Earlier, credit was offered at a credit score of 500-600 points, but now most of the banks prefer 700-900 points score
During the last few years, banks have been looking for greater benchmark scores to extend loans to consumers, a Cibil official said.
"Earlier, credit was offered at a credit score of 500-600 points, but now most of the banks prefer 700-900 points score," Credit Information Bureau India managing director A Thukral said.
The credit bureau introduced the Cibil TransUnion score which is mostly used for retail loan. Through advanced analytics, this score assigns a number from 300 to 900 to a borrower based on the credit history. The higher the numerical value of the score, the lower the risk associated with the individual.
Mr Thukral believed differential interest rate might come into play in future and banks based on risk profile would fix the interest rate. Cibil was also working to introduce data depository for insurance, telecom and micro-finance sector.
NOTE: If you are facing any issue with your credit score, you may want to get help from Moneylife Foundation's free Credit Helpline http://www.freecredithelp.in/
A unique goal-based product feature from DSP BlackRock Mutual Fund
DSP BlackRock Investment Managers (AMC) has launched 'My Target Value Savings Account'.
'My Target Value Savings Account' works like a regular folio, with the additional feature being the availability of an automatic trigger facility. When an investor opens a 'My Target Value Savings Account' or converts an existing folio with DSP BlackRock Mutual Fund, s/he can specify a 'Target Value'. Upon the reaching of this target value, the Units of value equivalent to the specified target value will get switched into DSP BlackRock Money Manager Fund (Regular Plan-Growth) or any scheme specified by the investor. Investors will have the option to modify the 'Target Value', or choose from a variety of schemes from DSP BlackRock Mutual Fund at any time.
The product feature will become available starting 1st August for individuals, being resident individuals & non resident individuals, sole proprietors, minors through a guardian and HUFs.
Ajit Menon, EVP and head of sales, said "There is feedback from investors and financial advisors alike, for product providers to offer simple product features that help in planning for financial goals and also assist in monitoring them."
JM Financial Mutual Fund new issue closes on 2nd August
JM Financial Mutual Fund has launched JM Fixed Maturity Fund-Series XX-Plan A (JM FMF-XX-A), a close-ended income scheme.
The investment objective of the scheme is to generate regular returns through investments in fixed income securities maturing on or before the date of the maturity of the scheme. The tenure of the scheme is 367 days.
The new issue closes on 2nd August. The minimum investment amount is Rs5,000.
Crisil Short Term Bond Index is the benchmark index. Shalini Tibrewala is the fund manager.