How Banks Evaluate CIBIL Score and Approve Home Loan Applications ?

CIBIL Loan ApprovalsMany of our readers have written to us to know How Banks Process and Approve Home / Car Loans ? They further have apprehensions that their Loan Applications were turned down despite having good Credit Report and CIBIL Score greater than 800. How do we account for such a case ?

When you apply for a Housing Loan, the following steps are performed by the Lending Bank / Financial Institution.

  1. Collect all necessary Documentation where Income Proof like Salary Slip, IT Returns are of importance to our discussion.
  2.  Collect necessary Processing Fees / Debit to your Account
  3.  Pull a Fresh CIBIL / Experian Credit Report and Read the rest of this entry »

Experian India Catching Up with CIBIL on Customers

Experian IndiaExperian is one of the four credit bureau license holders in India – CIBIL, CRIF Highmark and Equifax being others. In the global pecking order, Experian is 2X Equifax and 4X Transunion globally. In India TransUnion (CIBIL) has a larger presence.

In India, there are two entities, Experian Services India – 100% sub, decision analytics, marketing services (CheetahMail – world’s largest email marketing platform), business information (international reports).

Experian India: (1) 210 mn+ customers (2) 600 mn + address (3) 150 mn+ mn name variations; 60 mn+ identity variations. Credit accounts: (1) 380 mn+ current credit accounts; roughly 2 lines of Read the rest of this entry »

Can Secured Credit Card Help in Building your CIBIL Score?

Credit SudhaarAuthor: This article is contributed by Arun Ramamurthy, Director – CreditSudhaar

It’s funny, isn’t it, when we ask for money from established institutions and they require us to prove that we already have enough or the potential to repay them? Unfortunately for us, every lender needs a guarantee. Credit institutions exist to make our lives easier, but without the certainty that they can make business at the same time, they would cease to exist, too. We’d rather have regulated financial institutions and comply with the financial discipline that is required than fall on hard times Read the rest of this entry »

Why Credit Cards Still Offer Promise Despite Modi’s Digital Hype ?

Credit Cards vs Digital WalletsIn an era of Modi Government’s Digital India, new companies are unable to offer any new service but are looking to make it simpler and importantly, more relevant for consumers as the broad perception is that banking is a relatively complex business and the user experience/interface is far from satisfactory. Banks are defending their business as they have better data of their consumer, brand or customer trust and a large distribution network.

Digital acceptance of payment is not too high as >90% of transactions still move by cash. The extinction of the credit card business is unlikely in the medium term. The value proposition of the card would still be appealing to the consumer, especially Read the rest of this entry »

Credit Bureaus Aid Unsecured Lending to High Credit Score Consumers

Unsecured Loans Growth IndiaThe transformation of the Indian financial sector began with consumer credit profiling by credit information company such as CIBIL and later permitting Equifax and Experian to compete in the world’s largest democracy. In the last 5 years, Credit bureaus have been a game changer for the personal / business loan and credit card segments.

Unsecured products (personal /business loans, credit cards ) are seeing continued momentum in growth. However, this difference between current and previous Read the rest of this entry »

CitiCards MadOnDeals IVR Shopping Fraud – Advisory

Citi IVR Fraud IndiaAn esteemed reader of Advisory Services has written to share his plight on the on going IVR Credit Card Fraud that is so rampant in India so that users don’t fall prey to the same. he writes to us asking his right as a consumer of Citibank Credit Cards in India which are governed by quasi-judicial authority, the RBI.

On Friday, I received a call from 9210417583 mentioning that they are calling from so called Citibank customer service OF CITIBANK Credit Card division and they said that they are giving a free Package (1 Tshirt, 1 Pair of shoe, 1 Wallet, Read the rest of this entry »