CIBIL Score Archives -

21 Dec

Obtain Personal Loan with Bad Credit in Delhi

Trying to obtain a personal loan is a terrible for most of us in any circumstances and, attached with a bad credit score or CIBIL score; it promises to be a hellish knowledge for everyone involved.

Low or bad credit rating efficiently ruins your chances of getting a loan from a financial institution because their outlook you as a bad egg, someone who may default on their repayments and can turn into a bad asset for them. Their base is merely on your history and a theoretical approach to credit assessment.

CIBIL is the premier scoring bureau used by Indian institutions.

What does bad CIBIL score, in fact mean?

A credit score is based on an individual’s complete debt and credit history; there are a variety of factors that have an effect on your CIBIL score like:

The repayment history (35%)

The amount you owe to lenders (30%)

Number of years of servicing debt (15%)

Number and amount of recent loans taken or applied for (10%)

The Credit Mix (10%)

One gets a “so-called” bad credit due to one or more of the following reasons:

When a borrower defaults in making any of the repayments

When a borrower extensively shops for a loan, but gets rejected repeatedly

When a borrower has never taken a loan in the past and there is no credit history to legalize.

Whenever one wants to benefit a loan, the financial institutions like banks do a background make sure on the borrower to determine if she/he is capable of making the payments and clearing their loan. CIBIL (Credit Information Bureau Limited) score is a number in the range 300 – 900. Higher the number, higher is your possibility of availing a loan and also at a better interest rate.

Mr. Gaurav Desai, a DU professor, recently applied for a personal loan to fund his sister’s marriage, but he was in for an impolite shock when it got rejected. He was shocked because he had by no means even taken a loan or a credit card in all his life to be deemed as a bad investment!

The problem here is that poor credit scores can be either your own making or just bad financial management/no credit history, which is why banks turn down so many loans.

So, how to acquire a loan with bad credit score?

The good news is, with the beginning of technology and finance gradually merging, bad credit scores don’t essentially mean that you cannot get personal loans. Many times they will reject loans based on bad credit scores, but fail to think the tons of information contradicting the bad scores that would otherwise make you eligible for a personal loan.

This approach ensures that individuals with a less favorable CIBIL score are also likely to get a loan through these platforms if they are credit worthy as their proprietary machine-learning algorithm generates a more holistic credit profile of the borrower.

This does not take away from the importance of maintaining a good CIBIL score, all efforts must be made to try and maintain a good CIBIL score.

13 Dec

6 Serious Events at the time of closing your Home Loan

Finheal
Home Loan
Tags: applying for the loan, CIBIL Score, EMI
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Are your creation prepayment of your house loan? Or, are you settle your mortgage with your bank? Keep in mind to do these 6 things at the time of conclusion!

Collect the documents

A person has to offer the original papers of the property while applying for the loan. Make sure that an entity collects the entire original document submitted to the bank after all the EMI’s are cleared. Once a person signs the permission that he has collected all the documents than he cannot responsibly the bank if any one of the documents is left to be collected.

Collect no objection certificate (NOC)

Once loan clean and documents are collected. An entity should get a NOC from the bank. This certificate states that all the dues have been cleared by the customer and no payment towards the loan is missing. The certificate should take in all the particulars of the property against which the house loan has been in use.

Get rid of lien on the property

In some states, the bank may have registered a deed with the registrar for the home loan if the credibility of the borrower is doubtful. Once all the dues are empty by the borrower it is necessary to come to an end the lien. The continuation of the lien will not allow the borrower to sell his property.

Update the CIBIL Score

A borrower of the loan should ask the bank to get his CIBIL score updated. It is necessary to update the CIBIL score because it makes easier to get the upcoming loans if the CIBIL score is good (i.e. 750+).

Obtain a new Encumbrance certificate (EC) from the registrar

Once a person has acknowledged NOC and cancelled the existing lien on the house loan. It is necessary to apply for EC certificate from the bank. This certificate gives detail about the financial transactions carried on the property. This will complete the home closure process.

Make confident you close your loan account and not resolve it.

Remember, if you do resolution with the bank on your awaiting loan amount then you CIBIL score will get impacted. No agency will amend the credit report. CIBIL agency checks the borrower’s credit report. CIBIL agency keeps a check all the way through a DPD i.e. Days past due how many months of payment are still undue. It contain the past 36 months of the credit information of a borrower. So once the sum is done, it will take 12-24 months to improve the CIBIL Score.

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