| What is Credit Score or Credit Rating? |
| 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. What this means in simple English is that 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. |
| Who issues a credit score or credit rating? |
| RBI has authorised companies which have registered under the 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 (credit) is India's premier credit information bureau. Experian and Equifax are the other large players operating in India. |
| What is a good score? |
| 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. |
| If I have a good score, will I surely get a loan or credit card? |
| A good score alone does not mean a person can get the loan he wants. Bankers additionally look at the status of previous loans and the payment history on such loans. A previously settled or a written off loan is likely to impair the ability to avail more loans. Credit history, outstanding loan value, loan types, recent credit events, etc. affect ones credit score. |
| What is a Credit Information Report or CIR? |
| A Credit Information Report (CIR) is a report on past performances reported by various member banks and financial institutions about an individual. It provides information on prompt payment as well as defaulted payments. It additionally has a list of enquires made on your account by various member banks for the purpose approving a credit facility |
| Can errors in reporting cause a bad score? |
| At times, by error, your details may be inadvertently linked to another person with a similar profile. If there are any defaults by that person, then that persons credit facilities could have an adverse impact on your credit score. |
| How does my project get financed? |
| VNA plays the role of facilitators for your company and coordinates with all the statutory & necessary departments (like Legal, Technical, and Valuators) to enable you to present a healthy and viable financial proposal to the bankers in a professional manner. The final decesion on the sanction of the proposal however remains only with the bank authorities. |
