Preeti Roy

Financial Analyst

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Cibil Score Overview

Cibil Scores are basically a rating provided by the credit bureau “CIBIL”. This score indicates the responsiveness of the borrower in paying off his/her debts timely. It is necessary for a borrower to have a cibil score at the time of taking a loan because this score becomes a basis to judge the creditworthiness of the borrower by the lending institutions. To maintain a high cibil score, it is important that the borrower practices the following activities-

Pay his/her debts timely

Not to apply for multiple credit cards as paying them would become overwhelming

Opt for secured loans

Avoid payment from credit cards as much as possible, especially at the time of payment of loan.

These above points needs to be strictly followed by the borrower as it is very difficult to increase a bad cibil score once it appears.

There is a great article that imparted me the knowledge of cibil score. You can read this and many more articles at http://www.loankuber.com/content/cibil-score/

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Does peer to peer lending provides loan to low cibil score range borrowers?

Cibil score is the prominent eligibility criteria for any bank to consider lending the loan amount. A score below 750 is mainly not considered by lending institutions. And many borrowers are not funded due to this eligibility scarcity. This is where peer to peer lending comes into the picture.

P2P lending is a method of debt financing that enables individuals to borrow and lend money within the group and without any banks/ financial institutions. This helps both the investing person providing the funds in terms of higher returns than the market and the borrower receiving the loan, which may have been rejected by the bank due to their stringent appraisal criteria. It looks beyond the regular cibil score range and instead factors in many more criteria like the annual income, job security, bank account etc.

The article explains that does peer to peer lending provides loan to low cibil score range borrowers and made me inform so much more about it. This article proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

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How to improve cibil score?

For a layman, it gets very difficult to assess what criterias constitute the cibil score. A financially handicapped person has no where to infer this detail but to be unaware of all the actions that could enervate him and result in lowering of his scores. I read an article recently that tells what actions are predominantly responsible for these scores.

Credit score is nothing but a reflection of your credit habits through the loan transactions and repayments. The most important factor is the repayment history which carries the highest weight in the score. Also every time an individual’s credit score is checked by a bank/ financial institution, it gets recorded in CIBIL’s database and also reflected in a credit report. Since repeated inquiries of seeking credit indicate an individual’s excessive reliance on credit, it adversely affects CIBIL score.

The article explains how to improve cibil score and made me inform so much more about cibil scores. This article proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

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How Credit Card Default impacts CIBIL Score?

Cibil score is the primary thing a borrower should be concerned about. It judges your entire financial worthiness. It does not even spare a single due at any point, not even dues on credit card. So one should be super cautious about this.

The CIBIL score ranges from 300 to 900 with the 300 score being rated for the riskiest borrower and 900 going for the borrower with best credit history.The credit card bills and loan EMIs should always be paid timely and without delay timely. Since repayment history is one of the major factors affecting your score, timely repayments will translate to a high credit score.

The article on cibil check made me inform so much more about cibil scores. This article proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

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Improve your CIBIL Score with Secured Loans

Very few people actually knows that secured and unsecured loans have different weightage in comprising the cibil score. Personal loans, credit cards come under the category of unsecured loans. For a lender, an unsecured loan signifies a greater risk of lending to you. This is why the higher ratio of unsecured debt adversely impacts your credit score.

A Loan Against Property (LAP) is always considered a reliable loan because the value of the property/ security is sufficient to cover the amount of the loan outstanding and its interest. Banks lend only a set percentage of the property value, also commonly referred to as Loan-to-Value ratio (which ranges between 65-75 percent). The rest is invested by the borrower from his own funds. Further, since the borrower’s own funds are also at stake, the repaying tendency is higher. This helps you improve your credit score.

The article on how to improve your cibil score with secured loans made me inform so much more about the cibil score weightage. This article proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

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Protect your Credit History from Identity Theft?

As we can gain from the term itself ‘identity theft’, is when a person steals someone else’s identity and uses it for his/her own benefits. But here, we are dealing with money, which makes the scenario more pressing. Identity theft happens when someone else uses your personal identification information to get loans and credits from the banks. And if that person fails to pay back the amount taken or pay the credit card charges, then you will be liable for the outstanding amount. This goes straight into your ‘Credit Information Report’, which further produces poor CIBIL score and leaves back a poor CIBIL history.

The article on cibil check about identity theft made me inform so much more about it. This article proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

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Why is it important to have a Healthy Credit Mix?

Just paying your dues on time cannot secure a perfect cibil score in future. A lot of other actions contribute to these scores. Some of these are listed here-

- Your ability to borrow long term loans as it reflects your ability to pay back the debt. Further, the continuing repayments on time make your cibil score check reflect your timely repayments over a longer period.

- The presence of installment credit and its timely repayments helps a better credit score since the banks perceive such borrowers as less-risky borrowers in terms of default.

The article about how important it is to have a healthy credit mix on cibil score check for  made me inform so much more about cibil scores. This article proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

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Some Investing Options to Save Tax

Investing money is one thing, but investing money in those options where you could avail a tax deduction too is what will make you a pro investor. There are many fixed income products India where you could save on tax. Some are-

Equity linked savings scheme (ELSS)- ELSS refers to those mutual funds which invest more than 65% of the portfolio in equities and are eligible for tax deduction under Section 80C.

National Pension Scheme (NPS)- To promote NPS, Section 80CCD(1B) provides for an additional deduction of upto Rs. 50,000 for contributions made by any individual assessee towards NPS.

Read an example that is well illustrated on fixed income products India options to save tax. It has definitely proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

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Fixed income investment options- Saving for the Rainy Day!

“Tata steel board sacked Cyrus Mistry”, this statement can give chills to a working professional that private jobs don’t provide stability. It also raises the fact that one should keep funds for uncertain times. Let us look at some options where you could invest which offers liquidity and reasonable returns both:

Savings Account- This option provides liquidity at all times but struggle when it comes to interest rate which is average 4%.

Fixed deposit- This is vice versa of Savings account, it does not provide liquidity but surely a better rate of interest.

Debt mutual funds- Debt mutual funds invest their corpus into debt instruments/ NCDs of other companies and hence, offer better returns than term deposits.

There are many more options on fixed income investment options in this article I just read. It has definitely proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

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Balance Transfer & Top-up Facility on Mortgage Loan against Property

If one is stuck with high interests, he can avail a lesser known facility of balance transfer to some other bank with obviously less interest rates. So, this generally results in favorable interest rate change for you and resultant lower interest outgo. Many banks offer this facility to it’s customers.

On top of this, a Top-Up loan gives you the freedom to borrow money over and above the initial Loan amount.  Though different banks offer different terms for such loans, but top-up loans are generally preferred due to easier documentation and hassle-free processing, besides giving you tax benefits on such top-up loans as well.

The article on balance transfer & top-up facility on mortgage loan against property made me inform so much more about Balance Transfer & Top-up Facility. This article proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

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Availing Bank loan against GPA property

People often misconstrue and don’t register their property to save additional money. It may save some lakhs but then is regarded as a general power of attorney property. This means that the ownership is not transferred but he/she can act only on behalf of it.

This arrangement does not interests the banks and lending institutions because the GPA grantor can cancel this any time. It is very crucial to register the property taking under consideration the given advantages. The process of registering the property gives the buyer the legal rights over the property and aids to avoid any property disputes.

Read an example that is well illustrated on Loan Against GPA Property. It has definitely proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

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NBFC and HFC providing loan against property

India is one of the most rapidly evolving economies of the world. India’s financial space is also developing at a speed that is quite decent.

There are large numbers of options available to customer for their credit needs. You don’t need to rely on banks only to get financing. There are large number of NBFCs in the country that provide loan against property. These NBFCs are sometime even bigger than some of the banks and have created a great reputation for themselves in short span of time. They also have less rigid policies compared to the banks and are one of the first choice for consumers for his credit needs.

The article also made me inform about the Legal acts associated with Land Deals in India. This article on Loan against property in Delhi proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

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Where can I invest as small as Rs. 50,000?

Investing is one of the most important habits that you can develop as an individual. With current rates of inflation in the market you need to start investing as early as you can so that your money doesn’t depreciate in value over the years.

Even if you have a small amount to invest in, you have plenty of investment options available to you. You can invest your money in modern investment options like peer to peer lending platforms to start with your investment journey. Investing is a habit that is needed to be built with time and starting with a small amount is not a roadblock for any investor. The article on loankuber.com made me inform about overview of investment. This article on best short term investment  proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

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How to plan for retirement?

Retirement is one of the most important events in one’s life. It is quite emotional event for an individual to leave a place in which he was working for past 30 to 35 years. With increasing advancement in medical technologies and modern treatment, life expectancy is expected to increase from current figure of 66 in India.

You should plan for your retirement from as early as possible. You would need fund for better part of 20 to 25 years post retirement. You shouldn’t rely on others for your daily expenses post retirement. A retirement is a new beginning in your life and you should plan it in such a way that you get maximum out of it. The article on loankuber made me inform about how I should plan for retirement. This article on investment options proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

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5 Differences Between Bank Lending and Peer to Peer Lending

Application for a loan in a bank is a tedious process. Banks usually have stringent rules for lending to a borrower. Most of the time they treat borrowers as a number on their credit report.

This rigidness has resulted in huge set of borrowers being neglected by banks. Some of these borrowers are provided financing by NBFCs but still a large number of borrowers are left on their own. A new lending methodology has come into forefront in recent times. Peer to peer lending is quite different from normal banking. These platforms are quite flexible compared to banks and don’t treat a borrower just as a number on their credit report. The article on LoanKuber.com made me inform about differences between peer to peer lending and banking. This article on peer to peer lending companies in india  proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

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P2P lending v/s Real estate

Real estate investments have been considered as one of the most popular investment strategy adopted by Indian consumer. It is a common misconception that you can double or triple your money by investing in peer to peer lending companies in india for few years.

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Why borrow through Peer to peer lending?

If you have ever applied to a loan from bank then you must know that how tedious is to get a loan from a bank. Banks usually look for cream among borrowers who have a good income, experience, longevity and good repayment track record. Learn more on this article p2p lending india.