Financial start-up 'Credit Sudhaar' to expand base in UP

Credit Sudhaar, a start-up company offering 'credit health improvement' services, is keen to expand customers' base in Uttar Pradesh, where it claimed loan default rate is higher.

The company has launched a drive to increase awareness amongst people about the importance of good credit health for seeking loans.

"India has entered a territory where the past credit history of a person would define whether he/she would get loans from banks and financial institutions and at what rate," Credit Sudhaar co-founder Gaurav Wadhawani said here.

He asserted since the default rate in UP was high, the lenders were either hesitant to offer loans or charge a higher interest rate.

"The problem is accentuated by the fact that most people are unaware about credit bureau and the importance of maintaining a good credit score," he noted.

He said credit health had several components including financial track record, credit score, income-expense ratio, delinquency status, debt burden, ability to access credit on favourable terms. It is based on a person's past and current borrowings and repayments.

"Our aim is to promote the importance of good credit health. In our surveys, we have found 97 percent of people unaware about the importance of good credit health whereas 86 percent have not even heard of credit bureau," he informed.

Wadhawani claimed the company served 60,000 active members availing of its paid services spread across 270 Indian cities. Headquartered at Mumbai, it also has offices in Hyderabad, Chennai, Bangalore, Pune and Kolkata.