Rwanda: TransUnion launches credit score
The credit information should help banks conduct a proper risk assessment.TransUnion, an international credit and information management provider, has launched its TransUnion
Credit Score for the Rwandan market.
"This is an essential tool that eliminates many of the inherent issues with manual underwriting and pre-screening methods, providing lenders with an objective, data driven measurement on which to base decisions. This is essential in reducing the risk associated with credit lending, which in turn is critical for sustainable economic growth," Grant Phillips, CEO of TransUnion Africa, told Rwanda Focus.
Aimable Nkuranga, country manager for TransUnion Rwanda, added that the score is developed using both positive and negative information from debtor's credit reports - derived from the company's proprietary consumer and business credit database - as well as data obtained from various public sources in Rwanda.
It will help collect information on the credit history of borrowers and deliver it to banks, which are often reluctant to lend because of the lack of information on borrowers.
The availability of credit information is expected to help banks conduct a proper risk assessment before taking a decision, which is likely to reduce interest rates on loans to economic operators - including small businesses - but also to increase the overall amount of credit disbursed by banks.
TransUnion is a rebranding of CRBAfrica, which was bought by parent company TransUnion Africa Holdings, a credit risk management organisation with a presence in 11 countries across Africa.