A credit score is calculated based on the factors such as length of the credit record, payment history, credit utilisation ratio and credit exposure. Any defaults and negative issues can lower the credit score immensely.
A credit score is a three-digit numerical expression which is derived based on the information available on your credit report. It is computed using your credit and payment history, type of borrowings, credit utilisation etc.
The lenders report their customer's credit information to the credit bureaus who compute the credit scores based on the credit behaviour.
A credit report gives a snapshot of an individual's credit accounts, repayment history and various other financial dealings. The credit score is calculated based on the above factors. Creditors check the credit score before taking a decision to extend credit to their customers.
The credit score in the case of self-employed individuals also gives a picture of how well that individual manages the business. A business credit health report gives the lender an idea at glance as to how a business functions. A business credit health check is vital for managing the business efficiently and keeping track of the credit related activities.
When an individual applies for a loan or any other credits, the lenders refer to the credit score to evaluate the creditworthiness and eligibility. It becomes a decisive factor for the banks to grant credit to their consumers. A good credit score not only helps in getting a loan but also favours in terms of interest rate.
Periodically checking the credit score gives the individual an idea about their credit worthiness, in case of past defaults and if they have applied for credit improvement services, the progress of which can be tracked from time to time.
It is also wise to check your credit score before applying for any kind of credit, be it the credit cards for your shopping needs to the all-important home loan which fulfils your dream of a bigger house. Knowing your credit score before applying for credit and in the case of a good credit score puts you in an advantageous position with respect to negotiations on interest rates and loan tenure.
|BANK||INTEREST RATE||PROCESSING FEE|
|SBI||11.20% Onwards||1% of the Loan Amount|
|Axis Bank||15.75% – 24%||1.50% to 2.00 % + GST as applicable|
|ICICI Bank||10.99% – 17.99%||Up to 2.25% per annum of Loan Amount plus GST|
|TATA Capital||11.49% – 19.00%||Up to 2% on the Loan Amount|
|Punjab National Bank||One year MCLR Rate – 8.45%||1.80% of the Loan Amount|
|1. Loans up to Rs 10 Lakh for Individuals whose salary is being disbursed through PNB Branches only – MCLR + 3.55%|
|2. Loan above Rs 5 Lakh & up to Rs 10 Lakh for applicants not having a salary account with PNB – MCLR + 4.55%|
|3. Loan up to Rs 5 Lakh for applicants who are availing the Loan under check off facility (Including Defence Personnel) – MCLR + 5.55%|
|4. For others up to Rs 5 Lakh – MCLR + 6.55%|
|Bajaj Finserv||12.99% onwards||Up to 3.99% of the Loan Amount|
|Fullerton India||20% to 40% per annum||Up to 6.5% of the Loan Amount|
|IndusInd Bank||11.25% onwards||Up to 2.50% of the Loan Amount plus tax|
|Standard Chartered||Decided by the Bank on the basis of Loan Applicant’s credit history and Repayment Capability||Up to 2.25% of the Loan Amount|
|CITI Bank||10.99% onwards (T&C Apply)||Decided by the Bank on the basis of Loan Amount and Eligibility Criteria|
|HDFC Bank||15.00% to 20.99%||Up to 2.50% of the Loan Amount subject to a minimum of Rs 1,999/- and maximum of Rs 2500/- for salaried customers|
|Kotak Bank||10.99% to 24%||Up to 2.5% of the Loan Amount + GST and other applicable statutory levies|
|HSBC||10.99% p.a. to 17.5% p.a.||Up to 2.5% of the disbursed Loan Amount|
|Bank of Baroda||Having Relation with the Bank for 6 months – One year MCLR + SP + 3.00% to One year MCLR + SP + 6.00% (As per the risk rating of the Applicant)||2% of the Loan Amount, Minimum Rs. 1000, Maximum Rs. 10,000|
|Having relation with other Bank for 6 months – One year MCLR + SP + 5.00% to One year MCLR + SP + 8.00% (As per risk rating of the applicant)|
|Central Bank of India||MCLR (12M) + 3.00%||Rs 500 + S.T|
|Dena Bank||13% to 14%||1% of the Loan Amount|
|Union Bank of India||Under Tie ups||0.50% of the Loan Amount, subject to a minimum of Rs 500/- plus applicable GST|
|Tie up : 1 year MCLR + 4.00% (Floating)|
|Non tie up: 1 year MCLR+5.00% (Floating)|
|Allahabad Bank||MCLR + 4.50%||1.60% of the Loan Amount, minimum amount Rs 1068|
|Bank of Maharashtra||12.75%||1% of the Loan Amount|
|Minimum Rs 1000/-|
|Andhra Bank||For State and Govt employees: Up to 36 months – 1 Year MCLR + 3.00%||Nominal|
|More than 36 months – 1 year MCLR + 3.50%|
|For Private Employees:|
|Up to 36 months – 1 year MCLR + 3.50%|
|More than 36 months – 1 year MCLR + 4.50%|
|Syndicate Bank||Unsecured: 1 year MCLR + 4.85% P.A.||0.50% of the Loan Amount with minimum of Rs 500/-|
|Secured: 1 Year MCLR + 3.85% P.A.|
|YES Bank||13.99% to 16.99%||Up to 2.50% of the Loan Amount subject to a minimum of Rs 999/- plus taxes|
|IDFC Bank||12% to 19%||Decided by the Bank on the basis of Credit History and Repayment Capacity|
|Indian Bank||Where the Check off facility and undertaking by the Emoployer is available- 10.65%||0.51% on the Loan Amount with a maximum of Rs 510|
|Where Check off faciity and undertaking by the employer is not available but the salary is credited with the bank – 11.25%|