Mumbai (Maharashtra) [India], December 12: Paisalo Digital, a systemically important non-deposit taking NBFC, has unveiled an advanced AI-powered customer profiling and fraud detection framework to strengthen its credit risk management ecosystem. This new system is designed to enhance underwriting accuracy, mitigate fraud and enable more reliable lending decisions for underserved customers across semi-urban and rural India.
Under the new system, every customer, guarantor and co-borrower is assessed as a distinct financial identity. The AI engine detects duplicate identities, monitors cumulative exposure limits and flags high-risk patterns. This approach provides greater transparency into borrower histories and helps prevent overlapping liabilities that could otherwise compromise repayment capacity or signal concerns about loan intent. This comes alongside the rollout of Paisalo's GenAI-based calling system, an automated platform that enhances the loan recovery process and borrower communication. The framework will be integrated across Paisalo's secured and unsecured lending verticals, including Micro Loan Against Property (Micro LAP), Income Generation Loans and MSME financing. This technology also enables dynamic customer scoring by analysing multiple data parameters, including repayment behaviour, asset ownership, demographic attributes, income stability, bank transactions and collateral linkages, enabling tailored lending decisions without compromising financial inclusion goals.
Commenting on the initiative, Santanu Agarwal, Deputy Managing Director, Paisalo Digital, said, “AI-driven risk assessment is not just a technological milestone for us; it reinforces the foundation of responsible lending. By treating each customer, guarantor and co-borrower as a distinct identity, our system ensures fairness in decision-making, transparency in evaluation and early detection of risky patterns. It reflects our commitment to strong governance and prepares us for the next era of digital credit, where intelligence and accuracy will define industry leadership.”
The launch comes at a time when India's financial services landscape is rapidly evolving, and digital risk-assessment tools are becoming indispensable for secure and scalable lending. With growing demand for secured and small-ticket credit, robust fraud-prevention mechanisms are crucial to sustaining long-term growth and maintaining customer trust.
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