FAQ's

A Credit Rating is usually a number computed by approved credit rating agencies and it provides a hint of the credit worthiness of an individual. An individual's Credit Score provides a credit institution with an indication of the "probability of default" of the individual based on their credit history. In simple terms, the score tells a credit institution how likely you are to pay back a loan (should the credit institution choose to sanction your loan) based on your past pattern of credit usage and loan repayment behavior.

The RBI has authorized companies registered under the Credit Information Companies (Regulation) Act, 2005 to provide a credit rating or a credit score based on past performances reported by various member banks and credit institutions. Credit Information Bureau India Ltd (CIBIL) is India's premier credit information bureau. Experian and Equifax are the other large players operating in India.

The credit score ranges from 300 to 900. The closer you are to 900, the more confidence the credit institution will have in your ability to repay the loan and hence, the better the chances of your application getting approved. Anything above 750 is considered a good score. All banks usually look at the credit score as one of the many checks they do before advancing a loan.

A good score alone does not guarantee loan approval. Banks also consider the status of previous loans and the payment history on those loans. A previously settled or written-off loan may impair your ability to avail more loans. Factors like credit history, outstanding loan value, loan types, and recent credit events all impact your credit score.

A Credit Information Report (CIR) provides a report of past performances as reported by various member banks and financial institutions. It includes details of both prompt payments and defaults, along with a list of inquiries made on your account by banks for credit approvals.

Yes, at times, your details might be inadvertently linked to another person with a similar profile. If that individual has any defaults, it could impact your credit score.

Vineet Nayyar & Associates (VNA) acts as a facilitator for your company by coordinating with statutory and necessary departments (like Legal, Technical, and Valuators) to help you present a healthy and viable financial proposal to the bankers in a professional manner. However, the final decision on sanctioning the proposal lies solely with the bank authorities.