Latest news with #CIBIL
Time of India
a day ago
- Politics
- Time of India
Expedite selection process for govt scheme benefits: DC
Mangaluru: Deputy commissioner Darshan HV instructed govt departments to expedite the selection process of beneficiaries of schemes under various corporations and approve the benefits quickly. He spoke while presiding over a meeting of various committees of the social welfare department, at the deputy commissioner's office on Friday. He emphasised that it is not appropriate to delay processes such as the verification of beneficiary records, site inspections, and other procedures, as this results in eligible beneficiaries not receiving facilities in a timely manner. He advised that, if necessary, only the residential verification of beneficiaries should be conducted, and the facilities should be approved swiftly. To ensure equal access to beneficiary selection, a taluk-wise selection process will be considered, he said. The DC said discussions will be held with bankers regarding the rejection of applications under bank-based loan facilities due to low CIBIL scores. He instructed the officials of urban local bodies to report any accidents or deaths involving civic workers to the deputy commissioner office within 24 hours. The relief funds for civic workers should not be used for other purposes, he directed. Additional deputy commissioner G Santhosh Kumar emphasised that all departments should promptly select beneficiaries for SCP/TSP schemes and utilise the funds within the stipulated time. Hemalatha S, the deputy director of the social welfare department, said that in Dakshina Kannada, 24 Dalit atrocity cases were registered until the end of May 2025, and compensation of Rs 22.1 lakh was provided in 16 of these cases.
Hindustan Times
2 days ago
- Business
- Hindustan Times
What Is a Credit Card? Everything You Should Know
With increasing per capita GDP growth at an all-time high in India, the disposable income of the common man has also increased. Despite this, certain products and commodities may still be out of reach. In such cases, credit cards can be a handy financial tool. They offer not just the ability to own expensive products but also a great deal of financial flexibility. So, before you apply for a credit card, here are some key details worth knowing. Unlike debit cards, credit cards allow you to spend more than the amount available in your bank account. Using a credit card is like taking a short-term loan to purchase something you otherwise would not be able to with your existing monthly income. So, when you buy anything using this card, the issuing bank pays the seller the full amount on your behalf. The basic functionality of this card is that you do not have to pay any interest on this credit for at least 20 to 50 days. After this, the issuing bank sends you a statement which tells you the deadline for when you need to pay up the credit amount. In case you are unable to pay up the full amount at once, the bank may even offer you the option to pay it in parts (with interest levied). This completes one billing cycle, which is repeated once you pay off the full amount you borrowed on your credit card. When choosing which credit card to apply for, you must remember that each has its own set of benefits and drawbacks. The types of cards can also differ from bank to bank. Nevertheless, there are some common types that you should look out for. These are standard-issue cards that almost all banks offer. They are the most suitable cards for beginners. If you are looking for a simple means of borrowing money, then standard credit cards are the way to go. If you have been using credit cards for some time, then you can upgrade your standard card to a rewards card. These cards have several perks like reward points, cash back, and even travel miles, which can be easily redeemed. For someone who uses credit cards quite frequently, balance transfer cards can be a lifesaver. These cards offer little to no interest levied on balance transfers. This can enable you to consolidate and pay off credit loans easily. Some banks offer secure cards which are issued against collateral such as a fixed deposit. If you have a poor credit history (i.e., a CIBIL score less than 600), then these cards are ideal for you. Regardless of which card you choose, credit cards in general have several advantages. Despite all the benefits associated with using credit cards, you should always exercise a level of caution. These cards may be misused, but more importantly, they carry some form of risk that you should be aware of before applying for one. Some of them may include: However, with impeccable financial discipline, a credit card can become one of your most valuable financial tools. To sum it up, credit cards can be both a powerful financial tool and an instrument of financial demise. It depends on how well you are able to leverage its benefits and avoid the drawbacks. With good financial discipline, it is not very difficult to make a credit card your companion in all major high-value purchases. Note to readers: This article is part of HT's paid consumer connect initiative and is independently created by the brand. HT assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently. Want to get your story featured as above? click here!
Indian Express
4 days ago
- Indian Express
Noida: Woman duped of Rs 65 lakh by her ‘live-in-partner' whom she met via popular matrimonial website
Two months after the disappearance of her live-in partner, whom she had met via a popular matrimonial website, a Noida-based woman, working for a multinational firm, allegedly realised that her nine-month-long relationship was a sham. The woman was duped of Rs 65 lakh in total as the man allegedly used her bank account details to transfer money and even ended up taking a loan of Rs 40 lakh in her name, said police. Addressing a press conference on Tuesday, Additional Deputy Commissioner of Police (ADCP) Noida, Sumit Kumar Shukla, said, 'During their time together, the man allegedly convinced her to transfer Rs 25 lakh directly into his account and also manipulated her into taking a Rs 40 lakh loan in her name — the proceeds of which he also siphoned off into his account,' Shukla said. 'The accused had gained her trust by claiming that he previously worked for the Central government, and had taken early retirement to start a business,' said an officer. After two months of him being untraceable, the woman and her family registered a complaint on Sunday, the official added. They had initially tried to find him on their own, fearing that he might have met with an accident or might need help. Upon discovering the account details and the unauthorised loan, she realised she had been defrauded and approached the police. According to the police sources, the accused had secretly installed a mobile application on the woman's phone, which he used to transfer funds without her knowledge. He also allegedly blocked her bank SMS alerts, ensuring that she remained unaware of the financial transactions. 'Her high CIBIL score and clean financial history made it easy for the loan to be approved in her name,' an officer said. A case has been filed at Sector 58 police station under charges of cheating and fraud. 'Two police teams have been formed to track the accused. All efforts are being made to arrest him,' an official police statement read. Meanwhile, it is yet to be confirmed if the man was using a false identity.
Mint
5 days ago
- Business
- Mint
What is DPD in a credit report and why does it matter?
Credit cardholders and loan borrowers need to ensure the repayment is made before or by the due date. Timely payments help in maintaining and/or improving the credit score. A good credit score is important for getting new credit cards and loans. While processing new credit applications, banks look at the applicant's past repayment track record. It can be tracked through the Days Past Due (DPD) parameter in the credit report. In this article, we will understand what is DPD, various values reflected under DPD status in the credit report, and their implications. The Days Past Due or DPD status in a credit report reflects the number of days by which a credit cardholder or loan borrower has delayed a repayment. Banks report the repayment status for credit card outstanding and loan EMIs to Credit Information Companies (CICs) like CIBIL on a fortnightly basis as per RBI guidelines. The CICs like CIBIL process the information and update it in the individual's credit report. The credit report gives a month-wise repayment status of every credit instrument availed by the borrower. For example, suppose an individual holds a credit card from HDFC Bank. The credit report will reflect the monthly payment status for the card. The status is displayed month-wise for the last 36 months, starting from the latest month. Let us understand how the DPD status is reflected in the credit report and the meaning of each status. The month-wise DPD status in the credit report shows one of the following. DPD status 0: When the DPD status for any month is displayed as 0, it means the repayment has been made before or by the due date. You must always aim to make every repayment before or by the due date. When you do that, the bank reports the DPD status as 0 to the CIC, and the CIC further updates the same as 0 in your credit profile. When you make timely repayments month after month, you demonstrate a good repayment track record. The DPD status as 0 reflects good credit behaviour. When you apply for a new credit card or loan, the bank will check your credit report for the past payment track record. When they see a good payment track record, the chances of the credit application getting approved increase. Timely repayments have the highest weightage in the calculation of your credit score. Thus, when your DPD status is 0 with every passing month, it contributes towards improving your credit score. DPD status XXX: In some months, you will see the DPD status displayed as XXX. It means, the bank has not reported your repayment status for that particular month to the CIC. You don't have to worry about it, as it doesn't have any negative implication on your credit score. If your DPD status is anything other than 0 or XXX, you need to check further. Before we look into these statuses, let us understand how the DPD is calculated in the event of delayed repayment(s). Whenever a loan EMI or credit card outstanding is delayed beyond the due date, the DPD is calculated as follows. The DPD is the difference between the current date and the due date. For example, suppose the current date is 1st May 2025, and the loan EMI repayment date was 1st April 2025, and the EMI repayment is still pending. The DPD will be the number of days between the current date and the EMI repayment due date. In this case, the DPD will be 30 days. The bank will report the 30 days repayment delay to the CIC, and the CIC will update the DPD as 30 days in the borrower's credit report. Any repayment delay will impact your credit score negatively. Now, let us understand the DPD status for a delayed repayment. Depending on the duration for which a repayment has been delayed, the DPD status will be as follows. STD: The DPD status as STD or Standard means the repayment delay is less than 90 days. Every repayment delay impacts the credit score negatively. However, as the account is still standard, the impact may be less severe. The DPD status as STD or Standard means the repayment delay is less than 90 days. Every repayment delay impacts the credit score negatively. However, as the account is still standard, the impact may be less severe. SUB: The DPD status as SUB or Sub-standard means the repayment delay is more than 90 days. A credit account where the delay has crossed 90 days is classified as a non-performing asset (NPA) as per RBI guidelines. The DPD status as SUB or Sub-standard means the repayment delay is more than 90 days. A credit account where the delay has crossed 90 days is classified as a non-performing asset (NPA) as per RBI guidelines. DBT: The DPD status as DBT or Doubtful means it has remained a Sub-standard account for a period of 12 months. The probability of collection from a doubtful account is low. The DPD status as DBT or Doubtful means it has remained a Sub-standard account for a period of 12 months. The probability of collection from a doubtful account is low. LSS: The DPD status as LSS or Loss means a loss has been identified and remains uncollectible. When you apply for a new credit card or loan, the bank will check your credit score and profile. In the credit profile, they will check the DPD status of your existing/closed credit cards and loans. If the DPD status of all past repayments is either 0 or XXX, it will be viewed positively. The chances of the new credit application getting approved will increase. If the bank comes across any DPD status apart from 0 or XXX, it will check further details. A DPD status like STD, SUB, DBT, LSS, etc., can reduce the probability of the new credit application getting approved. You need a good credit score to improve the chances of your credit card or loan application getting approved. Some steps to increase and maintain a good credit score include the following. Timely repayments: Always pay the credit card outstanding and loan EMI before or by the due date. It will ensure the DPD status is 0. Always pay the credit card outstanding and loan EMI before or by the due date. It will ensure the DPD status is 0. Lower credit utilisation ratio: The credit utilisation ratio measures the percentage of credit used from the available credit limit. A credit utilisation ratio of 30% or lower is considered good. The credit utilisation ratio measures the percentage of credit used from the available credit limit. A credit utilisation ratio of 30% or lower is considered good. Healthy credit mix: An individual should have a healthy credit mix of secured loans (for example, home loan, vehicle loan, etc.) and unsecured loans (for example, credit card, personal loan, etc.) An individual should have a healthy credit mix of secured loans (for example, home loan, vehicle loan, etc.) and unsecured loans (for example, credit card, personal loan, etc.) Make one credit application at a time: An individual should make one credit application and wait for the bank to give its decision. Making multiple applications within a short period is considered credit-hungry behaviour by banks. An individual should check their credit report regularly. They should monitor the DPD status and other details. If the DPD status is anything other than 0 or XXX, it should be checked further. Always make timely payments so that the DPD status is 0. It helps in contributing towards increasing the credit score and maintaining it healthy. It also increases the chances of new credit applications getting approved. Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached at LinkedIn.
Time of India
5 days ago
- Business
- Time of India
No credit score? No problem: How a new fee system is helping India's invisible students stay in college
Many students, especially those from smaller towns and low-income families, are often left out of the formal education finance system for various reasons. However, a new kind of fee payment model is quietly removing these barriers, allowing them to continue their education without loans or credit checks. Across India, thousands of students sometimes miss out on the opportunity to obtain traditional education loans because their families don't have a stable income, a credit history, or formal employment. These include children of gig workers, farmers, small business owners, first-generation learners, and students from Tier-2 and Tier-3 cities. For them, even after clearing entrance tests or getting admission, paying fees on time is a hurdle. 'There is a Rs 9 lakh-crore education funding gap. Over 90% of the students are paying out of their own pockets. There are no proper financial solutions supporting them. Also, the fee structure of educational institutions is not very supportive. Colleges pressurise students to pay upfront, pay in bulk, or pay fees onetime. So we are still not able to support the aspirations of the students,' said Gunjal Kothari, founder of Flashaid, a fintech specialising in education funding. A new alternative: EMI-based fee payment, without loans 'There are so many students who are sons of farmers, small shopowners, daily- wage workers. They might not be using things like credit cards, ITRs or have a steady income stream. Fees are continuously rising and this rise comes without notice. You cannot put your child in a lower category of school or college,' said Kothari. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like To address this challenge, some institutions have started offering a structured EMI-based fee payment model that does not require a bank loan , credit score, or collateral. These systems allow students or their families to pay tuition in monthly installments, usually through UPI or NACH-linked auto-debits. No paperwork, no interest rates, no long waiting periods. 'Even colleges want good students and a good student does not mean a good CIBIL score. This parameter itself is a huge deterrent for colleges to get good students. All the fintechs, NBFCs want CIBIL score, credit proof and several other documents. So, students who cannot provide these documents, this EMI-based tuition fees is huge support to them. Even if a student is unable to pay regular EMIs, there is an option of flexible EMIs backed by insurance. In scenarios like job loss, business shutdown, health issues, hospitalisation, sudden death of an earning member, the burden of fees doesn't bother the family,' said Kothari. This approach is not tied to banks or NBFCs, making the new alternative more accessible to people with no formal credit footprint. Live Events What makes this system different Unlike loan-based options, these fee models are built for simplicity and predictability. Here's what sets them apart: No credit checks: Anyone can apply, regardless of income documents or credit score. Digital setup: Payments are automated, reducing follow-ups and delays. Insurance backing: In some cases, the system includes basic coverage for fee protection in case of events like job loss, disability, or death of the earning parent. This structure ensures that the institutions receive steady payments, and the student's seat isn't at risk due to sudden financial shocks. Who is benefiting Students with no access to formal banking, especially those whose parents work in unorganized sectors such as delivery, housekeeping, construction, or freelance gigs, are among the early beneficiaries. The model is also proving useful for students who switch from one course to another mid-year and face additional payment deadlines. What this means for the future As more colleges adopt digital and flexible fee systems, the gap between eligibility and affordability may start to narrow. While it's not a replacement for full scholarships or education loans, this system is becoming a practical bridge for students who would otherwise be pushed out of the higher education system due to financial limitations. The fee model reflects a broader shift in India's approach to financial inclusion, making education a right, not a privilege, regardless of paperwork or bank history.
