Automotive Industry in India at a glance - 2018

Sales and growth numbers for cars, commercial vehicles, two / three wheeler and farm tractors in india*. 


* Extract from M&M Annual Report 2018

7 Important Things to Avoid Regarding Personal Loan

Personal Loans are a great a way to tide over your short term financial need as it requires relatively less documentation, quickly disbursed and doesn’t require any collateral. The interest rates these days offered by banks and financial institutions are also very competitive especially for borrowers with high credit score.  But there are certain vital things that one should keep in mind regarding personal loans:
  1. Avoid Applying for loans with too many banks: This is a very important point as not many people are aware of this fact. You need money urgently and you might be tempted to apply with multiple banks in case your desired bank doesn’t approve your application. With advent of online banking, it has become very easy to apply for personal loan online with several banks. This is a bad strategy in this case. Every time you apply for a loan with a bank or any financial institution, it will check your Credit Score on CIBIL. Now with each credit score check your overall credit score comes down a little bit. Now if some four - five banks check your Credit Score at the same time it’ll hamper your score in a meaningful way, which in turn will pose a problem in getting your loan sanctioned. Also lower credit score result in higher personal loan interest rates.  
  2. Avoid taking large loan amount: Just because personal loans are structured in such a way that you don’t have to discuss the reasons for taking one, it doesn’t mean you try to get as much as you can. Take only as much as you can afford to repay. Taking a loan amount more than you can afford to repay on time will put you in a debt trap. 

How to improve your credit score through simple snowball effect?

If you are reading this you are definitely looking for improving your CIBIL score (the most widely used credit score referred by lenders to hand out the loans) and this article will certainly help you in achieving this objective specially if you haven’t taken a loan before.

Since you don’t have a credit history the lending institutions will hesitate to approve your loan application especially medium to large ticket sized loans for items like Cars, Home etc. Let’s first understand the range of scores assigned by credit rating agencies and their grades:

Credit Score Ranges
Range
Grade
0 or -1
No Credit History
550 - 300
Bad
551-649
Poor
650-699
Fair
700-749
Good
750 and above
Excellent

If you fall into the first three categories of the above table, not only there is higher chance of application rejection but also the cost of loan is going to be higher, which is the interest rate you pay on the loan amount. The only way to improve your credit score is to make timely payment on your dues and in short term that can be done either by having a credit card and paying all its dues timely every month or you can improve yourCredit Score with Personal Loans.

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