#Credit

Articles about Credit — exploring patterns, best practices, and real-world implementations in production systems.

14 posts tagged with credit. ← All posts

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Pratik Dhanave · ·7 min read

Reject Inference: Modeling the Applicants You Declined

Why a scorecard trained only on funded loans quietly overstates its own accuracy, and the inference techniques that pull the declined population back into view.

Why credit models trained only on approved-and-funded loans are biased, and the reject-inference techniques (reclassification, parceling, augmentation) that correct for the applicants you never observed.

#Financial AI#Machine Learning#Credit#Lending
Pratik Dhanave · ·7 min read

Explaining Credit Decisions: SHAP and Adverse-Action Reason Codes

How lenders turn a model's raw probability into the specific, legally required reasons a declined applicant must receive.

Turning model outputs into legally-required adverse-action reason codes. Global vs local explainability, SHAP values, mapping contributions to reason codes, and fairness checks (disparate impact) that regulators expect.

#Financial AI#Machine Learning#Explainability#Credit
Pratik Dhanave · ·6 min read

Weight of Evidence and Information Value: Binning for Credit Models

How WOE binning turns raw variables into monotonic, interpretable predictors on a log-odds scale, and how Information Value ranks which features earn a place in a regulator-defensible scorecard.

How WOE binning turns raw variables into monotonic, interpretable predictors, how Information Value ranks feature predictive power, monotonic binning, handling missing/rare bins, and why this discipline underpins regulat…

#Financial AI#Machine Learning#Credit#Feature Engineering
Pratik Dhanave · ·6 min read

Engineering a Pay-in-4 BNPL Flow

Checkout-time soft credit checks, upfront merchant settlement, and the installment collection loop that carries the real risk.

Engineer a 4-installment BNPL flow: checkout-time soft credit check, upfront merchant settlement, and installment collection.

#Fintech#Lending#Credit
Pratik Dhanave · ·5 min read

Delinquency as a State Machine: DPD Buckets, SMA, and NPA Classification

Model days-past-due transitions, SMA/NPA classification, provisioning triggers, and cure logic as one deterministic engine driven by time and repayment events.

Teaches how to model delinquency as a state machine: days-past-due bucket transitions, SMA/NPA classification rules, provisioning triggers, and cure/roll-forward/roll-back logic driven by repayment events.

#Fintech#Lending#Credit
Pratik Dhanave · ·6 min read

Building a Credit Decisioning Engine

How to assemble features from bureau, bank, and alt data, serve a scorecard or model, apply policy cutoffs, and emit adverse-action reason codes with a full audit trail.

Teaches how to build a decisioning engine: feature assembly from bureau/bank/alt data, scorecard vs ML model serving, policy rules and cutoffs, and adverse-action reason-code generation with an audit trail.

#Fintech#Lending#Credit
Pratik Dhanave · ·7 min read

Building a Deterministic Amortization Schedule Engine

Computing loan amortization you can reproduce to the cent — annuity math, day-count conventions, the per-installment principal/interest split, and prepayment recomputation.

Teaches how to compute loan amortization deterministically: EMI/annuity vs reducing-balance formulas, day-count conventions, principal/interest split per installment, and prepayment/rescheduling recalculation.

#Fintech#Lending#Credit
Pratik Dhanave · ·7 min read

Building a Daily Interest Accrual Engine

How to compute interest that earns every day, tracks the accrued-but-unbilled balance, survives mid-period rate changes, and posts to the ledger with idempotent replay-safe jobs.

Teaches how to build a daily interest accrual engine: accrual basis and compounding, accrued-but-unbilled tracking, rate changes mid-period, and idempotent daily accrual jobs that post to the ledger.

#Fintech#Lending#Credit

All posts on this site are written by Pratik Dhanave, an Agentic AI Architect with 7+ years building production distributed systems, multi-agent AI platforms, and cloud-native infrastructure. About the author → Each article includes working code, architecture diagrams, and references to the specific frameworks and standards discussed. Browse all posts or explore related topics using the tag cloud above.