Mohan Jayaraman underlines the need to maintain a good credit history record by settling repayment matters with banks and lenders on time
"One must regularly check one's credit report, especially before taking a fresh loan. Actively manage your finances, because a bad credit history may later create problems for getting a fresh loan," said Mohan Jayaraman, COO, Experian Credit Information Co of India. He was speaking at a seminar organised by Moneylife Foundation, on Understanding the Importance of Your Credit History & Credit Score.
Even today, many people are unaware about credit bureaus and the way they function. These organisations collate information on an individual's finances and assign a credit score to each person, and this consumer information is provided to banks and other financial agencies. The credit information report is an individual's loan repayment track record.
"A series of such instances have shown that customers themselves are unaware of their loan repayments and defaults, which later leads to rejections of loan applications. It is necessary for people to be more vigilant about their credit history," Mr Jayaraman said.
He stressed the importance of having a healthy credit score and how this is assigned. The Experian COO explained what constitutes a credit history and how someone can improve upon the score. Drawing from his 17 years of experience in consumer banking, half of this with ICICI, Mr Jayaraman also gave other tips to borrowers.
"If you regularly check your credit history, you could spot mistakes in case there are any, and you can contact your bank, or lender, to correct them," he said. He also busted some credit myths and clarified what is not included in a credit report.
Mr Jayaraman pointed out that different credit bureaus had different ways of evaluating credit history and assigning scores, but it depended on the banks how they used the information to grade the viability and reliability of the credit seeker.
Replying to a question, he said that the customer had no say with regard to the credit bureau the borrower wished to approach or share information with. "If you become a co-guarantor to a loan, like taking a loan together with your spouse or friends, the defaults by the other person would also affect the credit history and your credit score," Mr Jayaraman said. He underlined the need to settle all matters with banks and other lenders to ensure that the credit history is more accurate.
He said it was necessary to have a credit history record , as it would make getting a loan easier and also prevent identity theft. "Ultimately, the best thing to do is to pay up as agreed with the lender. In case there is a genuine reason for delay on repayments, talk to your bank. Most of them are ready to help, because it is not in their benefit to spoil your credit score," Mr Jayaraman said.
Nifty may continue to see an upmove to the level of 5,000
The market brushed aside early hiccups and closed with good gains for a second day in a row. A recovery in the global markets assisted the gains. The Sensex and the Nifty opened higher from Monday's highs, but the indices couldn't sustain the levels and slipped into the red, but bounced back later.
The two days of gains have cancelled out the losses of 19 August 2011 and this also indicates that we are seeing a weak upmove. As we mentioned yesterday, the Nifty was near the 4,975 level (intra-day high of 4,966). However, it couldn't sustain that level and gave up some of the gains to close up 50 points.
If the upmove is sustained, it could be a slow move up till 5,000. However, if it falls from here, it may go down to 4,750.
The market opened in the green, following the positive trend in the Asian pack in morning trade. The Nifty opened with a gap-up of 26 points at 4,925 and the Sensex resumed trade at 16,447, a gain of 105 points over its previous close. However, the market soon dipped into the red in choppy trade.
Profit booking on yesterday's gains led the indices to their intra-day lows in the first hour of trade. At the lows, the Nifty fell to 4,864 and the Sensex to 16,213. The market perked up in subsequent trade on support from IT, technology, consumer durables and capital goods sectors.
The market resumed its northward journey in the post-noon session with the indices scaling intra-day highs. At the day's high, the Nifty rose 67 points to 4,966 and the Sensex advanced 207 points to 16,549. The market pared some of the gains and was range-bound in late trading, before closing 1% higher. At the close, the Nifty was 50 points up from its previous close at 4,949 and the Sensex gained 157 points to close at 16,498.
The advance-decline ratio on the National Stock Exchange (NSE) was 1120:557.
Among the broader indices, the BSE Mid-cap index closed 0.95% up and the BSE Small-cap index rose 1.16%.
With the exception of the BSE PSU index (down 0.02%), all other sectoral gauges registered gains. The top gainers were BSE IT (up 3.94%), BSE TECk (up 3.17%), BSE Capital Goods (up 1.69%), BSE Consumer Durables (up 1.48%) and BSE Bankex (up 0.81%).
TCS (up 6.66%), Bajaj Auto (up 4.27%), Infosys (3.64%), BHEL (up 2.65%) and Bharti Airtel (up 1.99%) were the main gainers on the Sensex. The laggards were led by ONGC (down 2.65%), Cipla (down 2.59%), NTPC (down 2.03%), Tata Motors (down 1.02%) and Maruti Suzuki (down 0.91%).
The major gainers on the Nifty were TCS (up 7.08%), Bajaj Auto (up 4.30%), Infosys (up 3.34%), Axis Bank (up 2.94%) and BHEL (up 2.88%). The top losers were ONGC (down 2.78%), Cipla (down 2.76%), Power Grid Corporation (down 2.08%), NTPC (down 1.72%) and Ranbaxy (down 1.38%).
Markets in Asia, which were upbeat following marginal gains in US markets overnight, also ended positive. Easing of China's manufacturing output in August, indicated by the flash HSBC PMI data, also supported the gains.
The Shanghai Composite rose 1.52%, the Hang Seng advanced 1.99%, the Jakarta Composite climbed 1.06%, the KLSE Composite gained 0.69%, the Nikkei 225 and the Straits Times surged 1.22% each, the Seoul Composite jumped 3.86% and the Taiwan Weighted settled 3.25% higher.
Back home, foreign institutional investors were net sellers of equities worth Rs786.32 crore on Monday. On the other hand, domestic institutional investors were net buyers of stocks worth Rs143.44 crore.
Reliance Industries has withdrawn from an offshore oil exploration block in the Sea of Oman, according to a media report. The decision follows an exploratory drilling campaign that failed to unearth any significant prospects. The stock gained 1.14% to close at Rs765.60 on the NSE.
Indian Metals & Ferro Alloys has announced that it has commissioned a 30MW dual-fuel captive power plant and has synchronized the same with the grid. The unit is running smoothly and the load will gradually be increased. As such, the company expects stable operations at optimal load within a month. The stock fell 0.89% to Rs375.05 on the NSE.
Hindalco Industries, the metals flagship of the Aditya Birla group, plans to raise about Rs8,000 crore through a debt issue. The proceeds will be used to part fund its Aditya Aluminium refinery project and a captive power plant in Orissa. The company's shares rose 0.59% to close at Rs145.25 on the NSE.
Barclays Capital has appointed Bhuvnesh Singh as head of its equity research team and Neel Shahani as the head of equity sales trading
The investment banking arm of UK-based Barclays Bank Plc, Barclays Capital has appointed Bhuvnesh Singh as head of its equity research team in India and Neel Shahani as the head of equity sales trading in the country.
Singh, who earlier worked at Credit Suisee, will be responsible for establishing and developing Barclays Capital's Indian equity research business, Barclays said in a statement.
Shahani, who joins from India Infoline Ltd, will establish and manage its execution and sales traders team in India, the statement added.