Debt Counselling: Sanjay Agarwal

Readers' Corner

A friend is burdened with multiple loans. Though he finds it difficult to pay his EMIs (equated monthly instalments), he hasn't defaulted. Can I take him to a debt counsellor who can advise him? What are the services debt counsellors provide and how much do they charge? Also, how long will the process take?
Debt counselling in India is not a mature industry in terms of standardisation of services or charges. They may offer only advice to you or help you in liaisoning with the banks. They may charge a nominal fee, while some debt counsellors promoted by banks may offer free advice.

I have two personal loans and two credit cards. I have always paid all the instalments on time. I want to apply for an education loan for my daughter. A colleague said I will not get another loan because I already have four credit products to my name. Is that true?
No, this is not true. A fresh loan depends on your repayments of loans and current income. As you are servicing your unsecured loans well, I see no problem in getting an education loan for your daughter. Your daughter will be the applicant, with you being the co-borrower or guarantor.

I have never taken a loan till date. However, my application for a two-wheeler loan was rejected. I wasn't given a reason. What could be the reason and how do I find out?
Approval of a loan application depends on various factors, including income and repayment trends. The criteria could vary from bank to bank. Some may consider a good repayment history to be mandatory for loan approvals. If your application was rejected by a bank, it is duty-bound to give you reasons if you ask for it, in writing. If you face any problem, you may contact the bank's nodal officer.

How can I obtain my credit score?
There are four credit bureaus in India - Cibil (Credit Information Bureau of India Limited), Experian, Equifax and High Mark. The first three have given the process to obtain one's credit history and credit scores on their websites. It is easily available and you can obtain it by following the process mentioned there.
The 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