The Narendra Modi led government hasn’t shied away from pushing banks to lend. From the MUDRA scheme to psbloansin59minutes.com and now ‘Kashi’ — an idea which could lead to banks lending against direct benefit transfers due to crores of Indians.
With the economy under duress, bankers are scrutinising retail borrowers a lot more stringently these days. They’re even refusing loans to customers employed in Covid-hit sectors like aviation, hospitality and media. These professionals are now virtually off limits especially for private sector players.
Experts share lessons on how one must secure oneself financially during the pandemic. The pandemic has had an adverse effect on the economy, with millions coping with financial uncertainty. Months later, most people are still recovering from its impact and finding their feet.
The consumers are changing their approach and increasing their interest and awareness regarding the value of the information they provide to the businesses. 69 per cent of Indian consumers believe that the gradual change in the trajectory of customer experience is seen due to the result of their data being used, says one of the leading credit bureaus Experian in its 2020 Global Identity & Fraud Report.
In the wake of covid-19, which brought major economic activities in the country to a standstill, the Reserve Bank of India (RBI) in March 2020 allowed a moratorium of three months on repayment of term loans. The central bank in May extended this moratorium period by another three months till 31 August. Mint recently reported that RBI may extend the moratorium for some stressed sectors. Given that most industries are still reeling under stress, Disha Sanghvi asked experts whether or not the moratorium should be extended further for all categories of borrowers
Auto-debit transactions between different banks, which are used for recurring payments like loans, investments and bill payments, have seen a surge in the ‘bounce rate’, shows data from the National Payment Corporation of India.
The covid-19 pandemic is prompting consumers to keep a tab on their credit scores. There has been a 25% increase in the number of inquiries for credit reports in India in June compared with May 2020, according to the data from online marketplace for financial products BankBazaar.com and credit information company Experian.
Opting for the loan moratorium would not affect your credit score. However, it’s important you keep a track on your credit score and check for any errors, especially if you plan to apply for a fresh loan. Here is how you can get a free credit report and keep track of your scores.
Dublin headquartered consumer credit company Experian has tied up with Chennai-based technology distributor Redington India to market the former’s software solutions to the banking, financial services and Insurance (BFSI) industry.
