Four teachers from Lucknow University, DSMNRU and KMCLU have been given an Indian patent for the development of a software that calculates credit score eligibility of working professionals, organisations and institutions.

The credit score, that forms the basic criteria for granting loans, will be deduced through a software based on artificial intelligence and machine learning. The unique feature that the software has is that it evaluates both the earnings and expenditure of any party to ultimately get the credit score.

“Credit scoring is one mechanism used by lenders to evaluate risk before extending loans to credit applicants. The method helps distinguish credit worthiness of good credit applicants from bad credit applicants,” explained LU Prof Amit Mishra.

Out of the four commerce teachers in the group, Professor Somesh Shukla and Assistant Professor Amit Mishra are faculty of LU, while the remaining two, assistant Professor Shobhit Shukla and Professor Digesh Pandey are from Dr Shakuntala Misra National Rehabilitation University (DSMNRU) and Khwaja Moinuddin Chisti Language University (KMCLU) respectively.

The software-based technology, that was developed in five months, also takes into account alternate data, like psychometric data, social data and financial data, to deduce final credit scores. Due to this, the "system is capable of generating neglected and accurate scores," shared LU Professor Somesh Shukla.

The technology can help determine defaulters and contribute towards the economic development of the society.

(With inputs from IANS)