Credit Scoring models are tool to objectively, accurately, efficiently and systematically evaluate the risk of default.

They are “tailored-build” models which are applied in credit products directed to individuals and companies, for:

  • Evaluate loan applications – Admission scorings
  • Measure the risk of the current customers – Rating scorings

Numeravi’s consultants build scorings for individuals or companies credit products which make credit analysis more efficient and generate savings in portfolio management. We are pioneers in Latin America in the development of Credit Scorecards to evaluate group loans.

Among the various applications that have credit scorings, we can underline:

 

Evaluate loan applications

Admission Scorings

I. Decision criterion for grant loans, based on a risk measure represented by a probability of default, a score or an applicants’ rating.

II. Determine loan limits to applicants.

Rating Scorings

I. Detect possible increases in the risks of current clients before they fall into default.

II. Estimate default probabilities for:

II.1 Loans portfolio rating.

II.2 Calculate the reserves or loan provisions.

II.3 Calculate the capital by credit risk.

III. Have useful information to focus restructuring and collection actions to those debtors that have the biggest probability of default.

IV. Determine increases in loan limits.