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Will Credit Score Matter For All Loans?
June 1 2018

Will Credit Score Matter For All Loans?

A good credit score or CIBIL score is often the single most important factor that banks and non-banking financial companies (NBFC) take into consideration before sanctioning a loan. The credit score is essentially an aggregated numerical figure that predicts your ability to pay off a loan, calculated on the basis of your spending and repayment trends in the past.

Your credit score can fall anywhere in the range of 300 and 850. The higher your credit score, the greater the likelihood of the loan being sanctioned.

Recently, a few banks in India have started giving preferential pricing on loans to customers who have a good credit score. The question is whether or not this will become the norm for all kinds of retail loans across all banks.

This is why your credit score matters:

  • Risk-based lending is a global reality, and more and more banks are likely to adopt preferential pricing as the way to reinforce the importance of a good credit score.
  • Banks will enforce credit discipline among borrowers, and pursue customers that exhibit a good credit track record.
  • Customers with a good credit score are likely to get an instant discount on the loan, which will serve as instant gratification for the customer.
  • Credit discipline is likely to become the underlying basis for the sanctioning of all retail loans. This will reduce the delinquency rate and streamline the financial industry.
  • The emphasis on a good credit score can be seen in the case of both secured and unsecured loans.

The catch in the situation is that first-time loan applicants or those who do not hold a credit card yet may not have a high credit score. If you have never made a big purchase like a home or a car before, then also it is likely that your credit score is on the lower side. The upside is that it is easy to boost one’s credit score in a short span of time. The first and most important thing to do to improve a poor credit score is to pay your bills on time. Setting up reminders for credit card bill payments is a useful thing to do. If you have any debts to pay, make sure to pay them off as early as you can. Needless to say, your monthly installments should always be paid well in time.

If you are looking to apply for a home loan, you can consider the types of mortgage loans designed to cater to first-time homebuyers with low credit scores. Such home loans do not demand a high down payment and have flexible plans that can work for those who are just starting out.

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I cannot thank you enough for making our journey with Gera so so interesting and mind-blowing. I had never ever imagined my life taking a beautiful turn with me beginning to start my career as a music teacher that too with SMA (Shankar Mahadevan Academy) and all this has been possible only because of GERA and YOU my dear.
It is only because of your efforts and kind gesture that I could meet the man himself (Shankar Ji) and have a small recording session with him. That was like a dream come true.
I am super excited to start my journey with SMA and Gera as a teacher now.

Apart from that, Me and Prateek have always been grateful to you for making Shiamak happen for us and I ..

It was indeed a pleasure being a part of the Christmas celebrations at Astoria. Kudos to the Gera team for bringing in such a wonderful event with great carol singing participation from our own kids. It brought in the spirit of Christmas and the games, Santa, the gifts only added to it. Thanks for organising such a wonderful event which helped in community building...looking forward to many more such celebrations!

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The Christmas event organised at Astoria was a big success and a big step in bridging the gap between us and Gera. It was a memorable event as we are still in the beginning of our journey of life in our little home at Astoria. The kids have been the happiest of all and what more can we ask for when we see smiles on the faces of our little ones. Kudos to you and your team for making this event a huge success! Looking forward to many more in the years to come.

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The Christmas party organised by Gera at Astoria this year was a great success with good participation from kids and parents. Our children Sia and Saish enjoyed the party to the fullest. Sia, in particular, had a gala time and reiterated her stand that Anita aunty's parties are THE BEST.... We as your customers take much pride in informing our friends that such goodwill gestures are one of the many differentiators Gera brings to us, which no other builder in Goa can boast of. Many thanks to you and your team for doing an excellent job in putting up this event. We look forward to the next one! A big thanks to the Gera Management for its efforts in community building.

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