Have you ever wondered what is the way out when your demands or desires outstrip your economic potential? For example, you may want to go to a European destination with your partner for a week-long trip, but do not have the adequate money in your bank, or want to add a small extension to your new … Read more
Personal loans are a convenient solution for meeting one’s immediate financial needs in today’s world. Whether it’s for a dream vacation, managing expenses, or advancing a career, personal loans have become a popular option for many. However, choosing the right lender can be challenging with so many options available. To make a smart decision, it’s … Read more
It is understandable that procuring a personal loan is the last resort for a lot of people. Every time a salaried individual encounters financial trouble, the first option that s/he thinks of is to procure a personal loan. A personal loan is an unsecured loan which can be processed seamlessly by applying with a bank or an NBFC and … Read more
The Reserve Bank of India (RBI) recently instructed banks and credit information companies (CICs) to update the credit information they collect at shorter intervals, i.e. once a fortnight rather than once a month. The instructions were issued on Thursday via a notification after the monetary policy statement by RBI Governor Shaktikanta Das. The central bank … Read more
Missing personal loan payments won’t land you in jail, but it can cause significant financial stress and damage your future credit opportunities. Here’s what can happen: Credit score damage: Late payments can significantly damage your credit score, which is a numerical representation of your creditworthiness. Negative marks from late payments indicate to lenders that you … Read more
When you are given a loan’s pre-approval, it usually has a minimal impact on your CIBIL score. This happens because it leads to a soft inquiry rather than a hard inquiry. In other words, loan pre-approval does not influence your CIBIL score in any significant way. Let us understand what is a soft inquiry. Pre-approval … Read more
CIBIL scores reflect your creditworthiness based on your credit history. Banks use this score as one of the key factors in their decision-making process at the time of assessing your loan application. While a high CIBIL score shows that you have a good credit history and are likely to repay your loans on time, banks … Read more
While CIBIL primarily deals with credit information of account holders, it does not directly handle disputes related to fraudulent charges. However, if anything of this sort comes to the fore, it is recommended to place a fraud alert or credit freeze on your credit report with CIBIL. This makes it quite cumbersome for fraudsters to … Read more
Failing to repay a personal loan can lead to significant financial repercussions and negatively impact your credit score. Furthermore, the failure to repay your loan can lead to unnecessary stress. Waiting to communicate with your lender after missing a payment only compounds the anxiety over time. Here are some of the key consequences: Impaired credit … Read more
Personal loans can be backed by collateral, allowing you to borrow money from a lender by using an asset you own as security for the loan. The collateral serves as a guarantee for the lender. If you are unable to repay the loan, the lender has the right to take possession of the collateral to … Read more