Reasons in writing, as RBI's Fair Practices Code asks of lenders (simulated)
Statement of reasons for credit decision
Pathway · Demo Lender
Ref PW-BORDERLINE-634
Model trained 2026-10-05
Decision
Rohan, this application was declined with a Pathway score of 634 (approval needs 650). The biggest factor: You are using 75% of your credit card limits. High balances signal stretched finances. If you follow the plan below, you are projected to be approved in about 3 months.
Unsecured facility (₹500,000) with no underlying collateral backing. Risk analysis relies strictly on borrower credit discipline, disposable income, and leverage (FOIR: 42%).
*For this assessment, loan type, loan amount, collateral, and inquiry activity are considered separately from the credit-risk model.
Declined
634
Approval needs 650 · Chance of default in 2 years 12.1%
Principal reasons, ranked
- R1Credit card utilisationYou are using 75% of your credit card limits. High balances signal stretched finances.−55 pts
- R2Late 30–59 days (DPD)1 payment(s) were 30–59 days past due (DPD) in the last 2 years.−41 pts
- R3FOIR (EMIs as % of income)EMIs and other fixed payments take 42% of your income (FOIR).−3 pts
Path to approval
- 1Bring credit card balances down from 75% to 60% of your limits (3 mo)
Not used by the model: Age · Dependents · Real-estate loans
Projected timeline
Approved in 3 months
| Month | With plan | No changes |
|---|---|---|
| 0 | 634 | 634 |
| 3 | 654 (Approved) | 634 |
| 6 | 654 (Approved) | 634 |
| 12 | 705 (Approved) | 685 |
| 18 | 705 (Approved) | 685 |
| 24 | 705 (Approved) | 685 |
| 36 | 705 (Approved) | 685 |
Money saved by following the plan
IllustrativeThe same loan of ₹2,00,000 over 36 months, priced today and after the plan.
Today
Declined by a prime lender
36% a year
High-cost alternative
- Monthly payment (EMI)
- ₹9,161/mo
- Total interest
- ₹1,29,787
After the plan
Fair tier
18% a year
- Monthly payment (EMI)
- ₹7,230/mo
- Total interest
- ₹60,297
Projected interest saved
₹69,490
₹1,930 lower monthly payment
Illustrative risk-based pricing, not any lender's actual rates and not an offer of credit. Tiers: score 760+ 10.5% · score 720+ 12.5% · score 690+ 15% · score 650+ 18%. Below score 650 a prime lender declines, so the comparison uses a high-cost alternative at 36% a year.
Timeline certainty
Simulation400 simulated futures of the same plan, each with its own pace and setbacks.
- Best case
- month 2
- Likely approval
- month 3
- Worst case
- month 4
100% of simulated futures reach approval within 36 months.
Each simulated future draws its own pace of paydown and income growth, and may include an income shock or a new late payment. Best and worst case are the 10th and 90th percentiles; likely is the median. A projection, not a promise.
Applicant data used
- Monthly income
- ₹92,000
- Credit card utilisation
- 75%
- FOIR (EMIs as % of income)
- 42%
- Active loans and cards
- 6
- Late 30–59 days (DPD)
- 1
- Late 60–89 days (DPD)
- 0
- Late 90+ days (DPD)
- 0
Assumptions
- Plan horizon: 36 months maximum
- Card paydown pace: up to 6% points of card utilisation per month
- EMI reduction: 5% of today's EMIs per month, 50% max
- Income growth: 0.6% per month, capped at +15% in total
- Active loans and cards: change by at most 2, effective after 1 month
- Late payments: counted over 24 months, assumed evenly spread, age out if every future payment is on time
- Not used by the model: age, dependents, real-estate loans
Model
Logistic regression on Kaggle data (Give Me Some Credit schema), test AUC 0.855 (validation AUC 0.857). Reason codes are exact per-feature contributions to the log-odds, relative to the average applicant.
Your rights (illustrative)
You may request a human review of this decision, correct any inaccurate data, and re-apply. This report explains the factors used; the model does not use age, dependents or real-estate loans.
Pathway is a simulation built on a public dataset for a hackathon. It is not a credit decision, not financial advice, and not affiliated with any lender.