Personal Lending and Borrowing is very common and deep-rooted in the Indian Society. We double up as a borrower and lender depending on the situation/circumstances. With economic prosperity and ease of borrowing, personal lending has subdued but still very popular in small cities and towns. The people prefer to borrow from a known person rather than from a bank or financial institution. In many cases, it is compulsion because of low CIBIL Score or under reporting of income in ITR. It means an individual cannot avail credit facility from the bank or financial institution. Though not 100% ... Read More
Why High CIBIL Score Does Not Guarantee Loan or Credit Card
High CIBIL Score does not guarantee loan or credit facility. I keep highlighting this point in my posts on CIBIL Score. Recently, one of the blog readers wrote to me that his home loan is rejected despite a CIBIL Score of 800. I do understand the pain and agony. At the same time, it is important for potential borrowers to understand the importance of credit behavior. Unfortunately, it is getting more difficult to avail credit or loan facility with each passing day. Business of High CIBIL Score and Marketing Strategy There are a lot of 3rd party credit agencies in the market promising a ... 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
Private Lending – Beware of 5 Points Before You Borrow
Private lending is most suitable for the borrowers who don't have any other option left to borrow. There can be multiple reasons like urgent fund requirement, emergency or loan rejection due to CIBIL Score, Loan eligibility, Income, etc. Whatever be the reason, it is important to understand the concept of private lending before commitment. In almost all the cases, private lending is backed by the collateral of equivalent value. Therefore, private lending is not guaranteed if you don't have any asset or holding to put up as a collateral. Private lending is more popular in small town, cities, ... Read More
SBI FlexiPay Home Loan – Why you should Avoid
SBI FlexiPay Home Loan is a new Home Loan product from SBI. SBI is the country's largest lender. Obviously, i was expecting a lot of buzz around SBI FlexiPay Home Loan. I also shared in my post, why borrowers prefer SBI Home Loan. As usual, my friends from personal finance space jumped the guns to declare it is as the best product around. I will not get into the nitty gritty of SBI FlexiPay Home Loan. I hope all potential borrowers must have gone through the same. It is always important to analyze a product from end user perspective rather being a seller/marketer. The objective of this blog is ... Read More
Credit Score – 7 Jargon You Should Know to read CIBIL Report
Credit Score is like an alien concept for the borrowers. Normally, a borrower checks the absolute Credit Score Value and create a notion about the same. Some of the credit experts have created a very wrong notion among borrowers. This misconception is that if the Credit Score is more than 750 then NO Force in this world can reject the loan. It is wrong understanding. I can share examples of borrowers whose loans were rejected even with a score of more than 800. There is no doubt that credit score of 750+ is very good but it does not guarantee the loan. In my post, How to read CIBIL Score and ... Read More