How MFI scoring works
MFI scoring is an automated process for evaluating loan applications. Specially designed systems decide whether to issue funds within minutes and without human involvement. To do this, the algorithm analyzes dozens of parameters at the same time that affect a person’s ability to repay the loan.
Checking a borrower is not merely a lender’s preference; it is a legal requirement. Article 10 of Law No. 1734-VIII requires the lender to assess an applicant’s creditworthiness before entering into an agreement and defines the basic parameters that must be taken into account during the assessment. All of them are analyzed by scoring systems.
Each MFI also has its own internal policy that provides for additional criteria for assessing solvency.
What affects an MFI’s decision to issue a loan: key assessment factors
| Factor | What the lender assesses |
|---|---|
| Credit history | Previous loans, payment discipline, and overdue payments |
| Income | Income level and stability — whether it is sufficient to service a new loan |
| Debt burden | Current credit obligations and the amount of payments on them |
| Age | Compliance with the age requirements of a specific MFI |
| Financial behavior | Frequency of loan applications, tax arrears, and other data the lender uses to assess risk |
Credit history is always taken into account during scoring because Law No. 1734-VIII requires information on the fulfillment of previous credit obligations to be considered (Article 10). At the same time, there are no specific statutory requirements for credit history — each MFI has its own loan approval factors.
Additional scoring factors
In addition to the parameters expressly defined by law, a lender may use other data in its risk assessment.
Examples of factors that may affect an MFI’s decision include:
- Time the application is submitted
- Device used to submit the application
- Behavior on the website
- Frequency of loan applications.
At the same time, there are no universal rules for all MFIs — each company has its own internal application assessment criteria.
How to improve your chances: loan approval factors
- Use BankID if the MFI offers this identification method. This allows you to provide the lender with verified data, which may positively affect the review of your application.
- State your actual income in the application form. Include all of your income, including side jobs, rental income, interest on deposits, and other receipts.
- Request a small amount. This means less risk for the lender, and after successful repayment your credit limit may be reviewed.
- Check your credit history. If necessary, correct errors or repay overdue debt.
- Do not submit many applications in a row. Several applications within a short period may be taken into account by the scoring model.
Final summary
An MFI’s decision on an application is the result of a combined assessment of various factors. Many of them, such as credit history, current obligations, and the amount of the new loan, can be changed or improved if necessary. This may significantly increase the chances of obtaining a loan.
Important to know: The information provided in this article is for informational purposes only and does not constitute financial or legal advice. The recommendations on how to improve your chances of getting a loan are provided for general understanding and do not guarantee approval by the lender.