Non-Profit Open Source Initiative

Democratizing Credit Access

Open-source credit scoring platform that leverages UPI transaction data to provide transparent, fair, and accessible credit assessment for 63 million MSMEs and 190 million credit-invisible Indians.

100%
Transparent
Open
Source
Zero
License Fees
Fair
Assessment
₹25T
MSME Credit Gap
Unmet credit needs in India
69%
MSMEs Underserved
Report unmet credit needs
190M
Credit Invisible
Adults without bureau records
15.5B
UPI Transactions
Processed monthly

The Credit Access Crisis

Despite India's digital payments revolution with UPI, traditional credit assessment remains opaque, biased, and inaccessible to millions.

Black Box Algorithms

Credit bureaus use proprietary algorithms. Borrowers don't know why they were rejected with no mechanism to challenge or understand scoring.

Limited Credit History

190 million adults are 'credit invisible' with no bureau records. New businesses face a catch-22: need credit to build credit history.

Bias & Discrimination

Geographic, gender, caste, and age-based discrimination documented in studies. Arbitrary decisions by loan officers persist.

Information Asymmetry

Borrowers don't know their credit score before applying. Multiple loan applications due to rejections further damage scores.

36-60%
Interest rates from informal lenders
86%
MSMEs rely on informal sources
14%
MSMEs with formal credit access

The OpenCredit Solution

"Every honest merchant with a UPI QR code deserves transparent access to fair credit."

Transparency

All credit scoring rules are open source and publicly auditable by anyone.

UPI-Based Assessment

Leverage real-time UPI transaction data as primary credit signal.

Privacy First

Data used only with explicit consent, full DPDP Act compliance.

Multi-Lender Marketplace

Competitive lending environment drives down costs for borrowers.

Borrower Empowerment

Credit scores accessible before application with improvement tips.

Mandatory Disclosure

Lenders must disclose proprietary rule weightages to borrowers.

How It Works

Simple, transparent, and fair credit assessment in five steps.

01

UPI Transaction Data

Merchant consents to share UPI transaction history from last 3-12 months.

02

Data Analysis

Platform analyzes volume, consistency, growth, payment success rate, and customer diversity.

03

Transparent Scoring

Open-source algorithm calculates credit score (0-100) with full breakdown visible.

04

Lender Matching

Multiple lenders compete to offer best terms through transparent marketplace.

05

Fair Credit Access

Merchant selects best offer with full transparency on terms and conditions.

Open Source Scoring Algorithm

Fully transparent weighted scoring model. All logic publicly visible on GitHub.

Scoring Factors

30%
Transaction Volume
Average monthly UPI transaction volume
25%
Consistency
Standard deviation of monthly volumes
15%
Growth Rate
Recent 3 months vs previous 3 months
15%
Payment Success Rate
Successful transactions / Total transactions
15%
Customer Diversity
Concentration risk from top customers

Credit Score Ranges

80-100
ExcellentLow Risk
60-79
GoodMedium Risk
40-59
FairMedium-High
0-39
PoorHigh Risk

Eligibility Thresholds

  • • Minimum avg. monthly volume: ₹25,000
  • • Minimum transaction count: 20
  • • Minimum business tenure: 3 months
  • • Maximum payment failure rate: 20%

Mandatory Lender Disclosure

If a lender adds proprietary scoring rules, they must disclose:

Rule Description
Plain English explanation
Weightage
% contribution to decision
Rationale
Why this rule is used
Impact Range
Effect on loan terms

Projected Impact

Transformative potential for India's financial ecosystem over 5 years.

50M
Merchants
Gain access to transparent credit scoring (5 years)
₹5T
Credit Flow
Additional credit to underserved segments
40%
Reduction
In loan rejection rates for eligible merchants
30%
Cost Savings
Reduction in borrowing costs via marketplace
15M
Jobs Created
Direct and indirect employment
100%
Transparency
In credit assessment methodology

Financial Inclusion

Equal approval rates across genders and regions. 60% reduction in loan rejection for marginalized communities. Rural-urban parity in credit access.

Economic Growth

3% increase in MSME GDP contribution. ₹15 trillion cumulative GDP impact. ₹1.5 trillion additional GST collection through formalization.

Social Impact

5 million families lifted above poverty line. 40% increase in credit access for women entrepreneurs. 20 million rural merchants gain access.

Who Benefits

A platform designed for all stakeholders in India's credit ecosystem.

Merchants & MSMEs

Small retailers, street vendors, service providers, and micro-enterprises gain fair credit access.

Consumers

Credit-invisible individuals can build credit history through UPI payment behavior.

NBFCs & Fintechs

Access to verified merchant data reduces customer acquisition costs and risk.

Banks

Expand reach to underserved segments with reliable alternative credit signals.

Cooperative Societies

Credit unions and SHGs can make data-driven lending decisions for members.

Regulators

RBI and SEBI can audit transparent algorithms. Real-time data enables agile policy-making.

Why Open Source?

Open source is not just a technical choice—it's a commitment to transparency, fairness, and community-driven innovation.

Trust Through Transparency

Anyone can review code, algorithms, and scoring logic. Community auditing ensures fairness.

Continuous Improvement

Open collaboration improves algorithms. Bugs and biases quickly identified and fixed.

Ecosystem Development

Lenders, fintechs, and cooperatives can build on and customize the platform.

International Expansion

Model can be replicated in Southeast Asia, Africa, and Latin America.

Contribute to OpenCredit

Join 1000+ contributors building fair credit infrastructure

Apache 2.0
License
View Repository

5-Year Roadmap

Phased implementation strategy from proof of concept to market leadership.

Phase 1
Year 1
In Progress

Foundation

  • Launch open-source credit scoring engine on GitHub
  • Onboard 5 million merchants
  • Partner with 10 lenders (NBFCs, fintech, cooperative banks)
  • Facilitate ₹10,000 crore in loans
  • Pilot in 5 cities: Delhi, Mumbai, Bangalore, Hyderabad, Ahmedabad
Phase 2
Year 2-3
Planned

Scale-Up

  • Expand to 25 million merchants
  • 50 lenders including banks and MFIs
  • ₹50,000 crore annual loan volume
  • Launch consumer credit scoring (beta)
  • Regional language support (10+ languages)
Phase 3
Year 4-5
Vision

Maturity

  • 50 million merchants, 200 million consumers
  • 100+ lender partnerships
  • ₹2,00,000 crore annual loans
  • AI/ML credit models
  • International expansion to Southeast Asia, Africa

Join the Movement for Fair Credit

Whether you're a developer, lender, policymaker, or advocate for financial inclusion—there's a place for you in OpenCredit.