The Telangana Government in India has partnered with Cognito Technologies, a UK-based startup, to provide individual credit ratings to unbanked people using blockchain technology.

Under the partnership, Cognito Technologies will set up an office in Hyderabad, India, and work collaboratively with Sthree Nidhi Credit Cooperative Federation Ltd. on the project. With a total of 15 employees, the project is intended to utilize blockchain to record the credit transactions of individuals.

Murali Muhan Duvvuru, Co-Founder of Cognito Technologies, has stated that users having good credit score can leverage their rating to enjoy loans at cheaper interest rates. Initially, the pilot project will be carried out for two-three months and depending on the results, the scaling of the project will be decided.