Risk-Based Loan Pricing

AI-Powered Dynamic Loan Pricing for Smarter Risk Management

Introduction

Traditional flat-rate loan pricing fails to account for individual borrower risk, often resulting in suboptimal profitability and increased default rates. Glib.ai’s Risk-Based Loan Pricing solution uses AI and machine learning to dynamically assign interest rates based on real-time borrower risk assessment — enabling banks and NBFCs to maximize returns while ensuring regulatory fairness.

"GLIB.ai will help us assess merchant risk in a better and more efficient manner. With FinRay, we can quickly analyze key ratios from financial statements across multiple languages."

Francesco Garcia

Director - Merchant Credit Risk

Other Use Cases

Loan Origination Automation Borrower Profile Enrichment Risk Based Loan Pricing Loan Monitoring Loan Disbursement Automation Loan Servicing Automation

Key Benefits

Personalized Loan Pricing at Scale: AI models evaluate each applicant’s financial health, credit history, income patterns, and repayment behavior to generate customized interest rates that reflect their true creditworthiness.
Optimized Risk-Reward Strategy: Lenders can price loans based on precise risk bands, improving portfolio health, profitability, and reducing non-performing assets (NPAs).
Real-Time Pricing Engine: Rates adjust dynamically as new data flows in — ideal for instant loan approval journeys or post-sanction repricing strategies.
Built-In Compliance Layer: Ensures pricing algorithms stay within regulatory boundaries (RBI Fair Practice Code, SEBI, and AML norms), protecting both lender and borrower interests.
Plug-and-Play Integration: Seamlessly connects to LOS, LMS, credit engines, and underwriting systems via secure APIs.

Human expertise + Machine intelligence

Assist, augment and automate.

Questions? Answers.

Here are some frequently asked questions. If you have any other questions, please feel free to contact us.

How does AI determine loan pricing with Glib.ai?

Our platform analyzes multiple variables such as: - Credit score and bureau reports - Monthly cash flow and debt-to-income ratio - Transactional behavior (bank statements, EMI history) - Employment and income stability - External risk signals like market trends and delinquency probabilities The AI then assigns an optimized interest rate for each borrower based on their individual risk profile.

Does Glib.ai support dynamic interest rate updates post-sanction?

Yes. Our system can reprice loans in real time if a borrower's risk profile improves or worsens during onboarding, top-up, or restructuring stages. This enables proactive risk control and competitive pricing.

Can financial institutions set their own pricing rules?

Absolutely. You can define pricing bands based on internal credit risk ratings, lending segments, or business goals. Our AI augments, not replaces, your pricing logic — ensuring full customization.

How does Glib.ai ensure regulatory compliance in loan pricing?

We follow RBI's Fair Lending Practices and ensure: - Transparent interest rate computation - No discrimination or algorithmic bias - Auditability of pricing logic - Full alignment with SEBI, AML, and DPD reporting guidelines

Is it easy to integrate Glib.ai’s pricing engine into our existing workflow?

Yes. Our solution is API-first and easily integrates into your: - Loan Origination System (LOS) - Loan Management System (LMS) - Credit Decisioning Platforms We also offer SDKs and cloud/on-prem deployment options depending on your infrastructure.

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