In India, you must have heard people in Photocopy shops saying "Give me a Xerox of this document". Even on the signboards outside the shop, you will find "Color/B&W Xerox facility available". In other words, "photocopy" means "xerox". Not many people are aware that Xerox is an American company pioneer in photocopy products. Similarly, In India, Credit Score means CIBIL Score :). Not many people know that CIBIL is one of the 4 Credit Bureaus operating in India. According to Wikipedia, Credit Bureaus are the collection agencies that gather information from creditors and provide that ... Read More
CIBIL Masking – All you want to know to avoid being cheated
CIBIL Masking is nothing but an offer to defaulter to clear all the past dues along with penalties and interests. The past dues or outstanding loans are either written off or settled in the CIBIL report of a defaulter. If borrower accepts CIBIL Masking offer then the bank promises to remove Written-off or Settled Status from the CIBIL Database. To know more about these 2 terms, please check my post, CIBIL Score - 7 Jargon you should know to read CIBIL report. Before we proceed, i would like to request the readers to understand your CIBIL report before taking any decision or action. The ... Read More
Personal Loan – 5 Important Points to Avoid Rejection by Bank
Personal Loan is availed by borrowers to meet the immediate financial requirement. It is an unsecured loan. You need not provide any collateral/mortgage to avail the personal loan. The only collateral is signed cheques submitted by the borrower. As it is an unsecured loan, therefore, the rate of interest is much higher at 16%. Now compare it with secured loans like Home Loan at 9.55%. To be very honest, you can avail personal loan only if you are a salaried individual. Second pre-condition of the banks is that you should be maintaining good financial relation with the bank. The loan amount is ... Read More
Loan – Check its impact on CIBIL Score
A Loan is another name of consumerism. An easy finance or loan is both good and bad for the economy. Recently, you must have read news articles on the Gross NPA's of the banks. Though no one is willing to state the obvious, that it is a direct fall out of easy loans in past. The declining interest rates are good for an economy but to maintain the quality of a mortgage is a big challenge. It is another threat to the economy. It is called Easy Money. Though we can say that without consumption, the economy cannot grow and I do agree. But in this whole debate we miss a very crucial point that it's ... Read More
How Financial Institutions Kill CIBIL Score?
CIBIL reporting by financial institutions is one of the most discussed topics on my website. I never suggest my clients to default on loans/credit card/overdraft. As i keep highlighting that any default may lead to a major impact on CIBIL Score of the borrower. To avoid credit default, financial institutions urgently need Credit Counselors. Even in the case of a credit default, defaulter should be punished and penalized which is logical and reasonable. Moreover, punishment should be as per existing rules and regulations. Through this post, I am not justifying the default on credit availed by ... Read More
Impact of Low Value Loan on CIBIL Score
Loan in any form is not good for financial health of an individual specially low value loan. I don't believe in Good Loan or Bad Loan, it should be avoided (If possible). Rather i believe in credit discipline and good credit practices to improve CIBIL score. I do agree that for an asset like property, an individual cannot be save such a huge amount to buy property without home loan. Barring few exceptions i.e. high value assets, we can manage our finances to avoid low value loan / borrowing. In my opinion, a Loan should be availed if following 2 conditions are fulfilled (a) Purchase / Buy ... Read More