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In recent years, India has noticed an increase in women consumers becoming a part of the credit landscape. There is a high rise in awareness and credit consciousness among women borrowers.

As per the recent update by CIBIL, self-monitoring women are the ones who make the real difference. The Indian credit market has seen a rapid penetration and participation of women customers. Comparing the share of women borrowers to overall borrowers is about 26% as of September 2016, which was 21% in September 2013.

See What Statistics Says…

According to TransUnion CIBIL Insights, with an increasing number of women borrowers in the Indian credit market, about 30 million women borrowers are getting access to several credit products.

Self-awareness and credit consciousness among the women borrowers have also seen a sharp increase, with self-monitoring women customers increasing by 62 percent between 2018 and 2019. It is double the 30% growth rate of self-monitoring makes customers as per the insights.

Talking about these findings, the COO of TransUnion CIBIL, Harshala Chandorkar told that

“The significant increase in the number of women who are seeking credit products is a promising indicator of the evolution of India’s credit market which has enabled increased economic opportunities for women borrowers. Financial institutions must unlock the significant potential that lies in customizing product constructs for women borrowers to further drive business growth and enable greater customer experience for women consumers.”

All financial institutions should unlock the substantial prospective that lies in personalizing all product constructs for the women borrowers to dive into business growth and allow a better consumer experience for the women customers.

TIER 1 CITIES HAVE MORE WOMEN CONSUMERS; WHY?

Most of the women consumers are from tier 1 cities. As per the recent insights of TransUnion CIBIL insights, about 56 percent of women self-monitoring their credit score are from the state of Maharashtra, Karnataka, Delhi, Tamil Nadu, and Telangana.

While Andhra Pradesh contributes only 5% to this sector, about 44 % go to avail a loan or a credit card within three months of going through their CIBIL Score and report.

It depends on several factors like an increase in women’s education, enhanced consumption of customer durables in tier-1 and tier -2 markets, and an enhancement in several working women.

As per TransUnion CIBIL, there will be further growth in demand for credit in the future among women. The research also states that an increasing number of business loans is seen from states having a maximum number of female MSME owners. This shows that they are credit conscious and are well-aware of the role of their CIBIL report for getting access to credit.

WHAT ARE THE VARIOUS ATTRIBUTES HELPING WOMEN’S POSITIVE CREDIT BEHAVIOR?

Different attributes stimulate the Indian woman’s growing use of credit, the choice of loan, and the credit-awareness. Some of them are:

• Socio-economic status and changes in it
• Attractive loans and credit card offerings by the banks and financial institutions that are specifically aimed at the woman consumer
• Various supported initiatives by the Indian government like Nidhi-Prayaas and Mudra Yojana Scheme that aim to increase women entrepreneurship

HOW ARE WOMEN LEVERAGING CREDIT?

The CIBIL score and report change every three months, and women keeping track of these apply for at least one loan account or credit card. The data suggests that more than 50% of women utilize credit in this way. Out of this 50%, more than 35% could open a loan account or credit card. Not only these, within six months of checking their credit report, women have demonstrated credit consciousness, and more than 40% of them have also improved their credit score.

The average Score of a good CIBIL is 734, and the data suggests that women self-monitoring their credit score have a High Score than the average CIBIL that is 726. Fascinatingly self-monitoring, millennial women customers have a high average score of 735, specifying that 64 percent of self-monitoring women customers are millennials.

The Indian Credit and loan sector lenders prefer to take an onboard credit-conscious customer who can obey the loan agreement and can repay the whole amount entirely on time. The CIBIL Score and report of any customer reflect their credit consciousness. It has been said by Sujatha Ahlawat, who is the VP and Head of Direct to consumer interactive, TransUnion CiBIL.

HOW CAN WOMEN HAVE ACCESS TO MORE CREDIT?

Women can boost their eligibility to meet their financial goals by following these key steps:

• Ensure to create and maintain a positive credit profile
• Access credit cards cautiously and apply for loans or credit cards that are designed just for women
• Take a durable consumer loan to build a credit footprint and a favorable credit profile
• Pay your credit bills and EMI on time, every time
• Check and monitor your CIBIL Score regularly
• Be aware of your credit utilization ratio
• Maintain a balance of the secured and unsecured loan

Conclusion

Women are revolutionizing the credit landscape, and maintaining a healthy credit score can go a long way and may turn your dreams into reality. Also, this enhancement in credit demand and acceptance by women provides excellent opportunities to the whole credit industry to personalize products and services that can better meet the financial needs of women borrowers.

Having no credit history can keep you away from borrowing a loan. Whereas having a good credit score makes it easy for you to get a loan, what to do if you don’t have a credit score yet? Building a credit score from scratch can be very difficult. And if you apply for a loan with no credit score, there are high chances that you may not get a loan or even be charged with high-interest rates.

However, here are a few ways to help you build your credit score from scratch, especially when you don’t have a Credit History, a Credit Card, or Loan Account, to back your application.

HOW CAN YOU BUILD YOUR CREDIT SCORE FROM THE BEGINNING:

1. A new pre-paid card

Credit cards are an essential financial tool that helps its holders make additional purchases without fearing insufficient money as it gives you the luxury of paying back the amount later.

Credit cards come with an approved credit limit that can be utilized by the holder every month and can pay back the amount on the due date. The bank and the holder mutually decide the due date and is usually 40-45 days.

You can use these cards to make balance transfers and cash advances in various purchases. Remember that using a credit card requires maintaining a minimum payment to be made every month by the due date.

Besides this, it also helps you build a good credit score, but you can apply for one only if you have a credit history. Try using a credit card against a bank FD to begin your financial journey.

HOW DOES CREDIT CARD HELP BUILD A GOOD SCORE?

Make regular use of your Credit Card for transactions and pay your bills on time before each credit statement cycle. This will create a clean credit history of repayment.

The transaction report maintained by your bank will report this to the bureau, from where your credit score will be calculated based on this record.

Please make sure that you choose your first card with a low annual fee and payout your bills in time.

2. SECURED PERSONAL LOAN

Applying for a secured loan makes sense when you require cash urgently or are not eligible for a loan and do not have a good credit history.

A Secured Loan can be applied against any of your tangible assets such as Car, Gold, Home, Investments as well as deposits with your bank.

Your loan application is swiftly approved with collateral, even without a credit history. The details required for a secured loan include your proof of identity, address, and income proof to approve your loan application.

Make sure that you apply for a small cash loan for a short duration, build a credit score, and repay the amount conveniently. Your credit score will automatically boom up when you have successfully repaid the loan. You can apply for more loans and enjoy a low-interest rate with a better credit score.

3. EMI PURCHASING

Making a purchase on EMI from your debit card can also help create a good credit score in the case where you neither need a loan nor a Credit Card. Most FMCG products like TV, Electronics, Mobile, laptops are available at discounts and EMI plans.

You can choose an EMI plan for 6-18 months. The successful repayment done through this purchase will build a clean history of refund and credit score.

4. MAINTAINING  GOOD FINANCIAL HABITS

Maintaining good financial habits by repaying your loan amount timely helps build your credit score and thus improves your likelihood for loan approval. A good credit score enables you to avoid unprecedented financial emergencies. You always have your credit limit as a backup for urgent cash needs.

Adopt some good financial habits, as below, to have a good credit history:

• Repay regularly: To keep a track of repayment dates of different loans, credit cards, and purchases made on EMI, try automating your monthly repayments. Repairing all your credits in time will boost your score and make you a creditworthy bank customer.
• Low Credit utilization: Do not utilize your credit limit entirely as it may cause a drop in your credit score. Make sure you keep your average Credit Utilisation Ratio below 30%-40%. A low credit utilization ratio is considered as a positive credit behavior. A red flag is generated on your CIBIL Report when you frequently use your credit card, preventing you from taking the loan.
• Keep debt-to-income ratio low:A 50% net take-home income ratio is considered suitable for keeping track of your credit history. It will not impact your day-to-day spending and ensure enough cash flow for your spendings. A high debt to income ratio makes you ineligible for a further loan until you repay all your loans and ease your credit limit.
• Balanced secured & unsecured loans: Having a good balance of secure & unsecured loans improves your credit history. Fast loans are offered against collaterals, have a lower interest rate, and are easier to qualify for. However, unsecured loans can create a red flag on your report and makes you ineligible for another bank product.
• Credit history period:Do not close your old credit card as it will always stand as the best proof of good credit behavior. It may also help you plan by borrowing a high amount.

Adopting a disciplined financial life is the key to building a good credit score from scratch. Credit products like personal loans, credit cards, secured loans, and EMI purchases can help create a good credit history within 6 – 12 months only if you make the repayments on time.

Applied for a loan, but your loan got rejected? Well! Many reasons can cause your application for a loan to be left despite having a good CIBIL score. Applying for a loan involves a lot of documents, decision-making research that needs pre-preparation.

Being prepared not only saves time but also effort. You may be unaware of all the formalities and paperwork required for applying for a loan. It’s important to be loan-ready and it’s also important to know what all reasons can cause your loan to be rejected. This article will explain all the possible criteria that can hinder you to acquire your loan amount.

Reasons why your loan is rejected despite having a good CIBIL score

Below are reasons that explain various other factors for your loan rejection despite an excellent CIBIL score. Make sure you go through them carefully and solve your issues proactively to avoid getting rejected.

1. RECURRENT CREDIT BORROWING

Having a habit of borrowing frequently may get a bad impression on your credit behavior. The lenders (banks, financial institutions) may be doubtful of your repayment capacity. Even if you make repayments of multiple loans EMIs timely, the lenders may doubt your credit dependence and thus consider you a risky applicant. Furthermore, they will be reluctant to offer you a loan amount as they may think you may be overburdened with a new credit amount, making you miss or slow your credit repayment.

2. REMARKS MENTIONED IN YOUR CIBIL REPORT

Another factor for a rejected loan application by the lender is the remarks mentioned in the CIBIL report. The comments in the report like

• Paying EMI after due dates
• Requesting a lower rate of interest

Any other kind of comment stated depicts the casual behavior of the applicant or poor repayment habits of the applicant. Thus, it is strictly advised not to overlook the words in a CIBIL report. Lenders will mandatorily pull out the information or the applicant’s credit report before offering a loan or credit. Make sure you dissolve these comments either by negotiating with the creditors or asking for a goodwill deletion or by paying your debt in full.

3. UNSTABLE CAREER OR SALARY

Any instability in your salary or job can give a wrong impression about you and your organization. Apart from that, if you are changing your work, address, or position frequently, this can also negatively affect your credit score and may hamper your loan approval process. Any form of instability in the flow of income due to an unstable career can make your lender and financial institution more cautious of your loan application.

4. Details Matching Defaulter’s

In case any of the information required for loan approval like name, address, PAN details, age, or even gender matches with the details of the defaulter, there are high chances that your loan may get rejected even after having a good CIBIL score.

5. TAX PAYMENT HISTORY

Not paying your taxes on time is another primary reason that may cause the rejection of your loan. Failing to pay the income tax returns timely for the last couple of years can put you at risk for loan rejection.

6. HISTORY OF LOAN REJECTION

Credit score report shows all your previous and current history of rejected/approved loan applications made in the past. Whenever you request a new loan, the lenders pull out all your credit information done in the past to evaluate your credit details. If, in case, the lenders find out that your history represents frequent loan rejections, there are chances that your loan application may get rejected. Hence, it’s necessary that you settle all your previous loan debts before applying for a new one.

7. POOR CIBIL RECORD OF CO-APPLICANT

The details of a co-applicant while borrowing a loan will also be taken into account if you are applying for a joint loan. In case the CIBIL score of the co-applicant is found to be poor or has a history of unstable income or any mistake in the address, then you must settle; the chances are high that your loan application might get rejected. Thus, it is advised that you also check your co-applicant CIBIL status before applying for a loan.

8. UNSTABLE SECURE & UNSECURED LOANS

To obtain a fair credit score, it’s essential to maintain a balance between unsecured and secured loans. Any unstable balance between these two may cause lenders to think twice about approving your loan because they may consider you an applicant with credit-based debt.

9. ENQUIRING MULTIPLE TIMES

Making soft inquiries related to your credit score do not affect your credit report. On the other hand, if the lender pulls out your credit report to check your credit history is a hard inquiry made by the lenders. If these inquiries are made multiple times, the person must have applied for a loan multiple times, which is not a good practice and may result in a rejected loan application. Thus, it is recommended for a period to avoid loan inquiries before applying for a new loan.

10. INFORMATION ON YOUR INCOME

Failing to submit complete financial information may land you into loan rejection. Lenders very keenly observe your financial summary to understand your capability of paying back your loan amount. If the lender finds a loophole in the same, the chances of your loan rejection become very high.

11. INABILITY TO VERIFY DETAILS

Banks and financial institutions maintain the details of the defaulters like name, age, address, employment, loan history, and other things. If the lender finds any discrepancies with the facts you have provided, your loan application will likely be denied after undergoing a document verification.

12. AGE OF THE APPLICANT

Another reason that your loan might get rejected is your age. Applying for a loan closer to the retirement period (more than 60 years) and less than 21 years can cause loan rejection. Lenders and financial institutions may feel reluctant to offer loans to such applicants due to zero chances of loan repayment ability. That’s why check your age criteria and loan tenure, and the amount before applying for a loan. Especially in the cases where you are closer to your retirement period.

Bottom Line

The reasons for personal loan rejection vary from bank to bank, as every bank has its eligibility criteria for loan approval. So, it is better to check the requirements with your bank before applying for a new loan.

The eligibility to get a loan is highly dependent on your CIBIL score. It is one of the most significant factors that lenders look for when sanctioning a loan. An ideal credit score value must be above 700 so that you can apply for a loan from a reputed lender. If it is lower than the required value, then there are several ways you can try to improve your credit score fast.

You may be saddened to see your credit score dip even when you are paying your EMI’S, bills, or any other payments on time. There are many reasons why your credit score may have dipped recently. Even getting approved for new credit can negatively affect your credit score.

One should keep in mind that the credit score is not just a fixed number and it keeps changing from time to time. We have curated a list of many potential explanations that may help you understand why your credit score drops and how you can address each of them.

1. RECENTLY APPLIED FOR A LOAN

When you apply for a loan, lenders pull out a hard inquiry on your credit report to evaluate how well you manage your finances. They also do this to check whether you are regular with your repayments before lending you a loan. A hard inquiry made by the lenders may temporarily lower your credit score.  However, you can lower this risk by making regular payments of your EMIs.

Applying for a loan and repaying the credit on time is one of the most successful tips to build your credit score. Hard inquiries are not so bad and are okay if done in moderation. However, to minimize the number of hard inquiries on your credit report do this:

• Try comparing between different lenders first and choose the best one for applying for a loan
• Do not apply for several loans at a time
• Research properly and choose a lender that best suits your eligibility, requirements, and budget
• If you want to apply for multiple loans, spread your applications out over time and wait as long as possible while applying for a loan
• Apply for a loan only when require especially if your score is already low

2. RECENTLY MADE AN EXPENSIVE PURCHASE ON CREDIT CARD

To avoid paying the entire cost upfront, many people use their credit cards to make large purchases. This could leave a large balance on your credit card and a high credit utilization rate, thus, reducing your credit score. You must keep your credit utilization rate to the minimum since using most of your available credit limit can pose you as a high-risk borrower. Minimum credit utilization is around 30-40%. Utilizing your credit limit above this value can make lenders reluctant to sanction a loan amount.

Ensure that you pay off your credit card bill before the end of the billing cycle, especially when a large purchase is made. Because carrying a large balance on your credit card will increase your credit utilization rate and cost you a high-interest rate.

3. MISSING YOUR LOAN EMI

Lenders check your payment history before offering you a loan. So, it is one of the most critical factors that determine your credit score. Missing a single loan EMI can immediately negatively impact your credit score. Also, lenders pay more attention to your repayment habit while lending a loan. If you miss your repayments, lenders may consider you a high-risk borrower and may hesitate to provide you with the loan.

Not paying EMI on time or missing them can cause a drop in your CIBIL score. However, you can quickly retrieve it by making the payment early along with the interest rate charges for late payment. A good history of repayment means an excellent CIBIL score.

4. PAYING OFF AN EXISTING LOAN

Paying off your credit card balance may undoubtedly increase your CIBIL score. However, if you are paying off an installment debt, you may observe a drop in your CIBIL score. This is because paying off a loan means one less loan to pay and a low credit score. On the other hand, having different types of credit under your profile, including secured, unsecured, short-term, or long-term loans, can make a large percentage of your credit score since it shows that you can manage different types of credit responsibly.

Make sure you do not avoid paying off your loans due to the fear of losing your credit limit. Being debt-free can improve your financial health and retain your loans.

5. CLOSING AN OLD CREDIT CARD

Closing an old credit card can significantly hurt your overall credit score. It not only brings down your overall available credit limit but also reduces the credit history age. Remember, the older your credit history, the larger the percentage of your CIBIL score. This is why many experts suggest starting building credit from an early age and retaining old cards and bank accounts even if you are no longer using them. The more extended your credit history you can keep, the better it is for your score.

So, now that you have learned the top 5 reasons for your CIBIL score drop. Make sure you keep all these points in mind to get a loan quickly. Remember that most CIBIL score dips are temporary and easy to recover. Keep a check on your CIBIL score from time to time and be alert whenever you suddenly notice a reduction in your score.

Debt is the total amount of money that someone owes to others. This includes a loan from a bank, borrowed money from family and friends, or any private lenders. Nobody likes to be in debt, but sometimes circumstances force you to borrow money from others and owe them.

When you opt for debt because of any medical emergency or purchasing a car or home, it is worthful in the end because you get ownership of that thing. But several other debts are not worthful and can be a trap for you. It is because of this debt trap that your finances will get worse.

The main reason why your debt becomes your debt trap is when your debt repayment is a never-ending process. It happens when loan repayment in EMI goes as interest, and there is no reduction of the principal amount.

There are several products and services available in the market that will give you temporary relief from debt.  But in reality, they are debt traps that will make your financial condition worse. Have a look at these ten common debt traps and a few tips on how to avoid them:

• Credit cards: Even though they are helpful, but they must be used with caution. One of the best ways to avoid the use of credit cards is to know the terms and conditions by going through the agreement and paying bills on time.
• Overdraft protection programs: They are helpful but sometimes it may push you into more debt. In this case, it’s also better to go through the agreement and ensure you are repaying the overdraft amount to minimize all fees.
• Mortgage refinancing: It does not make sense for all. Make use of an online calculator for determining what makes sense for you.
• High-interest loans: Stay away from high-interest loans like payday loans, renting to own, car title loans, and tax refund loans.
• Emptying a savings account to pay off debt: Using a savings account to pay off high-interest debt, is a strategy that can backfire, and lead you into a debt trap. Avoid going into debt for every unexpected expense as it can be disheartening. Always keep adequate financial reserves to pay for emergency expenses.
• Difficulty learning financial basics: most people do not understand financial basics and find themselves trapped in debt. Unawareness of interest rates that are charged on loans or the total cost of buying something through a rent-to-own agreement can lead to a debt trap for many people.

Apart from proper handling of debt trap products and services, here are a few tips you need to keep in mind for avoiding the debt trap:

• Identify the problem: If you have more numbers of credit cards and have exceeded or are about to exceed the credit limit in one or more than one credit card, you will be in debt. One of the most significant risks is when you miss EMI payments and other charges in enormous quantities.
• When you can’t pay off your debts regularly and recognize that you can’t do it soon, it becomes a debt trap for you when the total amount of debt from several sources is more than your liquid assets, investment amount, and institutes significant portion of your salary.
• Prioritize your debt: Debts can be short-term or long-term. Credit cards and personal loans are short-term debt, and home loans are long-term debts. Give priority to the loan which is with high-interest rates, overhead costs, and fees after dividing debt by tenure. Long-term loans like home loans have a low rate of interest. Credit card loans have high-interest rates, which are as high as 35-40%. When you fail to pay the credit card bills timely, it incurs interest and other fees, increasing the overuse risk.

• Fill up the gaps and prepare a payment strategy: You can initiate by keeping a soundtrack of your expenditures when you face trouble saving money. Decrease your spending on some of the expenses on items that are not important such as leisurely trips, luxury procurements, movies, etc., try to create some of the imaginative ways for decreasing your daily costs like carpooling, taking a taxi to work, or consumption of homemade foods rather than ordering from outside.
• If time permits, you should consider taking some side jobs to supplement your income. Even though it’s a challenge, always keep in mind that it’s temporary, and you will not have to limit yourself till your finances are on track.
• Have ample insurance coverage: Buy suitable insurance for protecting yourself and your family from all types of shattering incidents. The more quickly you buy insurance, the lower your premium amount will be. Insurance helps you invest all of your money in paying off all debts rather than worrying about the increasing cost of healthcare.

• Extend your loan term: You can ask your bank to increase the loan terms when taking a home loan. While this will enhance your interest rate, it will decrease your EMI payments and offer you more time to pay off your debts.
• It would help if you also tried negotiating your interest rate with your bank when you have a long-term partnership with them. You can also try moving the existing loan to any bank with a low-interest rate in alternate ways.

• Debt consolidation: Rather than examining various loans with various interest rates, you must consider debt consolidation. This helps in simplifying your life and getting you out of the debt trap. It is one of the best ways to have a healthy financial status. Here all of your outstanding amounts get consolidated into one single payment in the form of a personal loan.
• Construct an emergency fund: Saving is always a healthy habit. Besides that, you must also create a special fund for managing emergency expenses. Like for instance, you met an accident, and you are out of work for several months, then you will require money to survive yourself.
• An emergency fund helps you to manage all of your expenses comfortably. With an emergency fund, you can easily navigate difficult times without falling back on a loan.
• Increase your payments and Emi contributions: If you want to pay your loans faster, you can increase your contribution towards EMI payments in proportion to the salary hike.

Conclusion

Debts are good until the purpose behind them is good. Every loan is not bad. An individual leading a disciplined life in terms of finances never gets into the trap of debt; instead, they end up making out the maximum from the loans they have burrowed. You must consider all things to avoid the debt trap.

Are you planning to apply for a personal loan online? But confused whether you’re eligible or not.

Well! With the growing needs of people in India, getting personal loans has become very easy and witnessing colossal demand. A personal loan can meet the emergency requirement as it is one of the fastest and easiest ways to get cash.

It helps arrange funds for holidays, medical emergencies, weddings, holidays, higher education, tuition fees, project renovations, events, and much more. Three things that make personal loans more alluring are that its widely accepted, unsecured, and have quick online processing.

Banks or the lenders from whom you wish to take a personal Loan have their eligibility requirements. Lenders may only grant you a personal loan if they find you are eligible.

A personal loan is a great way to manage a range of emergency and non-emergency expenses. But there are a few factors that you should consider before taking a personal loan. Like all the other types of loans, a personal loan also requires specific documentation and eligibility criteria. Different lenders have different eligibility criteria, but they do not vary much.

Here are six personal loan factors you must look for to get the best interest rates and fastest personal Loan. These six critical individual loan factors will determine and help you repay your EMI’s.

Here are six factors affecting your Loan eligibility:

1. YOUR MONTHLY INCOME

Monthly income is an essential factor that makes up your financial profile and is crucial in all kinds of loans. It is often directly linked to your ability to repay the Loan and is supported by security or collateral, especially in the case of a Car Loan, Home loan, or gold loan.

But when it comes to personal loans, the lender would require your monthly income details to ensure that you have an adequate monthly income. It would also be advisable to show additional income sources, including spouse’s salary, business income, or others if any.

Also, your monthly income requirements may vary depending on your location. For example, if you stay in metro cities like Mumbai, Delhi, and Bengaluru, the income requirements are higher as these cities’ cost is high.

2. YOUR CREDIT SCORE

A healthy credit score is highly crucial to all types of loans. A credit score is a three-digit number based which is generated based on your credit history. In other words, it lets the lender understand your repayment track record and how diligent you have been with managing debt in the past.

A healthy or higher credit score means that your chances of getting your Loan approved are more elevated. Lenders usually prefer a Personal Loan if you have a clean repayment track record devoid of repayment default.

To know about your credit score, CRIF Highmark, and other details, lenders seek information from specialized bureaus that deal with it. Getting a personal loan also depends upon multiple aspects like how frequently you paid your EMI’S if missed any EMI’S in the past if your EMI were paid in full or not, and what has been your payment track record.

Generally, a healthy credit score means a score of 700 and above. If your CIBIL score is below 700, you should first try to improve your credit score to be eligible for the Personal Loan.

3. YOUR AGE

Another important factor for personal loan eligibility is your age. Your age helps the lender get insights into your financial stability and earning ability. For example, in your early 20’s your financial stability may not be strong as it’s the start of your earning. Similarly, your age shouldn’t exceed 65 years of age by the time of loan maturity.

Lenders usually prefer salaried applicants between the age group of 23 and 58 years with specific work experience and financial stability.

4. YOUR WORK EXPERIENCE

Work experience determines if your income is steady or not. Applicants with a stable job have regularity in the flow of their income. Lenders usually prefer applicants with more work experience as compared to those who have recently started working.

Lenders also investigate the stream you are employed with to ensure that your employer is financially sound. An economically secure profile means you can probably get the lowest interest rate on a personal loan, and a long work experience can help reduce the speed. Also, the minimum work experience, type of occupation may differ for different lenders.

5. YOUR CURRENT LIABILITIES

Another crucial factor necessary for a Personal Loan is your current liabilities. The lender would like to seek all the details on your existing Loan, if any, like a home loan, education loan or car loan, etc. It is to ensure that you have adequate funds to repay all your existing liabilities and the new Personal Loan you are thinking of buying.

6. REPAYMENT

A shorter repayment method means you can get the personal loan approved at a low-interest rate. However, it’s important to note that your repayment tenure should not be overly ambitious, and your EMI amount is easily adjustable within your monthly budget. 

It’s essential to understand all these factors before applying for the Loan, as it may increase your chances of availing of a loan at a low-interest rate. With these factors in mind, you can also negotiate your loan terms with the bank.

There has been a considerable increase in the number of women entrepreneurs across the country in recent years. The Indian government has developed numerous initiatives to support women entrepreneurs financially, including the Annapurna scheme, Udyogini scheme, Mudra yojana scheme, and others. Aside from that, women entrepreneurs might think about getting a small business loan for their start-up.

When it comes to acquiring loans from financial institutions like banks and NBFCs, Indian women have surpassed their male partners. According to a survey by credit agency TransUnion CIBIL, between 2015 and 2018, India has seen a 48 percent increase in successful loan applications among women borrowers. Male borrowers, on the other hand, are growing at a slower rate of 35%. According to the data, 8.6 million new-to-credit women borrowers open new loan accounts each year, with 66 percent of these women hailing from Tamil Nadu, Kerala, Andhra Pradesh, Maharashtra, and Karnataka.

“The rise in female credit demand and uptake provides an opportunity for the credit industry to tailor products and services to better meet the financial needs of female borrowers,” said Harshala Chandorkar, COO of TransUnion CIBIL. ” The government’s financial inclusion measures geared towards women have also aided in this development. Transunion Cibil anticipates increased loan demand from women borrowers in the future, owing to a number of variables including increased female education, increased consumer durables spending in tier I and tier II markets, and a spike in the proportion of women in the workforce.

According to the survey, a large percentage of business loans come from states with the highest number of female MSME owners. With an average CIBIL Score of 781 among women, Tamil Nadu and Kerala have the lowest borrowing risk profiles among the top borrowing states in the country. Surprisingly, the data collected reveals that financial prudence and the average CIBIL Score among all women rises with age. Women under the age of 35 had an average credit score of 773, while those between the ages of 35 and 45 had a score of 776, and those over 45 had an average credit score of 785. All Indian women consumers have a CIBIL Score of 770 or above.

Nowadays, with the help of leading financial institutions, availing a small business loan has become a quick and hassle-free process. However, before applying for a small business loan, women entrepreneurs should make sure that they have a high credit score.  A good CIBIL Score can help consumers gain access to better credit offers faster. Also, most of the lenders typically consider a credit score above 750 as an ideal score.

LET’S SEE WHY IT IS ESSENTIAL FOR WOMEN TO BUILD THEIR CIBIL SCORE!

• Before granting a loan application, financial organizations analyze the applicant’s credit score. As a result, women who have a strong credit score will be eligible for a larger loan. Furthermore, if they have a good credit score, they will be able to negotiate the interest rate offered by the lender. A bad credit history, on the other hand, can hurt your possibilities of getting a loan. This is because a borrower with a low credit score is regarded as a high-risk borrower.
• As credit score determines loan eligibility, it is essential for women entrepreneurs to maintain a strong credit score by making on-time payments and paying off outstanding debts. By optimizing their spending habits and managing their funds intelligently, women entrepreneurs can considerably improve their credit score.

IMPROVE YOUR CIBIL SCORE WITH THE FOLLOWING TIPS

• If you want to keep your credit score in good shape, you must pay on time. Defaulting on a loan will not only put you in debt, but it can also ruin your credit score. This could affect your credit eligibility in the future.
• Be careful how you use your credit cards. This is because credit cards normally come with a higher interest rate, and failing to return the balance within the specified time frame can lead to financial difficulties. Additionally, strive to maintain your credit usage ratio around 15%. This will assist you in increasing your credit score.
• Verify that your credit report is continually updated. If you find an inaccuracy on your credit report, it is crucial that you contact the credit reporting companies and request a dispute. This can help you improve your company’s credit score. Furthermore, you should try to avoid harsh inquiries and unpaid accounts, as these have a bad impact on your credit report.

Bottom Line

You can considerably improve your credit score over time by using the above-mentioned guidelines. With a good credit score, you can get a loan with a cheap interest rate and other attractive features. A good credit score will always help you get the greatest deal, whether it’s for a company loan, a personal loan, or an education loan. You can quickly apply for any type of credit product online from the comfort of your own home with renowned financial institutions. Some of the additional benefits of taking out a loan from a reputable lending firm include minimal and paperless documentation.

Women with a good CIBIL score could be able to obtain a small business loan with the most favourable terms and circumstances. A high credit score might also come in helpful for women who need a personal loan for travel, medical problems, or managing wedding expenses, among other things.

In the financing business, credit scores are a critical tool. A person’s credit score informs a lender about their creditworthiness and influences their decision to accept or reject them as borrowers. Similarly, everyone needs to check your credit score, whether as an individual or a corporation. Reviewing your credit report regularly and taking necessary steps to enhance your CRIF credit score can help secure funding quickly and at reasonable interest rates.

WHAT IS CRIF HIGH MARK CREDIT?

CRIF Highmark is one of India’s six credit bureaus, offering reliable credit insights through its CRIF Highmark credit reports and scores for individuals, businesses, and other entities. By collecting and analyzing diverse credit-related data, CRIF Highmark assesses creditworthiness and assigns a CRIF credit score. This score is featured in the High mark Credit Information Report (CIR), which serves as a vital document for lenders. Members of CRIF, including banks and financial institutions, update the data required to calculate a credit score every month.

Regularly reviewing your CRIF Highmark credit report ensures you are aware of your credit health, helping you make informed financial decisions.

WHAT IS CRIF HIGHMARK CREDIT SCORE?

The CRIF credit score is a three-digit value ranging from 300 to 900. With a score of 300 being the lowest or worst and 900 being the greatest or best. A high CIRF credit score indicates a low-risk individual with strong financial credibility. In other words, someone with this score should be deemed a low-risk borrower. A poor credit score, on the other hand, suggests a person who lacks financial trustworthiness and is a risky loan application. Lenders use the CIRF credit score in this way to assess a person’s creditworthiness.

HOW DO I CHECK MY CRIF HIGHMARK CREDIT SCORE?

Other credit bureaus in India, such as Equifax, CIBIL, and others, exist in addition to CRIF High Mark. According to RBI requirements, these credit bureaus must provide free credit reports to individuals at least once a year. If you want to discover your credit score or see your credit report, go to CRIF Highmark’s official website and fill out an application for a credit report.

You will receive your credit score as well as a comprehensive credit report in your email after providing the essential information. The procedure for obtaining a credit report is simple and quick. You can request a printed version of the report in addition to receiving it in the mail, and the report will be mailed to you to the address mentioned in your document.

HERE’S HOW CRIF HIGHMARK CREDIT SCORE IS DIVIDED:

300–500 (very low): This score shows that the consumer is at a significant risk of defaulting on their credit and has a poor repayment history and credit history. There is a high likelihood that lenders will refuse to lend to such customers.

500–650 (low): This range of scores implies that the consumer has a low credit score and has missed or defaulted on payments. Customers who have not made timely payments are still considered a risk by lenders, and some of them may refuse to lend to them.

650–750 (great): A credit score of 750 is considered optimal by most lenders, including banks and non-banking finance organizations. Customers with a credit score in this category have a history of timely repayment. They’re also more likely to keep a decent balance of secured and unsecured credit scores. Customers who fall into this category are beneficial for lenders because they have a minimal risk of defaulting.

750-900 (excellent): Customers with a credit score in this category are thought to be exceptionally credit-worthy since they have shown great repayment behavior and have never missed a payment. They have a perfect track record of paying all of their bills on time and intelligently using credit. Lenders are eager to provide loans to such clients. CRIF Highmark Credit Score and Report

CRIF Highmark is one of India’s leading RBI-licensed credit bureaus, alongside others such as Equifax, Experian, and CIBIL. These bureaus provide personal and business credit reports that evaluate your creditworthiness. According to RBI regulations, individuals are entitled to one free credit report from these bureaus every year.

How to Get Your CRIF Highmark Credit Report

To check your CRIF score or obtain your report, visit CRIF Highmark’s official website. You’ll need to provide essential details like your name, mobile number, and identification information to complete the application. Once submitted, your credit score and a detailed credit report will be sent to your registered email. You can also request a physical copy, which will be mailed to the address provided in your documentation.

CRIF Highmark Credit Score Ranges

• 300–500 (Very Low): This range indicates a high likelihood of default due to poor repayment behavior and an unsatisfactory credit history. Securing loans or credit cards is difficult for individuals in this category.
• 500–650 (Low): A score in this range suggests missed or defaulted payments. While lenders might still consider applications, the risk is high, and approvals may be limited.
• 650–750 (Good): This range reflects responsible repayment behavior. A score of 750 is a good indicator for most lenders, demonstrating a balance of secured and unsecured credit usage. Borrowers in this category are seen as low-risk.
• 750–900 (Excellent): This is the ideal range, showing exceptional creditworthiness and a history of timely payments. Lenders are highly willing to extend loans or issue credit cards to individuals in this category.

Importance of Monitoring Your Credit

Regularly monitoring your credit report and score ensures you stay informed about your financial health. A CRIF score that ranges between 300–900 allows you to gauge your position and take steps to improve if necessary. This is especially crucial when planning to get a new credit line or loan.

Let me know if you need further enhancements or additional sections!

KEY POINTS TO BE NOTED ABOUT THE CREDIT SCORE GIVEN BY CRIF HIGHMARK:

• The CRIF Highmark credit score is divided into two categories: Business Credit Score (for businesses) and Personal Credit Score (for individuals)
• The length of your credit history, credit mix, credit card applications, credit payment history, and credit utilization ratio are all factors considered when determining your CRIF Highmark credit score.
• CRIF Highmark’s credit score demonstrates your creditworthiness.
• A consumer is entitled to one free CRIF credit report per year; beyond that, it costs Rs. 399 per year.
• A CRIF Highmark is a three-digit credit score ranging from 300 to 900 points.

DIFFERENT CRITERIA USED BY CRIF HIGHMARK TO GENERATE A CREDIT REPORT:

• Current outstanding debts
• Repayment history
• Credit utilization ratio
• New loan applications
• Debt to income ratio
• Credit mix
• Length of credit history and more

Frequently asked Questions

1. What is a credit score?

A credit score is a three-digit number that represents the creditworthiness of an individual or entity. It is calculated based on credit history, repayment behavior, and other financial factors. Lenders use the credit score to evaluate the risk of lending.

2. What is a good credit score?

A score above 700 is generally considered good. It indicates a strong credit history and responsible repayment behavior, making it easier to secure loans or credit cards at favorable terms.

3. How is a credit score calculated?

A credit score is calculated by analyzing factors such as payment history, amounts owed, length of credit history, types of credit used, and recent credit inquiries. Paying your credit card dues on time and maintaining a healthy credit utilization ratio positively impact your score.

4. What is CRIF Highmark?

The CRIF Highmark is an RBI-licensed credit bureau in India that generates credit scores and credit reports for individuals and businesses. It collects data from financial institutions to create a detailed record of your credit history and provide a personal credit score.

5. Why is a credit report important?

A credit report provides detailed information about your credit accounts, repayment history, and outstanding debts. Reviewing the report helps you understand the factors impacting your credit score and identify any inaccuracies that need correction.

6. How can I improve my credit score?

To improve your credit score:

• Pay all dues, including credit card dues on time.
• Maintain a low credit utilization ratio.
• Avoid applying for multiple loans or credit cards in a short period.
• Regularly monitor the credit report for errors and rectify them promptly.

7. Can I check my credit score through CRIF Highmark?

Yes, you can check your personal credit score and report through CRIF Highmark. It provides insights into the credit score and history to help you maintain good credit health

If you’re planning to apply for credit in the near future, you’ve probably heard of the term CIBIL score. Have you heard of this term but are unsure what it means? TransUnion or CIBIL is one of the most well-known credit information bureaus in India. It keeps credit records of a large number of people and businesses all over India. CIBIL creates a credit report for an individual or a business based on a number of factors. Every credit report from CIBIL is charged a cost (with the exception of one free report per year for individuals).

WHY SHOULD YOU CHECK YOUR CIBIL SCORE?

CIBIL score is a three-digit number which determines about your loan approval or rejection. The higher your credit score, the more likely you are going to get approved for a loan with favorable interest rates. While your credit score can range from 300 to 900, a score of 750 or more is regarded as good because it suggests that you have been diligent in repaying your loans and responsible with your money while having a decreased risk of defaulting on your payments in the future.

Knowing your CIBIL score ahead of time gives you the benefit of time to concentrate on improving your score even before you start applying for credit. As a result, one should verify one’s credit score before asking for a fast personal loan online. However, you should be aware that you may be charged for checking your CIBIL score.

WHAT IS THE COST OF CHECKING YOUR CIBIL SCORE?

To check your credit score, simply log into your CIBIL account and follow the simple instructions to download a copy of your credit report. For their services, CIBIL charges a minimal fee. The following are the CIBIL score fees for various plans:

ONE-TIME REPORT:

The cost of a CIBIL score report is Rs. 550 for a one-time report.

STANDARD:

A standard subscription with CIBIL costs Rs. 800. This subscription allows you to receive two reports over the course of six months.

PREMIUM:

The cost of a premium subscription from CIBIL, which entitles you to get four thorough reports over the course of a year, is Rs 1200.

SIGNIFICANCE OF CIBIL SCORE

Your credit score indicates your ability to repay debts and your spending habits. As a result, when you request for a loan, financial organizations will examine your credit score. A good credit score can help you get a bigger loan with a lower interest rate. A bad credit history, on the other hand, can hurt your possibilities of getting a loan. This is because a borrower with a low credit score is regarded as a high-risk customer.

The CIBIL credit score is independent of all savings, including fixed deposits, savings accounts, and so on. You can get your credit report from CIBIL at any time, but you must pay the above-mentioned fees according to your membership. This gives you the ability to monitor your creditworthiness.

If you have an excellent credit score, you can acquire a loan with better terms of service. It’s important to remember that improving one’s credit score takes time. It is suggested that you provide the lender with your entire credit history. This will increase your chances of getting your loan authorized significantly.

Bottom Line

Since your credit score is such an important aspect in determining your loan eligibility, it is critical that you maintain a high credit score by making on-time payments and paying off any outstanding debts. You can significantly improve your credit score over time by modifying your spending habits and managing your finances sensibly.

From simple and speedy loan application processes to seamless and hassle-free debt settlements, Kenstone Capital strives to meet all of your personal and financial needs.

Your CIBIL score is the most important element that lenders consider before approving your loan application. A credit score of 700 or above is considered to be good. So, make sure to get your CIBIL credit report from your bank or you can apply to the official website of CIBIL.

A CIBIL report is detailed information of your credit history maintained by Credit Information Bureau Limited. CIBIL is responsible for maintaining all financial activities of every individual and company.

A CIBIL report plays a very important role when it comes to borrowing loans or credits. It depicts all of your credit history including old credit card payments, loan EMIs, credit limit, and payment history.

Also read: How to improve a good CIBIL credit score

A credit report contains all the information about borrowed loans, credit cards, repayment, and EMI payment history. Based on this information, CIBIL determines how capable you’re of taking loans. Once you have your CIBIL report, you must know how to read and interpret your credit report.

Inside View of CIBIL Report

A CIBIL report contains six main sections: Credit score, personal information, contact information, employment information, account information, and inquiry information. Let’s take a detailed view of knowing each section in the CIBIL report:

CIBIL Score: The very first thing is mentioned is your CIBIL score. As you already know that CIBIL score is a three-digit numerical that is calculated based on your credit behavior. It ranges between 300 to 900. It depicts how credit-worthy you’re as a borrower. A credit score of 700 and above is considered as good. If your score is above 700 then there are higher chances that the bank will consider you to borrow a loan or credit card.

Personal information: This section contains all of your personal information including name, date of birth, gender, mobile number, PAN card details, voter ID, and other details. This information is collected by CIBIL to prove how accurate and genuine you’re.

Contact information: In the third column, you’ll see another section mentioning the contact information of an individual. It consists of your addresses, telephone number, permanent address, or current address. This information is collected by lenders which are again captured to check the accurate identity of the person.

Employment information: This section contains contains the information on jobs and past companies, annual and monthly income details. It also checks the frequency of job change from one place to another. If the frequency is high, there are fewer chances that the lender would approve your loan.

Account information: This section plays a very important aspect in the CIBIL report is it is all about the records of your credit card statements, outstanding dues details, past or current loans history. It also consists of information related to the repayment history, or how frequent you’re paying EMIs, bank account details. This information is very important as it helps them to understand your credit health and worthiness.

Inquiry information: This is the last section of the CIBIL report. It consists of all information on inquiries made by lenders or banks. When you borrow a loan or credit card, the lender would send an inquiry to CIBIL about your credit behavior. So, these inquiries are entered in the CIBIL report. Each inquiry includes the lender’s name, date of application, type of loan you applied for, and the amount of loan.

So, to maintain a healthy and good credit score, make you keep an eye on your CIBIL report regularly. Having a good score would be easier for you to apply for loans or credit cards. It’s important to check your CIBIL report, identify unsolved errors, and rectify them. Moreover, keep track of repayment and credit behavior.