Debt counselling: Sanjay Agarwal

I earn Rs 1 lakh a month and have a CIBIL credit score of 600. Still, a public sector bank refused me a home loan. Is the credit score not enough? How can I negotiate on this?
Sanction of credit by a bank is not based on the CIBIL score alone. A bank has credit guidelines comprising multiple parameters to decide the sanction of credit. Your credit score reflects higher credit risk. If you ask the bank for reasons of the rejection, they are duty-bound to inform you. On knowing these, approach the bank manager and convince him about your repayment capability and/or provide additional risk mitigants.

I have a fair amount of investments in mutual fund SIPs and bank fixed deposits. But, since I invest aggressively, I hold very little cash in hand and depend heavily on credit cards. I ensure the entire bill is paid at the month-end. However, recently, I couldn't repay my credit card bill in time. The amount is Rs 40,000. Do you think a personal loan would help? I don't want to stop my investments.
Credit card loan is the most expensive. Personal loans are available at lower rates for longer repayment tenure and have one-time charges. Credit card issuers sometimes convert specific expenses or the entire dues into EMIs of up to one year at interest rates higher than personal loans but lower than credit card revolving credit. The best option would be to take a loan against fixed deposits that gives you flexibility on the amount of loan as well as repayment.

The writer is senior vice-president and group head, retail strategy and branding, Arcil. Views expressed are his own. Send your queries at yourmoney@bsmail.in