How to Track Personal Loan Application Status Online?
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Symbol | Rating Scale | Credit Risk |
---|---|---|
AAA | Excellent | Lowest |
AA | Very good | Very low |
A | Good | Low credit |
BBB | Average | Moderate credit |
B | Low | High credit |
C | Poor | Very high |
D | Defaulted | Default |
Score | Creditworthiness | Meaning |
---|---|---|
NA | Not applicable | You have yet to apply for your first loan |
300-549 | Poor | You have a history of skipping EMIs and defaults. The lender will not approve a loan with this score. |
550-649 | Fair | It means you made several irregular EMI payments and had multiple hard enquiries on your profile. A credit score in this range may lead to loan rejection. |
650-749 | Good | It means you have demonstrated good credit behaviour in the past, but there are still a few flaws that could prevent you from getting low-interest loans. |
750-799 | Very good | It means you made on-time EMI payments and have a solid credit history. With this score, your lender considers you a low-risk borrower and may offer you a favourable rate on your application. |
800-900 | Excellent | This score demonstrates that you are exceptionally good at managing your finances and have never missed a debt repayment. The lender will grant you a larger loan with lower interest rates and a favourable repayment period. |
Parameters | Credit Rating | Credit Score |
---|---|---|
Meaning | It informs lenders and the general public about a company's or government entity's creditworthiness. | It provides the lender with information about the individual's credit behaviour. |
Influencing factors | Credit rating agencies base their decisions on a company's financial statements, borrowing habits, and repayment history. | The credit score is determined by factors such as credit mix, recent loan acquisition, credit utilisation rate, debt settlement cases, and so on. |
Who decides? | Credit rating is decided by agencies such as CRISIL, ICRA, CARE, etc. | A credit score is decided by the CIBIL, Experian, CRIF High Mark, and Equifax. |
Range | AAA to D | 300 to 900 |
How to improve? |
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The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.
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