Personal Loan without CIBIL Credit Score!!

In today's financial scenario, Every individual seeks for a loan, Whether it is personal loan, home loan, business loan, machinery loan, etc.

Basics to get a loan are very simple:

Where if following documents are meet then person gets a loan

1. Basic KYC
2. Income Proof
3. Bank Statement

But very few people are aware that apart from this your cibil credit report is also require and equally important to get you a loan sanction in minutes.

Yes, It is true.

If anyone having CIBIL Credit Score less then 750, then it becomes very difficult to get a loan, while if someone having score more than 750+ and meeting above said documents criteria said to be a happy person with big smile on thier faces compare to people who has low cibil credit score.

It is always advisable people to check credit report and credit score first before approaching any financial institution to avoid further shock from those institutions.

Credit Score is easily available, ask Credit 4 Loan, And you'll get it quickly.

So, if applying anywhere for personal loan or any other loan, Kindly check credit score, 

Because it is always better safer then being sorry in the end

Top 5 Ways to Improve Your Credit Score

If you're planning to finance a car, there’s one number you can’t be without. You guessed it. It's your credit score, and it allows lenders to gauge your level of financing risk.
The most common credit scoring method used by major lenders is the FICO score, which assigns borrowers a score of between 300 and 850. The higher the score, the better the financing terms. If your score isn’t up to par, it’s not the end of the world. Here are five top tips on how you can improve it.
Check Your Score
Some of the best credit advice comes with the score itself. When you check your FICO score through a credit bureau, such as Experian, you’ll receive a list of specific factors that have influenced the score, for example “no missed payments” or perhaps “short credit history.” These tips can be invaluable for understanding how to improve your credit situation.
Checking your score periodically can also tip you off to harmful reporting errors, and even fraud.
Establish a Good Payment History
It’s no secret. Getting a great score means paying your bills on time, every time. Delinquent payments and collection accounts have a significant negative impact on score, and these can linger on your report for up to seven years. Here’s the good news. As you continue to pay on time, older credit blemishes will affect your score less and less.
Need help? Sign up for payment reminders, if available.
Manage Credit Cards and Pay Off Debt
Using credit cards can fast-track credit score recovery, but only if you manage them responsibly. It’s best to keep card balances low and pay them off in full each month, rather than carry them over. Cardholders should also aim for a “credit utilization rate” of 30 percent or below. This means you use 30 percent or less of the credit that’s offered to you. To find this rate, divide your total balances by total credit card limits.
For this reason, closing an unused card that’s in good standing can actually hurt your score, because it reduces your credit limits without changing the amount owed.
Don’t Take On Unnecessary Credit
Credit scoring evaluates your “credit mix,” which includes accounts like credit cards, auto loans, and mortgages. Using different types of credit can improve your score, but that doesn’t mean you should open unneeded accounts just to broaden this mix. A flurry of credit applications give lenders the wrong idea and adding multiple new accounts lowers your average account age—another important scoring factor.
Instead, think quality over quantity. Manage what you have, and scoring will reward you for older, responsibly paid accounts.
Correct Errors
Mistakes happen. If you find an error on your credit report, such as an account that isn’t yours or an inaccurate missed payment, you can dispute the error with the information provider and respective credit bureau. The dispute process takes time, but when resolved it can yield a significant change in your score.

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

Should borrowers switch to the new MCLR regime for loans?

The beginning of the financial year has brought good news for borrowers. The Reserve Bank of India (RBI) reduced repo rate by 25 basis points on April 5, and Marginal Cost of funds-based Lending Rate (MCLR), the new methodology for computing benchmark lending rates, came into effect from April 1.
MCLR is expected to make banks respond faster to policy rate revisions announced by the central bank. Given the current falling interest rate scenario, the immediate impact will be the lowering of rates.
While MCLR will automatically apply to new loans, existing borrowers can choose to switch to the new methodology after paying a fee. Existing and prospective borrowers will have to decide on moving to the new benchmark rate and choose a lender who fulfils their requirements.

To switch or not to switch
Loan experts feel that it's an opportune time to move to MCLR. "It makes sense to shift to MCLR as interest rates are on a downward slope. You should take advantage of whatever is available now. Even if you have to pay some charges, it could be worth it," says V.N. Kulkarni, an independent banking and management consultant. You might have to pay a conversion fee of 0.5-1% of the loan amount if you decide to move to the new regime.  Take a call after a cost-benefit analysis, like you would while evaluating loan refinance options.

MCLR is also expected to usher in transparency in loan pricing and revision. "Existing borrowers should move to the available MCLR with their respective banks.The new system of benchmarking is more dynamic and better regulated with the end objective of transmitting the monetary policy in essence without manipulation or leakages and ensuring compliance by banks," says Vipul Patel, Founder, Mortgageworld, a loan consultancy firm. While pros and cons of the new system will come to light over the course of time, he does not foresee any adverse impact on home loan borrowers for now.

However, you cannot dodge the risk of an upward interest revision. If the RBI were to hike policy rates in future, MCLR will prompt banks to swiftly follow suit.

Tread with care
New borrowers do not have to make a choice between MCLR and Base Rate—all new loans will be linked to the former. However, if you are planning to apply for a loan in the coming days, you must closely read the terms and conditions of your contract. Under the new regime, banks will use their discretion to decide the reset period—daily, quarterly, half-yearly or annual MCLR—applicable to home and mortgage loans. So, your home loan interest rate will be pegged to the MCLR basket chosen by your bank.
For instance, the State Bank of India has prescribed an annual reset clause. You will find a change in your rates once a year on the date mentioned in your contract. While this means you will not derive benefits of subsequent rate reductions during the year, you will also be protected from any rate hikes during the period. Moreover, you always have the option of switching to banks that may slash rates later.

The flipside
Despite being introduced as the panacea for all ills afflicting the home loan space, the MCLR regime is not without its share of complexities and limitations. In fact, the flexibility that banks enjoy within the MCLR system could create a fertile ground for variable pricing, say experts. "Banks have the option to fix the margins between the MCLR and the lending rate, which is nontransparent. The actual rate for the consumer may vary even within the same bank, depending on various internal lending criteria and product constructs," explains Patel. Banks are yet to provide clarity on these issues.
Therefore, while new borrowers do not have to make a choice between Base Rate and MCLR, the variations in their banks' approach within the MCLR system necessitates careful evaluation of the loan contract. "An annual reset is a close equivalent of annual fixed rate and quarterly reset will fluctuate depending on policy decisions," says Patel. While pointing out that the decision will depend on the borrower's cash flows and risk appetite, he picks quarterly reset option over annual reset in the current declining interest rate scenario. This would be applicable even to existing borrowers contemplating shifting to MCLR.

 

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

Reposted By :- http://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/