Linking financial data and consolidating existing data for small and medium enterprises and corporates can provide banks with the necessary information to assess creditworthiness of borrowers, the Confederation of Indian Industry (CII) has said, adding that “this can also enable banks to devise a tailored interest rate policy by differentiating borrowers.”

The CII said the data is present in the system, though the ownership is with different government bodies. “It is possible to thread these data accesses together for a well-connected digital infrastructure that can enable banks to lend to credible borrowers,” said Chandrajit Banerjee, Director General, CII.

The CII said the banks would benefit from authentic financial and other data to accurately identify the right customers. “The banks may choose to offer loans at varied interest rates depending on the strength of the data of the customer,” it added.

The industry body said data for establishing identification of the borrowing entity can be procured through PAN, TIN/CIN/ GSTIN (post launch of Goods and Services Tax), Articles of Association and Memorandum of Association, annual returns with the Ministry of Corporate Affairs, and provident fund data with Employees Provident Fund Organisation.

“All the data that exists in independent silos need consolidation to provide the requisite information to the lending entity,” it added.

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