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A few years ago, Aryan, a young professional from Mumbai, missed a few credit card payments. At that time, he thought it was not a big deal. He had just started his career, his expenses were high, and he told himself that once he cleared the dues, everything would be fine. A year later, when he applied for a home loan, the bank politely rejected his application. Confused, he checked his credit report and was shocked to see those missed…

Credit Bureau assigns a 3 digit number called as credit score which ranges from 300 to 900. It serves as a numerical representation of a borrower's creditworthiness, reflecting their financial behaviour. Lenders utilize this score to assess the risk associated with granting loans. A high credit score can lead to better loan terms, including lower interest rates and higher credit limits, while a low score might result in loan rejections or unfavourable terms. Credit Bureaus are vital in the financial…

The dramatic transformation of the housing finance landscape, from traditional to digital and customer-centric approaches, underscores the increasing importance of analytical skills. As lending methods evolve, professionals must evaluate complex financial data and credit reports to make informed loan decisions.  This analytical capability is crucial for assessing creditworthiness, managing risks, and optimizing loan performance in the modern market. This shift has been influenced by technological innovation, updated norms and regulations, and a move towards greater market orientation. Additionally, Fintech lenders are leveraging…

The Most Important Terms and Conditions (MITC) and the Key Facts Statement (KFS) are crucial documents within the lending framework, provided to borrowers prior to availing finance. These documents are mandated by the Reserve Bank of India (RBI), both documents outline the borrower's obligations and ensure they have a clear understanding of the terms and conditions along with the key facts of the loan. Currently, MITC and KFS comprise a total of 42 points, with 25 of those points overlapping…

Survey. lendersDownload As mentioned in our previous blogs on moratorium - We designed and constructed a survey, to interview industry leaders, with an aim to learn from their experiences of offering moratorium to their customers. Interviewing several business leaders at mid- size to large-scale, non-banking finance companies, housing finance companies, lenders with financial inclusion focus, and newer Fintech companies, our study scope encompassed all retail lending products. The objective is to learn from these approaches, experiences, outcomes, and bring…

Laziness is a universal syndrome – even the most active person, at some time succumbs to it! Strangely, it hits us in the most unlikely manner and in the most unlikely aspect of our life. The other unique aspect of this syndrome is we often allow it to creep up on us and then justify its impact.    Technology is meant to make life easier for us, protect us and our data and ensure privacy of personal information. From our simple…