Home loan defaulters fall as credit scores rise
The Credit Information Bureau of India, or Cibil, says that there is a less chance for home loan defaulters, as most individual borrowers taking home loans from banks have very high credit scores.
Cibil provides home loan for individual borrowers. The CIBIL Transunion Score is a three-digit number ranging between 300 and 900 assigned to borrowers, depending on their repayment habits.
Customers who are having credit scores closer to 900 are the least risky. More than 88 per cent of new home loan borrowers acquired by banks during 2011 had a credit score of 750 and above, the agency said in a recent report.
According to bankers, there are two kinds of home loan borrowers: a) those with a credit history and are therefore tracked by credit bureaus, and b) those approaching a bank for the first time. The latter can be riskier as they do not have a recorded credit history.
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Source: DNA
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