Volume : 4, Issue : 6, JUN 2018

CREDIT RISK ASSESSMENT OF PAYMENT GATEWAY LOANS FOR WORKING CAPITAL FUNDING OF E-COMMERCE INDUSTRY

ADITYA PANDEY

Abstract

Credit risk assessment plays a very important role in the loan process one of the major problems that an e-commerce industry may face is the lack of capital because of very low credit rating and lack of collateral, in current scenarioworking capital loan applicationsare accepted through online mode by banks, since these loans are collateral free there is high credit risk attached to it . This paper proposes a new product that is payment gateway loan and uses data of payment gateway transactions for credit appraisal and credit scoring framework along with the potential influence that a payment gateway loan may have on the bank and financial institutions risk management

Keywords

Credit Risk, Working Capital, E-Commerce, Payment Gateway Transaction Data, Working Capital, Risk Management.

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References

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