A CIBIL score -1 (NH) on a CIBIL credit report indicates that there is No History (NH) or credit track record available for the borrower. You can have CIBIL Score NH (-1), even if there is no credit activity for 2 years, that is your credit repayment history is older than 24 months. This situation might even occur if you don’t have direct credit exposure on your name (for instance you are just using add on credit cards).
While, fundamentally this is not a bad situation to be in, it deters banks and other lenders to lend to the customer for want of an adequate credit checks/track record. Some banks may reject the application, while a few banks or NBFCs might still decide to lend based on a credit appraisal on other factors including the salary/income proofs, educational background, employer etc. of the prospective borrower.
CIBIL 0, Zero CIBIL Score
A score of 0 (NA) on a CIBIL credit report means Credit History Not Available (NA). This score indicates that the borrower’s available credit track record is for a period of less than 6 months. In this case banks will evaluate Credit Transunion 2.0.
Many banks have migrated to the new credit score versions, thus improving their ability to take a decision to lend for borrowers with less than 6 months of credit history. However, those on the older credit score versions might still receive a report which gives a score of 0 or -1 for new borrowers.
CIBIL Transunion 2.0
CIBIL has launched a new version of their credit reports knows as CIBIL Transunion 2.0 which follows a different approach for evaluating the past history of the borrower with less than 6 months of credit history. CIBIL 2.0 provides a score or risk index for new borrowers within a range of 1-5, where 1-2 represents the highest risk of default, 3 represents medium risk and 4-5 represents the least risk of default
The score is dependent on various parameters such as loan type (secured or unsecured), past credit seeking activities (like number of loan enquiries), 3 months overdue in any month for the past loan period, demographics (like age and location) etc.
Other two leading credit score agencies of India, Experian and Equifax have also followed suit by offering credit scores for new borrowers. Experian measures the scores of such customers on a grading scale of one to six, where one means highest risk of default, and six means lowest risk of default. Equifax gives a score in the range of 300-900, which is similar to the scores which a potential borrower with adequate credit history would get.
17th Feb 17 Affordable housing segment to get better returns in FY18
Government has recently introduced a series of reform to encourage affordable housing segment in India. Several measures such as granting infrastructure status to real estate and launch of new regulatory act for realty sector are likely to benefit the real estate developers and investors operating in the affordable housing segment.
17th Feb 17 Citibank India launches instant chat service for its users
Citibank India has launched an instant chat service for its customers using net banking. The chat platform will enable its users to connect with bank executives through internet to resolve their queries related to cards, domestic and non domestic accounts, loans etc.
17th Feb 17 Scheme with interest subsidy on housing loan to be applicable from 1st January, 2017
Prime Minister of India had announced a special home loan interest subsidy of up to 4 percent for buyers or owners of affordable and middle income houses on 31st January, 2016. The scheme is expected to be operational from 1st January, 2017. Home loan borrowers with loans of less than Rs 18 lakh sanctioned after 1st January, 2017 can avail the benefit of interest subsidy under the scheme. Unmarried and earning young adults intending to acquire a new house including repurchase are also eligible for the benefit. Under the scheme, flats measuring up to 960 sqft and 1,184 sqft will attract interest subsidy of 3 and 4 percent respectively.
17th Feb 17 PNB Housing Finance launches EMI step up plan for self employed loan borrowers
PNB Housing Finance has launched a new EMI scheme called EMI Step up Plan for self employed loan borrowers across home loan and loan against property segment. Under the scheme, borrowers who have taken loan of Rs. 50 lakh and above can opt to pay a lower EMI initially and can gradually increase the EMI to match an increase in their income. This is expected to ease the loan burden on borrowers in the initial years of their career.
17th Feb 17 Regional Rural Bank gold loan limit doubled
Reserve Bank of India has raised the ceiling of gold loan provided by regional rural banks to Rs. 2 lakhs from Rs. 1 lakh earlier. The relaxation in ceiling is expected to ease out access to credit for farmers and artisans. Borrowers can repay the loan at the end of the tenure, but the interest will be chargeable on a monthly basis. However, the benefit of high loan amount will be applicable on loans with a tenure upto one year.
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