Don't sweat it. Easy hacks to get a healthy CIBIL score

There are no quick fixes to become credit healthy overnight and there is no magic wand that will make all your credit score woes go away. However we do have a few suggestions that can help you in being credit healthy without break into a sweat or racking your brains. You could use one or more of these suggestions simultaneously to work towards getting a good CIBIL Score.

Check the credit limit: Your credit card limit is Rs. 100,000 and you run a bill of average Rs. 70,000 per month but you manage to pay it all on time so there is no problem; right? Wrong!

Credit utilization ratio is a ratio between the total available credit limit available to a person and what he/she utilizes per month. A high credit card ratio even if you are able to pay it on time is not good for the CIBIL score as it is an indicator of credit hungry behavior. There are two ways of dealing with this; the first obviously is to lower the credit card spending and the second could be to get a bigger credit limit. One can get in touch with the existing card issuer and get the credit card limit enhanced; this is possible if the card holder is eligible for a bigger credit limit. If this is not possible then one could explore the option of getting another card issued, this will increase the overall credit limit available and the user can spread his/her expenditure across both cards.

Remove the irritants from the CIR: Sometimes there are some old issues that we seem to have forgotten but unfortunately (for us) Credit Information Report (CIR) continues to remember it and carries it forward. These could be an issue like an old credit card due which was not paid and has since then grown bigger due to fines and charges being levied over and over again. Also there could be an open loan which has been paid in full but an NOC has not been taken. Sorting out any such issue may take time and requires patience but removal of any such irritant is bound to have an immediate positive impact on the CIBIL score.

Check for mistakes: There are times when the cause of a low CIBIL score may not be your own mistake but a mistake by some other agency. This can be detected only if one scrutinizes their credit report carefully. Just point out the mistake to the credit bureau and they will do the needful and get in touch with the required agency to remove the error from the CIR. There is simple mechanism available both online and offline for removal of any mistakes from a person’s CIR.

Avoid making unnecessary loan enquiries: This is not something that you should do but something that you should not do! Do not make any loan enquiries till you are sure that you require a loan and till you are fairly certain that you meet the required terms and eligibility criteria laid down by the lender. When any loan application is made, the prospective lender seeks the applicant’s CIBIL Report; this is known as a hard enquiry and impacts the CIBIL score negatively. A loan rejection means that one has to apply for a loan again which will generate another hard enquiry. Finding out about a bank’s policies for loan sanction is not difficult, if you really need a loan then apply to a bank where you are likely to get the loan sanctioned. Not being credit hungry is good for credit health!

Nothing beats paying on time: This is the simplest yet the best and almost the most important aspect to be credit healthy. This cannot be a onetime effort but it has to be a habit; being disciplined in payments goes a long way in keeping the score in the green. A delay is generally due to being forgetful or lacking discipline so set up reminders, put in auto debit mandate, use post its or whatever it takes but do not delay payments.

So hopefully this Labor Day you can get a good credit score or you can at least strive towards one by following one of the above simple yet effective ways.

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

Applying for a job in SBI? Check your credit score with Cibil first

Hyderabad: If you want to apply for a job in 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 and sales) and junior agricultural associates in clerical cadre, has stipulated that candidates with poor credit record will not be eligible for jobs at the lender.
According to an advertisement released recently by the public sector lender, candidates against whom there is an adverse report regarding character and antecedents and moral turpitude are also not eligible to apply for the posts.
SBI has advised aspirants to check their credit history with the Credit Information Bureau Ltd (Cibil) before applying for posts in the bank. 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 bank 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 United Breweries Group chairman Vijay Mallya’s Kingfisher Airline to which the SBI-led consortium extended loans amounting to Rs.9,000 crore.
“While we are well aware of, and fully appreciate, the concern for the alarming proportion of NPA (non-performing asset) 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,” the 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 SBI to look into the matter and tell the authorities concerned to add an appropriate rider to ensure 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.livemint.com/
Reposted :- http://credit4loan.com/

Home loan delinquencies more than halve in last 5 years: Cibil

MUMBAI: The largest credit information company Cibil has said the proportion of bad loans in the housing segment has more than halved in the past five years.

The percentage of non-performing assets (NPAs) from the home loans segment has dropped to 0.57 in March 2015 compared to 1.06 at the end of 2010, it said in a report.
The company attributed the lower delinquencies to availability of timely credit information for lending.

It can be noted that all the lenders check the previous history of potential borrowers with a credit information company like Cibil before taking a call on the loan proposal. The past history also helps the lenders in pricing the product.



The Cibil report said Mumbai and Pune account for most such enquiries from banks for availing the details of potential borrowers, which is followed by Delhi and Bengaluru.

It said 3.9 lakh new home loan accounts were opened in the January-March quarter of this year.

It can be noted that in the face of slowing demand from the corporate segment, all banks have been focusing strongly on the retail segment, and within that the high value home loans have been a favourite.

Even though a longer tenure loan can result in potential asset liability mismatches, banks are interested in this stream as the segment is considered very safe because of the low probability of NPA.

On credit cards, which constitute a part of unsecured lending, the Cibil report said there was a growth in new accounts to 10.8 lakh for the January-March period, as against 8 lakh in the year-ago period.

On the asset quality in this segment, Cibil said there has been an improvement to 1.06 per cent as of March 2015 as against 3.27 per cent at the end of 2010.

The financial capital leads in the credit card applications as well, followed by Delhi and Bengaluru, it said.

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

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/

When netas are wilful defaulters, they cut across all party lines

If the Kingfisher Airlines loan default case unravels the alleged nexus between bankers and businessmen, a close look into the list of wilful defaulters disclosed by Credit Information Bureau (India) Limited (CIBIL) and banks spells out names of at least five politicians, across the political spectrum, who are directors in companies that owe around Rs 900 crore to Indian banks.
The Indian Express looked into cases where the default amount is in excess of Rs 50 crore for one individual.

A detailed questionnaire sent to the five individuals or their companies, seeking their responses over the defaults, went unanswered.
In terms of the loan default amount, Jivraj Surani of JB Diamonds tops the list. The former Gujarat BJP vice-president who was a close aide of former Gujarat CM Keshubhai Patel owes Rs 466 crore to three banks as per the CIBIL report.
In 2007 Gujarat state elections, Surani campaigned for Gujarat Parivartan Party headed by Patel and later joined the Congress.
Next on the list is Shibaji Panja who set up RP Infosystems in partnership with Kaustuv Ray. Reported to be an aide of West Bengal CM Mamata Banerjee (who in the past has denied any association with him), Panja was also a member of the task force attached to the state’s department of information and culture and a member of the tele-academy set up by the chief minister. Panja has been announced a wilful defaulter by five banks for loan default aggregating to over Rs 180 crore.

In February 2015, Panja was arrested for allegedly fraud related to a Delhi-based company amounting to around Rs 18 crore. Earlier, the economic offences wing of Delhi Police had issued a lookout notice in that regard. The arrest followed a complaint by an official of Delhi based IFCI Factors, an IFCI group company, where it alleged that Panja, who was the managing director of RP Infosystems, had taken a loan of Rs 10 crore against a bill pending payment in 2010.

Another politician on the list is Kadir Rana who was elected to the Lok Sabha from Muzaffarnagar seat in 2009 as a Bahujan Samajwadi Party candidate. Kadir Rana’s name appears on the list of wilful defaulters for loan default of over Rs 90 crore by two of his companies — Rana Udyog and Rana Global. Along with these two companies, Rana Alloys and Haridwar Iron and Ispat Rolling owned by his close relatives have also defaulted on loans amounting to around Rs 135 crore. In 2014 Kadir Rana, along with several others including his relative Noor Saleem Rana, were chargesheeted by the SIT for Muzaffarnagar riots. Noor Saleem Rana is also a director on one of the Rana Group companies. The list also includes the name of Jasbir Singh Khangura or Jassi Khangura, a hotelier and former Congress MLA from Halqa Qila Raipur constituency in Punjab (2007-2012), for having defaulted on a loan of Rs 70 crore taken by his firm Macro Dairy Ventures which sells products under the brand TruMilk. He contested from Dakha constituency of the state in 2012 but failed to get re-elected. Khangura came from UK to India in 1990s and set up Hotel Park Plaza in Ludhiana. He is married to Raman who is granddaughter of former Punjab CM Partap Singh Kairon. Another politician whose name figures in the list is Ashok Kumar Bajpai, a former Congress party member who later joined BSP in 2007 and then joined Janata Dal (United). Bajpai’s name has been listed alongside the loan default of Rs 63 crore by Parerhat Gas. Bajpai’s mother, Rajendra Kumari Bajpai, was also a Congree leader and she served as minister of labour and social welfare, was a close confidant of Indira Gandhi. Rajendra Kumari has also been the Lieutenant Governor of Pondicherry.

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

Directors of over 1,000 listed companies have links to wilful defaulters

Mumbai:
At least 1,219 directors on the boards of listed companies have links with companies that are so-called wilful defaulters.
Why is this number significant?
Last month, capital markets regulator Securities and Exchange Board of India (Sebi) said that it was looking to place capital-raising restrictions on companies with links to wilful defaulters. “No issuer shall make a public issue (of securities) if the issuer company or its promoter or its director is in the list of the wilful defaulters,” said the market regulator’s press note released on 12 March.
A wilful defaulter is a company or individual that does not plan to repay a loan, diverts funds to a purpose different than the one for which it was borrowed , or sells the asset acquired with the borrowed capital without the lender’s knowledge.
As of June 2015, the latest period for which data has been collated by Prime Database, at least 1,219 directors who served on the boards of companies which were declared wilful defaulters also serve on the boards of other listed companies.
That number is likely to have increased.
The number of wilful defaulters rose to 7,129 as of December 2015, from 6,458 in June that year, according to information available with Credit Information Bureau of India Ltd (Cibil). Prime Database’s numbers include only those firms tracked by Cibil. Three other repositories also hold defaulter information: Experian Credit Information Co. of India Pvt. Ltd, Equifax Credit Information Services Pvt. Ltd and High Mark Credit Information Services Pvt. Ltd. There are 1,000 entities in the other three, including overlaps.
There is a debate if all directors should be painted with the same brush.
A January 2015 Sebi discussion paper said that “even though independent directors/nominee directors are distinguished from other promoter directors of companies that are wilful defaulters, such directors are brought within the purview of the Master Circular for the purpose of declaring them as wilful defaulters”.
The same paper, however, also noted the Gujarat high court’s observation that extending this to all directors is not appropriate. Experts point out that lenders and private equity investors also have board representatives in the form of nominee directors. If these entities have advanced capital to a company, they may have taken a board seat. But they would have had limited control if the company decided to default.
Final Sebi regulations are awaited in this regard.
In case companies want to completely dissociate themselves from anyone who has been a director on the board of a company that is a wilful defaulter company, over 1,000 listed firms will need new directors.
As it is, there is a shortage of directors after recently introduced rules limited the number of multiple directorships a person can hold. Individuals can serve on the boards of only seven listed companies at the same time. These tighter rules were announced in February 2014. Whole-time directors cannot be on the boards of more than three listed companies. And independent directors can only serve two consecutive five-year terms.
“There is a demand for good directors, irrespective of the impact these guidelines have on demand,” said Amit Tandon, founder and managing director of proxy advisory firm Institutional Investor Advisory Services India Ltd (IiAS).
It’s not just directors who will be affected if Sebi decides to crack down.
The regulator has also said that no fresh registration will be granted to intermediaries who are in the list of wilful defaulters. Tejesh Chitlangi, partner at IC Legal, said that Sebi will have to be cautious in implementing the restrictions since an absolute prohibition on registering any entity having a promoter or key person tagged as a wilful defaulter may inadvertently impact those that have limited control over the company’s actions.
“This can substantially impact their future operations and hence should be dealt by Sebi on a case-to-case basis rather than creating absolute prohibition,” said Chitlangi.
The jury may be out on whether everybody deserves the same treatment, but a hard look at company boards may be overdue.

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