Debt Counselling: Sanjay Agarwal

Readers' Corner

Recently, I checked my credit score, as I wish to apply for a home loan. My score is 700 and the bank I was planning to apply to for a home loan has a cut-off of 800. Does that mean, the bank will reject my home loan application? Or, is there room for negotiation? Does every bank have different credit score requirements? Please advise.
Credit score is only one of the parameters considered by banks while giving loans. Your loan, therefore, may or may not be approved, depending on the overall criteria adopted by the bank. In case your application is rejected, you have the right to know the reasons for rejection. Subsequently you can convince or apply to other banks.

Can anyone apply for a credit report (CIR)? What is the procedure and cost?
Yes, everyone can obtain his own CIR. One can avail these reports from the three credit bureaus — Credit Information Bureau (India), Experian and Equifax. The procedure and costs to obtain these could differ from company to company. Details regarding the procedure and costs are mentioned on their websites.

What do banks mean when they say a borrower should have a good mix of secured and unsecured loans?
Any loan backed by a collateral security like mortgage, car, gold and so on is called a secured loan and a loan not backed by any collateral like a personal loan or credit card is called an unsecured loan. A good repayment history for different types of loans enhances your creditworthiness, since unsecured loans are inherently riskier for lenders as there is no fallback for them in case of default.

Views expressed are the expert’s own. Send your queries to yourmoney@bsmail.in
Today, Sanjay Agarwal, senior vice-president and group head, Retail Business Group & Technology Solutions Group, Arcil, answers your questions