To assess the riskiness of a particular real estate loan, we evaluate 10 different loan characteristics on a scale of 0 to 1.
The loans are then divided into score groups and, based on similar loans' historical performance from Estateguru’s loan book, we determine the probability of default for each score group.
Loans are assigned risk categories from A (having the lowest probability of default) to E (having the highest probability of default).
Below is a graphical representation of the Risk Score calculation.
You can read more about the Risk Scoring of real estate loans here.
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