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How much CIBIL Score Required for Home Loan

So, you have finally decided to become a homeowner. You have everything planned, down to the decor and the colour of your walls. But for a home, you need a home loan. And for a home loan, you will most likely need a good CIBIL score. But how much CIBIL score do you require for a home loan, and how to get it?

What is a CIBIL score?

A CIBIL score is a metric of measurement used by most lenders to judge your repayment abilities. Since the RBI authorizes it, most lenders consider the CIBIL score as one of the most critical factors of your home loan application. It is a three-digit number and ranges between 300 to 900. CIBIL evaluates your payment history, credit handling trends, and existing banking to arrive at a final score.

CIBIL score for a home loan

Ideally, the CIBIL score required for a home loan is 750 and above. It is the ideal score for anyone to have since it demonstrates a good credit history. You are still eligible for a home loan if your score is between 650-750. However, having a CIBIL Score between 650 -750 will make the lenders look more closely at your finances. Most lenders consider a score of 650 as the minimum requirement for a home loan. 

Additional Read: Do Credit Scores Affect Your Home Loans?

Benefits of a good CIBIL score

A good CIBIL score can ensure that you get a low home loan interest rate. Also, it gives you more negotiating power, more significant loan finances, and flexibility in repayment. However, if you do not have a good score, it can get challenging to get a home loan.  Lenders may take longer to approve it. You might receive higher interest rates, less flexibility in repayment, as well as only partial financing. 

How to improve CIBIL score

If you do not have a good score yet, don’t worry. You can still improve your home loan CIBIL score. Since your CIBIL score demonstrates your ability to repay – consider doing the following: 

  • Keeping credit utilization under 30%
  • Paying your EMI’s on time
  • Paying your credit card bills on time
  • Monitor your credit report regularly

These steps should improve your credit score and allow you to get a lower home loan interest rate. 

In case you do not want to do the above, consider applying for a loan with a co-applicant. The co-applicant should be someone with a high CIBIL score. This will improve your chances of getting a home loan quickly. 

Additional Read: Is It Possible to Improve Your Home Loan Eligibility?

An ideal solution for your home financing needs

Are you considering getting a home loan? Not sure what your options are with your current credit score? If yes, then the most important thing for you is to choose a well-reputed lender. 

 If you or a loved one needs a home loan, then reach out to Tata Capital today. You can avail reliable consultation on your financing options, as well as your CIBIL score. Also, you can take advantage of Tata Capital’s competitive interest rates, multiple financing options, and flexible repayment options. 

Your dream home awaits you. Apply for a home loan with Tata Capital today. 

What is Builder Floor Apartment?

Homebuyers these days are exploited with an extensive range of choices. In this buyer-driven market, the developers closely monitor the spurting tastes and take prompt action. Such builders hunt every opportunity to introduce a new design that matches with their changing lifestyle. One such development is a builder floor apartment.

What is a builder floor apartment?

A builder floor apartment is a residential unit in low-rise buildings. These buildings generally have two to four floors with apartments of the same configuration. Each floor is an independent unit. The floors can be developed by the builder on his own or in collaboration with the landowner.

Many times, the original owners redevelop an existing structure by adding more floors to a building and sell it to independent people. In metro-cities, the builders retain at-least one floor since the land price accounts for the majority of the property value.

Although skyscrapers leave some people awestruck, there is a growing desire among buyers for independent living. The advent ofbuilder floor apartments has met the needs of those who fancy independent living but are constrained by the high prices. This is an innovative solution to match luxurious lifestyle tastes with feasible prices.

Additional Read: Top 5 Real Estate Brands Offering Duplex Apartments in Mumbai

What are the benefits of a builder floor apartment?

The builder floor apartments are a growing choice among people who crave for independent living. This type of apartments can benefit you in the following ways:

  • These apartments allow you to own independent floors at feasible rates. In comparison to independent bungalows or villas, these apartments are more affordable.
  • The buyers of builder floors have the freedom from paying maintenance or other charges which are mandatory in developer projects with multiple facilities. The buyers only need to opt for facilities they actually use.
  • The original owners of a property can restructure their property into builder floor complexes and sell it to friends, extended family or like-minded people to build their own community.
  • The separation of water, electricity and other charges for each floor avoids disputes. This also ensures that independent owners have more control over their expenses.

Buying abuilder floor apartmentis considered to be a lifestyle choice by many experts. So, if you are looking for a new place, this is just the choice for you. It saves you from the charges paid in developer projects for multiple utilities. You have control over the amenities you need and pay for. Moreover, who doesn’t like an independent lifestyle!

Additional Read: Want to Own a Home? Find Out How to Buy a Home

If you are planning to buy a home, Tata Capital is the destination for all your financial needs. Our expertise and excellent customer service make us India’s one of the most trusted sources for loans. We provide hassle-free home loans with minimal documentation.

We provide attractive home loan interest rates. For a faster process, check your home loan eligibility using our online calculator.

Get in touch to learn more about our loan products and how you can upgrade your lifestyle with them.

How to Make Online Weddings Memorable?

Are you one of those to-be-weds who’ve had to make the tough decision of cancelling their D-Day celebrations due to the lockdown? If yes, then you’re not alone. Thousands of couples in India didn’t get to complete their nuptials due to the coronavirus paying an unwelcome visit.

But worry not! There are still many ways you can tie the knot, even in these challenging times. As you may know, the lockdown has pushed everything online, from grocery shopping to attending lectures. Guess what else has gone online? Indian weddings! Yes, the lavish affairs are now playing out as virtual weddings on video calls with hundreds of attendees.

Additional Read: This Wedding Season Get Ready for The New Normal Post Lockdown

It’s different, it’s new, and it’s still high on energy. Also, online weddings are not as stressful as their physical, in-person counterpart. If you’re planning your own online ceremony, here are some tips to make it memorable.

Choose your platform

Lockdown has introduced us to a world of video conferencing platforms, be it Google Meet, WhatsApp Video call, or the most popular, Zoom. There’s also the option of online streaming worth considering. You can host your wedding celebrations or rituals live on Instagram or Facebook and share the real-time link with your loved ones. You can also go the extra mile and leave the stream open for the world to see.

Another great idea is to play a slideshow of photographs or your videos as a couple in the background to reminisce the older, simpler times with your loved ones.

Food and catering

Since food is an integral part of Indian weddings, a ceremony without Indian delicacies is no ceremony at all. To take care of the food situation, you can deliver meals and cocktails right to the guests’ doorstep, along with the menu. If the guests live too far off, you could send them a recipe of the food and beverages. This way, you could share the same hearty meal from the comfort of your homes.

Online Sangeet and Mehendi

Virtual weddings aren’t only restricted to final day rituals and celebrations. Indian weddings have many events lined up until the final event, which translates to more virtual festivities for you and your guest list.

Fun occasions like Mehendi and Sangeet can be hosted online, and enhanced by choreographed performances from relatives, playing a Mehendi playlist for the ladies, and featuring games and other amusements.

Additional Read: How to Host a Fun Sangeet Ceremony Online

E-viting the guests

Extend the ‘Everything Virtual’ theme by sending online wedding invitations through emails or text. Make sure to tailor the message to the theme of the wedding to make the invitations seem more direct and intimate.

Set the scene

Hire a florist or a decorator to make your main wedding frame a treat for the guests’ eyes. Also, if you have a backyard, you could put it to fair use by accessorising it with drapes, buntings, arches, and many other trinkets and ornaments. You could also set a dress code for the guests to spice things up and make it more interactive.

Are you looking to have your own virtual ceremony? If yes, then Tata Capital has got the right loan for you so that you don’t have to tap into your savings. Apply for Tata Capital’s marriage loan today and enjoy flexible tenures and attractive marriage loan interest rates.

List of Documents Required for Pradhan Mantri Awas Yojana

Pradhan Mantri Awas Yojana is a Centrally Sponsored Scheme (CSS) aligned with the “Housing for All” initiative. This scheme aims to rehabilitate slum dwellers and provide Credit Linked Subsidies (CLSS) to the Economically Weaker Sections (EWS), Lower Income Groups (LIG) and Middle-Income Groups (MIG). PMAY has two verticals- PMAY- U (Urban) and PMAY- G (Gramin) and covers 4, 041 statutory towns.

Credit Linked Subsidy (CLSS) means that beneficiaries will be able to avail home loans at a subsidised interest rate; however, to apply for a home loan, you need to submit some documents along with the application. Here is a checklist of all the documents required for Pradhan Mantri Awas Yojana as a salaried or a self-employed individual.

Salaried

As a salaried applicant, you need to have documents for proof of identity, address, income and purchase of a property.

Self-employed

If you are a self- employed applicant, in addition to all the documents listed for salaried applicants, you need to have documents for proof of either a business entity or a firm, depending on the nature of your enterprise.

Here is a list of all the documents required.

Proof of identity

Besides PAN card which is a mandatory requirement for both salaried as well as self- employed applicants, you can present the following documents as proof of identity to apply for PMAY.

  • Aadhar card
  • Voter ID
  • Driver’s license
  • Passport
  • Photo- ID issued by the government
  • A Letter (not older than 30 days) with a photograph from a recognised public servant or a public authority that verifies your identity.

Additional Read: What is the Eligibility for PMAY Scheme?

Proof of address

The documents listed as proof of identity can be presented as proof of address as well, additionally, the following documents can be used:

  • Ration Card
  • Bank statements reflecting address
  • Rent agreement on stamp paper
  • Residence address certificate
  • Life insurance policy
  • Latest utility bill (phone, light, gas bill)
  • Credit card statements
  • Sale deed copy
  • Property or municipal tax receipt
  • Self or family pension payment orders (PPO) issued by Govt, employees, departments or public sector undertakings
  • Letter of allotment of accommodation from employer issued by State or Central govt. departments, scheduled commercial banks, financial institutions, statutory or regulatory bodies and public sector undertakings and listed companies
  • Leave and license agreements with the above-mentioned employers allotting official accommodation
  • Letter issued by a foreign embassy or mission in India and documents issued by Govt. Departments of a foreign jurisdiction

Proof of income

The following documents can be presented as proof of income while registering forPMAY:

  • Income Tax Returns receipts
  • Salary slips from the last two months
  • Last six months bank statements
  • A detailed balance sheet with profit and loss account (in case of own business)
  • Business account log audited and certified by a CA

Proof of purchase of property

The following documents can be used as proof of purchase of property while registering for PMAY:

  • Sales deed
  • Sales/ purchase agreements
  • Property registration certificate
  • Copy of receipts(s) made in the name of the developer

Proof of business entity

The following documents can be presented as proof of business entity while registering:

  • Shops and establishment certificate
  • Pan card
  • Sales tax
  • VAT certificate
  • SSI registration certificate
  • Trade license certificate

Additional Read: What are the Benefits of Pradhan Mantri Awas Yojana Scheme?

Proof of a firm

The following documents can be presented as proof of a firm while registering:

  • Partnership deeds
  • SEBI registration certificate
  • Factory registration certificates
  • Export-import code certificates
  • Qualification or degree certificate in case of professionals
  • Registration No. Issued by ROC

Now that you have a list of all the documents required for PMAY, get in touch with Tata Capital for more information on benefits under the scheme.

What is Home Loan Amortization Schedule and How to Read One

Loan amortization refers to the process of reducing debt liability with regular payments over the term of the loan. A home loan amortization schedule is a tabular representation of periodic loan payments. It shows the principal component and the interest component that comprise each instalment until the end of the term when the loan is paid off. It can help you keep track of how much you owe and when a payment is due.

What is an Amortization Schedule?

Before you apply for a home loan, use a home loan amortization calculator to get the amortization schedule. To help you read it correctly, we have explained the essential elements of an amortization table below.

  • Instalment Number – Every instalment will have a unique serial number, and payment details will be listed in the corresponding rows.
  • Due Date – It is the date on which an instalment becomes due.
  • Opening Principal – It is the principal amount at the beginning of each month. The interest is chargeable on this amount.
  • Instalment Amount – It is the monthly repayment amount or the EMI which may or may not change with fluctuations in the interest rate over the years.
  • Principal Component – It is the component of the EMI that goes into repaying the principal amount of the home loan.
  • Interest Component – It is the component of the EMI which is dedicated to the payment of the interest on the opening principal amount.
  • Closing Principal – It is the principal amount that remains to be repaid after the payment of each month’s EMI. It is equal to the opening principal amount for the next month.
  • Interest Rate – This is the yearly interest rate or the interest rate per annum and may vary based on the lender. The interest rate is used to calculate the EMI.

Additional Read – Tips and Tricks to Reduce Home Loan EMI

When you read the amortization table, you will notice that early on in the schedule, the majority of each payment is what is owed in interest. However, later on in the schedule, the majority of each payment covers the principal amount of the loan.

Why do you need to know your EMI in advance?

  • Knowing Your Loan Eligibility – An amortization table lets you know the exact amount you need to pay as EMI every month for loan repayment. It helps determine your home loan eligibility.
  • Budgeting – Knowing the exact amount you are going to have to pay as EMI helps you mentally and financially prepare for what’s coming. Therefore, you will be able to plan other expenses around your monthly EMI.
  • Planning Out Loan Repayment – Once you know the exact amount you will need to pay each month as EMI, you can decide whether you will be able to shell that amount every month or not. If not, you can look into other options like increasing the tenure to plan out a convenient repayment.

Additional Read – How Can A Home Loan Calculator Help You Plan Your Finances Better

Need a home loan? Tata Capital has years of experience in the industry and offers attractive home loan interest rates and with minimal required documents. For more information, and to use our home loan EMI calculator, visit our website.

Indian Festive Season: The Best time to buy Bike

When is the best time to buy bike? – If you have the same concern, you may want to wait till the festive season arrives.

The festive season in India is observed every year, from the start of Navratri to a few weeks post-Diwali. But celebrations aside, the season of festivals in India also accompanies the season of purchases. As markets become abuzz, you know the festive discounts are unmissable – especially if you have your heart set on a prized bike or scooty.

Best of all, the festive season comes with highly attractive two-wheeler loan offers to finance your bike or scooty purchase.

Here is why you should buy a new two-wheeler in the Indian festive season.

Attractive offers

If anything, the final quarter of the year is marked by attractive festive season offers, especially in the auto sector. Buyers can secure exchange deals, loyalty exchange bonuses, free accessories, vouchers, sale discounts, and service benefits, among others, and save a considerable sum.

Interested buyers can seize the opportunity to make a worthwhile purchase. What’s more, you can easily avail of a loan to finance your bike purchase.

Festival discounts

Since the demand for vehicles is usually high in the festive season, automakers offer heavy discounts on select two-wheeler models. You can buy one at a lower price than normal and save money.

Buyers also receive various benefits on their purchase, which may include an insurance policy, roadside assistance, cash vouchers, corporate discounts, and much more. Besides, certain sections of society like defence personnel also receive additional discounts on purchases such as add-on accessories, cash vouchers, etc.

Arrival of new models

From the new age Hero electric scooters to the much-awaited Pulsar NS250, the festive season this year has a lot of new two-wheeler models in store for us. You can expect numerous offers and discounts to accompany every launch. Even lenders offer highly lucrative deals on both bike loans, and scooty loans come the festive season.

Additional Read: Top Bike Brands of India in 2021

Awesome deals on bike loan

As the festive season increases the demand for two-wheelers, many lenders come forth with brilliant deals on loans. From the bike loan interest rates to loan tenure and EMI payments, you can expect a comfortable and smooth transaction process.

Most lenders will approve and disburse the loan right away. Moreover, some lenders also offer waivers on the loan processing fee, while additional concessions are provided to borrowers who secure a loan online.

Undoubtedly, the festive season is the best time to buy scooty or any two-wheeler in India. You can score the best Diwali offers on bike, at relatively lower prices, with numerous add-on benefits.

Additional Read: 4 Reasons Why You Should Opt for Loan While Buying Two-Wheeler

Want to buy a two-wheeler?

You can secure quick and easy loans at competitive bike loan interest rates only at Tata Capital! Our loan process is hassle-free with a minimal documentation process. We also offer a zero-down payment bike loan, so you do not have to bear any initial cost on the bike purchase. For more details, contact us today!

List of Some of the Best Business Ideas You Can Use Post Lockdown

The coronavirus pandemic did bring the country to a standstill, but it also led to some much-needed change. We’re now seeing many new businesses cropping up as isolation allowed individuals to tap into their unrealized potential and take up new projects. Read ahead to know more about some post lockdown business ideasyou can use if you have entrepreneurial ambitions.

A New Era of Businesses Post Lockdown

The initial phase of this pandemic was quite a scary one, and while it still is, people are starting to see how it opens new doors to business ventures that are supported by remote work possibilities. The new norms of social distancing and isolation will surely change the post lockdown world, but potential opportunities will pave the way for innovative business ideas.

Since most interactions are now virtual, online-based businesses face massive revenue opportunities since their mode of operation is suitable to the safety standards needed today. No wonder, several organizations are increasingly leaning towards strategies that use technology, which will ultimately become the post lockdown businessnorm. 

Additional Read: How taking your business Online would Help in a Post Lockdown World

Business Ideas in the Post Lockdown Era

You can capitalize on the following post lockdown business opportunities that also leverage technology.

Local doorstep delivery services

Doorstep delivery services are becoming increasingly popular, as it is indeed safer for consumers to receive essentials at home. Hence, starting a delivery service makes for one of the best business ideas post lockdown in India.

How can you start a small-scale delivery service? Shortlist local vendors and shopkeepers that stock both essential and non-essential supplies, but don’t offer doorstep delivery to customers. You can collaborate with such businesses and become their delivery partner. Hire a small team of deliverymen and invest in either developing a GPS-sensitive UI or subscribing to a pre-existent tracking app for ensuring seamless deliveries.    

Additional Read: Check Out the Way Businesses are Evolving in a Post Lockdown Period

Healthcare products

Nobody can underestimate the increased importance of healthcare products – masks, hand sanitizers, disinfectants. This presents a lucrative business opportunity if you intend to start a small manufacturing unit or are already running one. Redirecting production, even temporarily, towards churning out healthcare items can lead to considerable profits. After shifting the manufacturing focus, you can directly contact local retailers, wholesalers, and shops to sell your wares.

Cleaning service business

Cleanliness is paramount amidst this pandemic, which creates an attractive business opportunity for providing cleaning services such as disinfecting houses, offices, open spaces, and more. To do this, you can set up an agency and hire reliable workers who are already looking for work. After which, you can start collaborating with other organizations on a contractual basis to send your man-force for cleaning purposes.

Additional Read: A Complete Guide for Businesses in Post Lockdown Era

Facing a Cash Crunch? Use a Business loan as a Launchpad

These post lockdown business ideaswill only be successful when you make the required capital investment to start them. Hence, you can opt for a business loan to get financial support and kick-start your business.

What’s more, during these challenging times, numerous lending institutions have slashed their interest rates on loans, which makes today the best window to borrow a business loan.

Tata Capital Business Loans for Dependable Support

Are you scouting for the right lender? If yes, then your search ends at Tata Capital. We offer affordable business loan interest rates, flexible EMIs, along with a hassle-free online/ offline application process.

To know more about our offerings, get in touch with us today!

Why Is It Always Better to Buy a Vehicle on Loan?

Got a biker spirit and surplus cash ready for purchase? Get a bike loan instead!

Contrary to popular belief, a vehicle loan is not a massive burden to bear. With comfortable interest rates, loan tenure, and repayment terms – you can easily afford your favourite bike and save personal funds.

Here’s why you should always purchase a vehicle on loan.

For salaried and self-employed

Both salaried and self-employed individuals can avail a two-wheeler loan, unlike other loans with strict eligibility criteria. Even if your salary is not within the taxable income range, you can still avail this loan.

You only need to meet certain employment criteria albeit you meet other eligibility conditions of income, age, etc. To avail a loan, you must have worked at least one year in the same company.

Flexible payment modes

Just as loan disbursement, the loan repayment process is also easier for a loan. Borrowers can choose from different EMI payment options to suit your monthly income flow.

Primarily, two modes of EMI payment options are available to borrowers –

  • Online payment via mobile phone or website
  • Offline payment via cheques

Save personal funds

Buying your dream bike with your personal funds? You should reconsider. Instead of spending your saved money on vehicle finance, you can put the funds to meet other important needs such as medical emergency, festive expenses, etc.

If you choose a zero down payment bike loan, you need not make any payments upfront. Moreover, a two wheeler loan has an easy disbursement process for minimal hassle, if any.

Additional Read: What is a zero down payment two-wheeler loan?

Attractive interest rates

The bike loan interest rate available in the market are highly affordable, especially for individuals with a lower salary bracket. Interested borrowers can choose either a fixed or floating interest rate based on preference.

In any case, borrowers receive favourable loan terms since online bike loan has become easier and quicker to obtain.

Collateral

For an unsecured loan, you need not provide a collateral to the lender. In that case, you will have the complete ownership over the vehicle upon purchase while you repay the loan.

However, if the loan is secured, your vehicle will be used as the collateral. Once the loan is repaid, you receive the complete ownership of the vehicle.

Compare lenders before you seal the deal

While most financing terms are relatively easy, lenders make the most difference. Always compare lenders on interest rate and EMI payment terms before you close the deal. That way, you can buy your dream vehicle without unnecessary pocket strains.

Additional Read4 Reasons Why You Should Opt for Loan While Buying Two-Wheeler

Make use of a bike EMI calculator online to make accurate EMI estimates. You can easily calculate the EMI amount you need to pay every month to service your loan, create a financial plan, and compare the lenders better.

Want to buy two-wheeler online? Let Tata Capital finance it for you. We offer vehicle loans at competitive interest rates with convenient repayment terms and EMI payments. Head over our website to learn more.

Get in touch with us today!

A Guide on How to Fill Your Business Loan Application Form in 2020

Back in the day, business credits had companies running from pillar to post. Fortunately, business loans have become far more comfortable to borrow today and are available in both online and offline modes.

A business loan now comes with a simpler application process, minimal documentation, and flexible eligibility criteria for quicker disbursal. 

It is important to practise due diligence when filling the application form. To that end, here is a business loan guide to walk you through the entire process, from start to finish.

Before You Apply for the Loan

Consider this: what do you need the loan for? Answering the question will help you streamline the type of loan you need to borrow for profitable returns.

A business loan is available under three categories to enterprises, namely Machinery Loan, Working Capital Loan, and MSME & SME Loan. Once you have settled the type of loan you want to secure, check the eligibility criteria with the lender of your preference.

In case you have queries, you can contact the lender and resolve the same. Alternatively, you can use a free eligibility calculator, readily available online to check if you are eligible for the loan or not. Doing this makes the loan process a lot smoother.

Standard business loan eligibility criteria include:

  • Applicant must be between ages 25-65 years
  • A registered accountant must audit your balance sheet
  • Business turnover needs to show an upward trend
  • Business must be profitable for three successive financial years

Additional Read: Step by Step Business Loan Application Process Explained

How to Fill a Business Loan Application Form?

You can fill the application form either online or offline, based on convenience. Either way, the loan application is typically divided into two sections – personal details and business details. For the personal details section, you should be able to furnish information for data fields such as your residential address, PAN card number, email address, and other necessary details.

On the other hand, the application form will have data fields for information such as annual turnover, nature of the business, and business vintage – the time for which your company has been in operation. Once you have filled the requested details, read the terms and conditions carefully before submitting the application form.

Finally, for a swifter loan application approval, use the following tips:

  • Double-check if you have filled in every question and checked essential boxes. A missing data field can delay the process further.
  • Prepare the essential documents well in advance, including KYC documents and bank statements. You should also be ready with a detailed business report on how you plan to use the borrowed funds.

Additional Read: List of documents you must have to get your business loan approved in 2020

  • You should ideally estimate the EMI for the stipulated amount before you apply. That way, you can quote a suitable amount in the application form to match your financial health, and avoid pocket strains.

In need of a business loan? Apply at Tata Capital to procure desired funds at highly competitive interest rates and convenient loan terms. Enjoy quick loan approval and disbursement with our easy, online documentation process.

Get in touch for further details!

What Is Company CIBIL Report?

A Company CIBIL Report or a Company Credit Report (CCR) is a record of the credit history of your company. The Credit Information Bureau (India) Limited (CIBIL) maintains records of all credit-related activities of companies and individuals, including credit cards and loans. This report is created from data submitted by lending institutions all over the country.

Just like the individual CIBIL score, your company CIBIL score indicates your repayment capability. Suppose you want to apply for a business loan to expand operations. When you approach a lender, they will assess your company CIBIL report to determine your creditworthiness. A high score will increase your chances of getting approved for the loan. Whereas a low score might result in rejection or high interest rates.

What is CCR?

This report serves as a record of the past behaviour of a company and shows its financial health. Lenders typically look at this report before granting a loan to understand a company – the ownership type, its parent or subsidiary organisations, the number of years it has been operating, etc. Older and established firms have a better chance of having a good credit report compared to startups, simply because they have already proved to be credible.

Additional Reads – How To Get A Business Loan For Start-Up In India?

You can improve your company’s credit report by taking a few simple steps like:

  1. Having a longer credit history.
  2. Having a high credit utilisation ratio.
  3. Having no outstanding debts and having a record of timely repayment of loans.
  4. Avoiding credit card defaults.
  5. Checking your credit report for accuracy. Sometimes, lenders can make errors while sending the information to CIBIL which can hamper your company’s CIBIL score.

The Company CIBIL Score is a 3-digit numeric summary of your company report, ranging between 300 and 900. The CIBIL rank is a number ranging from 1-10. While CIBIL ranks are only assigned to companies with current credit exposure of up to Rs. 50 crores, CIBIL scores are available for all individual consumers. Not having a CIBIL rank does not imply that the company is underperforming.

Additional Read – Check Out The Steps To Improve Your CIBIL Score to Get Business Loan

Components of Your CCR

Your company CIBIL report typically includes the following information-

  • Background information– The CCR begins by highlighting the background information of your company like ownership, parent and subsidiary companies, years of operation, etc.
  • CIBIL rank– This is similar to the individual CIBIL score and ranges between 1-10. The closer your CIBIL rank is to 1, the better your credit health.
  • Financial Details– The report also highlights important financial information about your company that determines the maximum credit that lenders can extend you.
  • Financial History– This includes your past financial details like repayment patterns, revenue generation, etc. that help lenders determine your creditworthiness and repayment capacity.

How to check company CIBIL score

The two main parameters that are used to check company CIBIL credit scores are repayment behaviour and credit utilisation.

Good credit habits and timely repayments can help in improving your CIBIL credit scores. Here are a few other points you should keep in mind if you want to improve your CIBIL score:

  • Keep track of your credit score so that if there is any issue or negative information, you can get it fixed.
  • Never cross credit limits and keep an old credit card with good records to improve your CIBIL score.
  • Do not apply for too many loans, since loan rejection negatively impacts your credit score.

Your company CIBIL report also keeps track of personal loans besides business loan. Your credit report includes all your transactions or defaults irrespective of the personal loan closure route you take. You must make sure that your lender updates the details to CIBIL after the closure of your loan. That serves as a basis for your CIBIL score evaluation. It would surely help you close the personal loans faster if the repayment options for the loans were flexible.

For a company to survive and flourish, having a good CIBIL report with decent scores is of utmost importance. It takes about 4-5 months of careful financial planning to improve your credit score, so start working on it today.

To conclude

If you’re looking for easy, collateral-free business loans with attractive business loan interest rates, get in touch with Tata Capital today.