There has been a surge of messages through telephones,
ads and commercials everywhere with Banks/ Financial Companies
trying to make their business roaring by offering pre-approved
personal loans and other related services.
Even the people those who have had no earlier acquaintance or
transactions with these banks are prompted to jump up into this
lure without thinking twice, in order to avail the facility of
loan. In a novel attempt, in difference to the above facility
being offered, a firm named Credit information Bureau India Limited
(CBIL) has come into existence to offer a unique and liberalized
scheme with other related services exclusively to those customers
who already hold accounts and are subscribing the premiums uninterruptedly
without fail. The services include credit rating by which the
account holder can avail loan with subsidized rate of interest.
The prime accomplishment of CBIL is to monitor and collect all
relevant details of loan transactions of personnel particularly
those who fail to repay the installments of loan regularly through
out country irrespective of Banks/financial institutions from
which they availed the loan. Such information is being passed
on to the concerned banks/financial institutions. So that necessary
follow-up action can be initiated by the authorities concerned
for recovery of loans from the defaulters. The CBIL has been co-ventured
by HDFC and SBI. Almost all banks and financial institutions have
now been enrolled as members of CBIL.
The member companies are being supplied
with a detailed credit information report with regard
to the repayment of loans and credit cards availed by
each individuals, by CBIL from time to time. This will
facilitate the financial member firm to ascertain the
facts and thus could arrive at a decision in granting
new loan to the applicant based on the credit information
report. As such any individual who fails to repay the
installment at any earlier stage will be simultaneously
denied the request for a loan second time. The process
and the modus-operandi has since been computerized with
a network system and hence information of all individuals
are available especially those who maintain a good track
record of transactions. The name of individuals, date
of birth, PAN number, details of earlier transactions
if any and the existing one of individuals including the
details of credit card are readily available with the
CBIL. Every year, CBIL supplies exclusive details in respect
of approximately twenty lakhs customers to its member
institutions. By avoiding unauthorized sanctions of loans
and abstaining the defaulters from entering into another
deal, the above cited system is being viewed inevitable.
So that a healthy loan culture could be maintained.
Apart from the above, the credit card holders are also
being offered special incentives depending up on its proper
utilization. Every one gets a score between 100 and 1000.
The person who scores less may not be considered eligible
for loan and also will be levied a higher interest rate,
whereas the loan and credit card would be extended and
processed accordingly at a fast rate and hassle free manner
to the high scorer. They will be bestowed with less interest,
concession in the expenditure and other liberalized service
conditions, etc.
To enable high scoring, one has to
comply scrupulously with the repayment of existing loan
installments. Minimum deposit against credit card should
invariably be made within the stipulated time frame.
Be sure that balance in loan and credit card account be
managed in such a manner. So that expenditure towards
the interest in every month could be brought to the dearest
minimum. It is not advisable to invest in doubtful shares
with the money drawn on loan with high rate of interest
which will result in failure in repayment of loan premiums.
Apparently, this will contribute in slackening your scoring.
A person who holds a better credit card score will find
no difficulty in securing a loan and other services from
any financial companies with attractive bargaining conditions.
In this case, individual will have the advantage of insisting
his own conditions instead of being succumbed to the dictated
terms and conditions of the loaner..
