Not just horoscope, your CIBIL score can also impact your marriage

Apart from taking stock of family, personality, compatibility and pay packages, families are now also concerned about the CIBIL score of a prospective groom.

Are you a bachelor living in Delhi and planning to get married anytime soon? You might be earning well and even consider yourself an eligible bachelor, but are paying your credit card bills and EMI payments on time? This affects your CIBIL score, and may also have an impact on your marriage prospects.

Apart from taking stock of family, personality, compatibility and pay packages, families are now also concerned about the CIBIL score of a prospective groom before getting their daughters married. Detectives are also being hired to get confirmed information about the CIBIL score.

And as per the trend, it is no less important than matching of horoscope, which is a custom in Indian marriages. According to experts, CIBIL score of a person shows the liability on him and also tells if he is capable enough to repay a loan.

Actual Article Link - http://zeenews.india.com/india/not-just-horoscope-your-cibil-score-can-also-impact-your-marriage-2098532.html

For Credit Score Improvement - www.credit4loan.com

CIBIL to look at bringing in more data on credit behaviour

With its MFI credit information bureau getting ready for launch in the first quarter of 2016-17, the Credit Information Bureau (India) Ltd (CIBIL) is looking at possibilities to bring in more credit behaviour data by taking information from the telecom and utility service providers.
The trends are in such a way that even the social media behaviour of the customer could be used to analyse the credit behaviour, used by the banks, said senior officials from CIBIL.
Speaking to reporters on the sidelines of the Sixth Annual Credit Information Conference in Chennai, presented by CIBIL and TransUnion, M V Nair, chairman of CIBIL, said, "We are looking at launching the MFI Bureau in the next quarter."
The bureau is expected to help the Micro Finance Institutions (MFIs) to offer credit faster and better based on the credit reports and scores of CIBIL. This would also increase CIBIL's database, adding more customers of MFIs to it.
The way forward could be getting credit behaviour of the customer from their payments to the telecom service providers, as a large number of population in the country has mobile phones, and payment to the utilities such as the electricity board, said Satish Pillai, managing director and CEO of CIBIL. He added that a committee set up by Reserve Bank of India (RBI) to look into the alternate data available from the telecom companies and utilities has submitted its report and is under the consideration of the banking regulator now.
There are also possibilities of analysing customer behavior patterns of new customers if they have presence in social media, they added.
The company said that the way forward is to support financial inclusion and making customers aware of the credit scoring and its importance so that there would be credit discipline.
The credit story of the retail customers, especially in the credit card segment, has been better in the last two to three years and the non performing assets (NPAs) in some of the credit card segment is in a historical low, they said. This, along with a segment growth of 30 per cent offers good opportunity for credit cards at present.
The company has also launched a new product, CIBIL iScan, to help the banks to reduce the risk in current account business. The product, leveraging the repository of Commercial Bureau information to provide CIBIL members with precise credit history details of their current account applicants.
The RBI has laid down mandatory processes for curbing losses to the industry due to diversion of fund and as per the mandate, banks are required to obtain a No Objection Certificate from the financial institutions extending credit facilities to the customer before opening of a current account.



Author :- http://www.business-standard.com/
Reposted By :- http://www.credit4loan.com/

IBM Security to safeguard CIBIL data against cyberattacks

NEW DELHI: Credit Information Bureau India Limited (CIBIL) has partnered with IBM Security to secure its critical business systems against cyberattacks. Under the agreement, IBM Security Services will provide a customized security operations framework to monitor real-time threats and help CIBIL proactively identify fraud.

CIBIL collects credit information pertaining to borrowers from banks and credit institutions which are its members. It then collates this information into credit reports and credit information solutions and provides them to banks and credit institutions to help evaluate risks, while lending to customers.

IBM Security Services will provide round-the-clock proactive security log monitoring and real-time validation of suspicious threats using IBM X Force Intelligence. The company has also built an integrated Security Operations Center (SOC) for incident reporting and management, which will detect and monitor security events and phishing attacks in real-time. The CIBIL website will also be monitored in real-time with daily scanning for signs of malware infections.

An individual's CIBIL report and CIBIL TransUnion score, other than his/her income, are two of the most important tools used by lenders to evaluate applications for any loans or credit cards.  

Author :- http://timesofindia.indiatimes.com/

Reposted By :- http://credit4loan.com/

Product crack: CIBIL TransUnion Score and Credit Portfolio Insights on ICICIdirect.com

ICICI Securities Ltd and Credit Information Bureau (India) Ltd (Cibil) have started an online facility available through ICICIdirect.com, where customers can see their Cibil TransUnion Score and individual ‘Credit Portfolio Insights’. It enables customers to see their liability portfolio alongside their investment portfolio, and gives them a personal net worth that can help make better financial decisions.
WHAT IS IT?
This is an additional facility that ICICIdirect.com customers can access. If you go into your account and go to the portfolio tab, there is a link that says ‘My Networth’. Under that, along with assets or investments, there is a tab with liabilities or loans. Under this, you get an aggregate of all the current outstanding loans (credit card, home, personal and so on) from both banks and non-banking finance companies (NBFCs). Once you confirm your details and pay the Rs.499 annual fee, you will be able to get a monthly update of your outstanding liabilities along with the Cibil credit score in your ICICIdirect account.
The fee is applicable for 12 months and each month, the liabilities data gets updates automatically from Cibil’s database. As soon as you have paid, the database checks for a match at Cibil. If there is a match, within 24 hours you will be able to see details of all your loans.
WHAT’S GOOD...
For ICICIdirect.com customers, it works well to be able to see investments and liabilities in one place. Your net worth tells you what the balance value of your assets is after netting out liabilities. So, you can tell in one glance whether the assets you have are enough to cover your outstanding liabilities. This, in turn, can help you make your next financial decision in a more informed manner.
Typically, if your liabilities side is lighter, you may be more willing to take risk on your investment side. If, on the other hand, you find that your current investments aren’t enough for your liabilities side, then future investments might need to be in more safe and fixed return securities.
The liabilities and loans get aggregated across banks and NBFCs, and you are saved a lot of effort in getting the data from different banks and cards. Along with a summary of the loans you have taken, you also get to see your Cibil credit score—this will help in understanding your position if you want to take a new loan. A credit score above 750 is considered good by lenders.
...WHAT’S NOT
Seeing your liabilities and investments on one screen and being able to understand your net worth will enable you to make financial decisions in a more informed manner. But while liabilities have been included in the feature, for a complete net worth, investments in other asset classes such as alternatives and real estate have not been included. Hence, the picture is still not complete. Also, you need to be a customer with ICICIdirect and have a valid login for an account to be able to access this service.


Author :- http://www.livemint.com/
Reposted By :- http://www.credit4loan.com/

Try credit info firms for data on defaulters: RBI to RTI query

The Reserve Bank of India (RBI) seems to be confused about how to respond to queries related to the disclosure of wilful defaulters.

While the regulator had earlier dismissed a query filed by BusinessLine under the Right to Information Act, 2005 saying it did not have the resources to compile the list of defaulters, a second reply from another desk in the RBI has passed the buck on to credit information companies such as Credit Information Bureau (India) Ltd (CIBIL).

“Banks and financial institutions have been advised to submit the data regarding wilful defaulters and defaulters to Credit Information Companies and not to the RBI from December 2014 onwards. Therefore, we do not have the information,” the RBI said, in response to an RTI filed by BusinessLine.

In an earlier reply, dated April 7, the regulator had said: “Compilation of the same (list of wilful defaulters) would disproportionately divert resources.”

This comes even as pressure builds on the central bank to put in place a system that would name and shame wilful defaulters. The Supreme Court had recently said that it was in favour of making public the list of defaulters. The apex court has observed that “the RBI is supposed to uphold public interest and not the interest of individual banks”, nor is the central bank in “any fiduciary relationship with any bank”.

However, the central bank has so far refused to make the names public on the ground that it would affect companies’ health if they are in genuine difficulty and “may accentuate the failure of the business rather than nursing it back to health”.

Various bank associations and unions are demanding a more pro-active response by the RBI. “If publication of the names of defaulters would defame them or result in loss of business, why is no such consideration being shown for the common man who avails a bank loan? …when it comes to industrialists, all soft options are being advocated,” said a statement from the All India Bank Employees’ Association.

More than 5,600 defaulters

According to one estimate, there are more than 5,600 wilful defaulters, who together owe more than ₹60,000 crore to banks.

Indian National Bank Employees’ Federation General Secretary Subhash Sawant said the RBI’s argument that it cannot allot resources to draw up a list of defaulters does not hold much water because banks have been computerising their operations for the past 15 years. All the information is available at the click of a button.

Author :- http://www.thehindubusinessline.com/

Reposted By :- http://credit4loan.com/

Applying for job in SBI? Check you credit historyApplying for job in SBI? Check you credit history

If you want to apply for a job at State Bank of India (SBI), any default on loans or credit card payment will render your ineligible.
SBI, which is in the process of recruiting Junior Associates (Customer Support & Sales) and Junior Agricultural Associates in clerical cadre, has stipulated that candidates with poor credit record will not be eligible for jobs at the country’s largest lender.
According to an advertisement released recently by the public sector lender, candidates against whom there is or are adverse report regarding character and antecedents, moral turpitude are also not eligible to apply for the post.
SBI has advised aspirants to check their credit history with CIBIL before applying for posts in the bank.
Credit Information Bureau Ltd (CIBIL) collects and maintains records of an individual’s payments pertaining to loans and credit cards.
“Candidates with record of default in repayment of loans/ credit card dues and/or against whose name adverse report of CIBIL or other external agencies are available are not eligible to apply for the post,” SBI said.
The move prompted some bank employee unions to request the banks to exempt students who have availed education loans from such rules.
The development comes against the backdrop of lenders, including SBI, facing flack for mounting bad loans, including the one related to Vijay Mallya’s Kingfisher Airline to which the SBI-led consortium extended loans now amounting to Rs 9,000 crore.
“While we are well aware of, and fully appreciate, the concern for the alarming proportion of NPA severely affecting the financial health of Banks, we think there would be a good number of candidates who have availed themselves of education loan from SBI or from any other Bank for acquiring requisite qualification/s necessary to become eligible to get hired by potential employers, including banks,” Bank Employees Federation of India (BEFI) said in statement.
“Such borrowers (those availing education loan) should not be equated and considered at par with “wilful defaulters” in the strict commercial sense of the term. It is very natural that this group of borrowers can start repaying their debts only when gainfully employed,” it added.
“Closing the doors of employment to them would not only put them to hardship but would also adversely affect the prospects of recovering the debts by the concerned lending institutions,” it said.
BEFI requested the SBI to look into the matter and advice the authorities concerned to add an appropriate rider to ensure the applicants who have availed education loan are not pushed out of the range of consideration for recruitment in SBI or in any other Government lender.
Author :-  http://www.dnaindia.com/
Reposted By :- http://credit4loan.com/

Get CIBIL score right, ensure your application is not rejected

“Most people do not know that there is such a thing as a CIBIL score. They come in thinking that if they are currently earning enough, then getting a loan will not be a problem. Then they get upset when their loans are rejected because of a low score,” said an ICICI Bank manager, who did not wish to be named. Credit Information Bureau (India) Ltd. (CIBIL) is a credit information company licensed by the Reserve Bank of India .

“CIBIL collects and maintains records of an individual’s payments pertaining to loans and credit cards. These records are submitted to CIBIL by banks and other lenders, on a monthly basis. This information is then used to create Credit Information Reports (CIR) and credit scores which are provided to lenders to help evaluate and approve loan applications,” the company says on its website. “All loan applications are based on a CIBIL score. This also creates a chicken and egg situation since you do not get a CIBIL score unless you have taken credit at some point,” Mr. Gaurav Chopra, co-founder of Indialends, told The Hindu.

There are a host of issues surrounding the credit score that consumers do not know about, Mr. Chopra explained. “People may know that their credit history is being tracked, but they don’t know there is a single score. They don’t know about the 750 limit. They don’t know that, if their loan application gets rejected, then that further lowers their score. They don’t know the various factors that affect their score.”

The ‘750 limit’, as confirmed by many banks and by CIBIL , means that banks will in most cases only give loans to borrowers with acredit score of 750 or more. The score ranges between 300 and 900. According to CIBIL, there are four main factors that affect your credit score. The most obvious of these factors has to do with your payment history. “Making late payments or defaulting your EMIs or dues (recently or consistently) shows you are having trouble to pay your existing credit obligations and will negatively affect your score,” says CIBIL.

In addition, consistently high utilisation of your credit limit on your credit card, and a resultant large balance in your current account, is likely to negatively affect you score.

The mix of your loans also makes a difference. “Having a balanced mix between secured loans (such as auto, home loans) and unsecured loans (such as personal loans, credit card) is likely to have a more positive affect on your score,” CIBIL says.

And finally, having many new loans or recently issued credit cards negatively affects your credit score as this suggests you are credit-hungry.

Several banks also confirmed that if an individual’s loan application is rejected due to the applicant having a credit score lower than 750, then that rejection lowers the score even more.

This may seem unfair, but it makes sense from the bank’s point of view, according to Mr. Sanjay Bhattacharya, a former managing director at State Bank of India.

“The CIBIL score is aimed at repeat defaulters. If a person with a low CIBIL score, which means that he is a repeated defaulter, asks for one more loan and is rejected, then his score will fall. The assumption is that he is trying to cheat,” he said.

There are several ways to improve the credit score. To start with, always make all your payments—including phone and electricity bills—on time and use credit conservatively.

The number of credit cards you carry significantly affects your credit score, said Mr. Chopra. The more cards you have, or the more card applications you make, the more credit-hungry you seem. “The best situation is to have a single credit card and to regularly spend on it and make the payments on time. Just that will get you a high CIBIL score,” he said.

Vigilance is also crucial. “Monitor your co-signed, guaranteed and joint accounts monthly. In co-signed, guaranteed or jointly held accounts, you are held equally liable for missed payments. Your joint holder’s negligence could affect your ability to access credit when you need it,” CIBIL warns.

Author :- http://www.thehindu.com/

Reposted :- http://credit4loan.com/