Here’s how you can avail of a loan despite having a poor credit score

The following tips and suggestions will help you avail loan to deal with financial exigencies or unavoidable life-events, despite your poor credit score.

BUSINESS STANDARD – Banks and NBFCs use credit scores to evaluate the creditworthiness of loan and credit card applicant. Credit score of 750 and above are considered as good and hence, those not making the cut have very low chances of loan or credit card approval or pay higher rates for them. While there are time-tested methods of improving your credit score, those take time and patience. The following tips and suggestions will help you avail loan to deal with financial exigencies or unavoidable life-events, despite your poor credit score:

Opt for secured loan:

Secured loans are those in which the loan applicant has to pledge asset(s) as security or collateral against the loan amount. Loan against property, loans against fixed deposits, loan against securities, gold loan are some of the most popular variants of secured loans. As the lenders have the option to sell your collateral in the event of a loan default, they may ignore or relax the requirement of a good credit score while evaluating your creditworthiness.|BS

For borrowers with similar credit profiles, secured loans usually have a lower interest rate than the unsecured loans. Given that those with lower credit score might have to pay a higher interest rate on an unsecured loan, opting for a secured loan might help in reducing your interest cost.

Approach NBFCs and housing finance companies (HFCs):

NBFCs and HFCs usually have less stringent loan evaluation processes than banks. NBFCs and HFCs usually target borrowers avoided by banks. Hence, those with lower credit score may have higher chances of loan approval from NBFCs than banks…Read More

Rising food cost may push August retail inflation to 5-month high: Reuters poll

 But rising price to complicate RBI's policy path as economic growth cooled to a three-year low in Q2

 

India's retail inflation is expected to have picked up to a five-month high in August, largely driven by higher food costs, a Reuters poll showed, easing pressure on the Reserve Bank of India (RBI) to cut interest rates again after poor growth data.

Consumer prices were forecast up at 3.20 per cent in August from a year ago, jumping from July's 2.36 per cent, according to the poll taken September 5-8 of nearly 40 economists.

Forecasts for the data, scheduled to be released on September 12 at 1200 GMT, ranged from 2.50 per cent to 3.55 per cent.(economy news)

If the consensus is met, it would be the highest since April, but below the RBI's medium-term target of 4.0 per cent for the tenth consecutive month.

Tushar Arora, economist at HDFC Bank, said food prices continue to rise in August, mainly driven up by "unfavorable weather conditions and supply chain constraints."

Food and beverage inflation, which accounts for nearly 50 per cent of the consumer price index basket was expected to have rebounded in August after prices fell in the three previous months .

Monsoon rains this year have caused damages to crops of some perishable food items and hindered movement of goods.

The resulting hit from a shortage of production and supply of vegetables such as tomatoes and onions - which are basic ingredients in Indian kitchens - suggests inflation will be elevated in coming months....READ MORE