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Credit Bureaus from the eyes of the Borrower

Credit Bureau assigns a 3 digit number called as credit score which ranges from 300 to 900. It serves as a numerical representation of a borrower's creditworthiness, reflecting their financial behaviour. Lenders utilize this score to assess the risk associated with granting loans. A high credit score can lead to better loan terms, including lower interest rates and higher credit limits, while a low score might result in loan rejections or unfavourable terms. Credit Bureaus are vital in the financial…

Housing Finance: Traditional vs. Modern Lending Practices

The dramatic transformation of the housing finance landscape, from traditional to digital and customer-centric approaches, underscores the increasing importance of analytical skills. As lending methods evolve, professionals must evaluate complex financial data and credit reports to make informed loan decisions. This analytical capability is crucial for assessing creditworthiness, managing risks, and optimizing loan performance in the modern market. This shift has been influenced by technological innovation, updated norms and regulations, and a move towards greater market orientation. Additionally, Fintech lenders are leveraging…

The Case for Merging MITC and KFS

The Most Important Terms and Conditions (MITC) and the Key Facts Statement (KFS) are crucial documents within the lending framework, provided to borrowers prior to availing finance. These documents are mandated by the Reserve Bank of India (RBI), both documents outline the borrower's obligations and ensure they have a clear understanding of the terms and conditions along with the key facts of the loan. Currently, MITC and KFS comprise a total of 42 points, with 25 of those points overlapping…

Lender survey report on moratorium

Survey. lendersDownload As mentioned in our previous blogs on moratorium - We designed and constructed a survey, to interview industry leaders, with an aim to learn from their experiences of offering moratorium to their customers. Interviewing several business leaders at mid- size to large-scale, non-banking finance companies, housing finance companies, lenders with financial inclusion focus, and newer Fintech companies, our study scope encompassed all retail lending products. The objective is to learn from these approaches, experiences, outcomes, and bring…

Lazy Password Syndrome

Laziness is a universal syndrome – even the most active person, at some time succumbs to it! Strangely, it hits us in the most unlikely manner and in the most unlikely aspect of our life. The other unique aspect of this syndrome is we often allow it to creep up on us and then justify its impact. Technology is meant to make life easier for us, protect us and our data and ensure privacy of personal information. From our simple…

Getting married? Don’t fall for some credit myths!

When you take your vows and promise to be true in good times and in bad, do you end up saying “I do” to your spouse’s bad credit history as well? Marriage is a union of two souls and from a financial standpoint, it means saving for the future, buying a dream home or planning for your child’s education. Marriage can also have an impact on your credit score. Whilst, your “marital status” as such does not impact your credit score, there are certain myths that…

The Unholy Trinity Recall

6/6/2020 I hope you found my first blog relevant and it made useful reading. Taking reference of the trinity analogy, I believe we had yet another unholy trinity event. Rajasthan experienced an intense locust swarm invasion attack, affecting about 90,000 hectares across 20 districts, which disappeared as mysteriously as it appeared. While the Corona pandemic continues, we had two cyclones, back to back. The Orissa – West Bengal cyclone was devastating and caused many more deaths and much more damage – the more recent one on the west coast was…

Moratoriums and the unholy trinity

Hi, This is the first of a series of initiatives we are taking to address the moratorium announced by RBI. The focus is to create awareness amongst borrowers, more the retail borrower, and thus enable a more informed decision and also to put forth an independent unbiased view of the impact and consequences of the two stage moratorium. At this stage, of course we do not know if there will be a third moratorium and if so, in what shape and manner. …

Loan application rejected – What’s next?

Have your ever applied for an auto loan, a home loan or a personal loan? What if the loan application got rejected? What to do next? Rejection of any kind is one of the greatest fears that lies within us. But there is also a way to address this. Put on your thinking cap to understand the few ways on what to do next when your loan application gets rejected. Know and understand: Check with the credit institution to know the reason for the rejection-read it…

Moratorium – ” a solution or a problem”

If ever there was a googly or a curve ball – its COVID – 19. Call it whatever you want – even call it World War III – against an unseen enemy, across the world, no end in immediate sight and a truly global war across religion, cast, creed, gender and country. Everyone is talking about the new “normal” – and the problem is no one knows what the new normal will be. Or when will all this end…leave alone how! Economic disaster, financial…