Transparent Scoring Methodology

How We Calculate Credit Scores

Understanding the multi-factor algorithm behind GreenLend's fair and sustainable credit assessment

Three-Component Scoring System
Our algorithm evaluates applicants across three dimensions, weighted by real-world impact
Traditional Credit Data
20% Weight

Limited weight for underserved populations without formal credit history

Alternative Data Sources
50% Weight

Primary indicator: mobile payments, business presence, utilities, social proof

SDG Impact Assessment
30% Weight

Sustainability bonus: carbon footprint, renewable energy, job creation, community impact

Why This Distribution?

We prioritize alternative data (50%) because traditional credit history is often unavailable for underserved populations. SDG scoring (30%) incentivizes sustainable practices, while traditional data (20%) provides baseline trust signals where available.

1

Traditional Credit Score (20%)

Limited Formal Credit History
Base score + utility payment adjustments
Base Score
40 points

Starting point for individuals without formal credit history

Utility Payment History
Up to +20 points

Electricity, water, and internet payment consistency over 24 months

Score = min(20, (on-time_payments / 24) × 20)
Maximum Traditional Score: 60/100

Weighted contribution to final score: 12 points (60 × 0.20)

2

Alternative Data Score (50%)

Mobile Payment History
Up to 30 points
  • Transaction volume: 15 points max (count / 100 × 15)
  • On-time rate: 15 points max (ratio × 15)
Score = min(30, tx_count/100 × 15 + on_time_ratio × 15)
Business Presence
Up to 25 points
  • Google Maps rating: 15 points max (rating/5 × 15)
  • Review count: 10 points max (count/10 × 10)
Score = min(25, rating/5 × 15 + min(10, reviews/10 × 10))
Utility Consistency
Up to 20 points
  • Electricity: On-time payments / 24 months
  • Water & Internet: Combined consistency
Score = min(20, (elec + water + inet) / 72 × 20)
Social Proof
Up to 15 points
  • Community vouches: 3 points each
  • Business references: 5 points each
Score = min(15, vouches × 3 + refs × 5)
Maximum Alternative Score: 90/100

Weighted contribution to final score: 45 points (90 × 0.50)

3

SDG Impact Score (30%)

Environmental Factors
  • Carbon Footprint: Up to 15 points
    max(0, 15 - CO₂_tons/2)
  • Renewable Energy: +10 points (boolean)
  • Waste Recycling: +8 points (boolean)
  • Organic Practices: +7 points (boolean)
Social Impact Factors
  • Job Creation: Up to 10 points
    min(10, jobs_created × 2)
  • Women Employed: Up to 8 points
    min(8, women_count × 2)
  • Fair Wages: +7 points (boolean)
  • Community Impact: Up to 5 points
    (impact_score / 10) × 5
Maximum SDG Score: 70/100

Weighted contribution to final score: 21 points (70 × 0.30)

Final Credit Score Formula

Weighted sum of all three components

Final Score = (Traditional × 0.20) + (Alternative × 0.50) + (SDG × 0.30)
Range: 0-100 | Approval Threshold: ≥50 | Excellent: ≥80

Loan Amount Eligibility

  • • Score ≥80: Up to Rp 50,000,000
  • • Score 70-79: Up to Rp 30,000,000
  • • Score 60-69: Up to Rp 20,000,000
  • • Score 50-59: Up to Rp 10,000,000

Interest Rate Calculation

  • • Score ≥80: 12% base rate
  • • Score 70-79: 14% base rate
  • • Score 60-69: 16% base rate
  • • Score 50-59: 18% base rate
  • • SDG bonus: -1% to -2% discount
Fairness & Bias Mitigation
How we ensure equitable access

No Credit History Penalty

Alternative data (50% weight) ensures those without bank accounts aren't automatically excluded

Sustainability Rewards

Green businesses get better rates (-2% interest) and higher approval odds through SDG scoring

Transparent Criteria

All factors and weights are public—borrowers know exactly what contributes to their score