Reports may benefit from the index.
