‘Credit score is an efficient tool for banker to assess loan proposal’
   Date :04-Jun-2019

Business Bureau:
Speaking at the seminar held here recently, Chief Executive Officer of Nagpur Nagarik Shakari Bank Limited Subhash Godbole said that credit score was an efficient tool in the hands of bankers to assess the loanable amount to any person. He also said that higher the credit score there were higher of getting competitive interest rates and other terms and conditions. Godbole was one of the speakers at the seminar organised by the Nag Vidarbha Chamber of Commerce, an apex body of trade, industry and its associations from the Vidarbha region.
The session was conducted to create awareness on benefits from FASTag, CIBIL score and PSB loan in 59minutes among business community. The programme was conceptualized and organised by Rajesh K Lakhotia, Convener of Banking Sub-committee of the chamber. CA Dipalee Ladke, Senior Manager (Credit), Bank of Maharashtra and Atul Gedam from FASTag were other keynote speakers. Godbole further explaining the importance of credit score said that in 2006 by an enactment of Union Government credit information bureaus were established and at present there are four bureaus namely CIBIL, Experian, Equifax and Highmark.
Credit bureaus capture information from banks, NBFC’s, housing finance company, state financial company, credit card company and also from co-operative banks and it is mandatory for all these institutions to share data with all the four credit bureaus. He said that while considering loan application bankers also check the credit score of guarantors. Any default by creditor adversely affects the credit score of creditor and also that of the guarantor.
He advised members to ensure that there are no overdue amount in any of their loan account including that of guarantors to improve credit score. He also informed that if any adverse remark is uploaded in bureau’s records due to some error on part of banker then one should get it rectified. Godbole also insisted members to check their credit score twice a year which credit bureau are required to offer free of charge per person. CA Dipalee Ladke deliberating on PSB loan in 59 minutes, popularly know as PSB-59 scheme said that it is a third party service provider company developed jointly by Finance Ministry and SIDBI to bring transparency and to regulate the turnaround time taken by bankers for giving in-principal approval of any loan application.
Explaining the working of PSB-59 portal, she said that interested person has to first create an account on portal by submitting certain information like name, PAN, GSTIN, Aadhar and few other details. The portal works out the loanable amount by capturing and processing the information from website of Income Tax, GST and Credit Bureau and electronically communicates the same to customer and bankers within 59 minutes. Thereafter customer has to submit all documents to concerned bank to process the application. If all necessary documents are attached then normally in seven to eight days sanction letter is issued to customers. She also shared the details of various products Bank of Maharashtra offers to small and marginal traders. Atul Gedam informed the gathering that FASTag is used for e-payment of Toll Tax at toll check posts for hassle free movement of vehicles.
FASTag is a chip fixed on the front of the vehicle which is read by the FASTag readers installed on toll plazas, the toll tax is paid instantly without any delay by debiting the bank account of commuter and bank informs about the transaction to customer by SMS. He informed that presently toll plazas of National Highway and few State Highway are covered and in foreseeable future toll plazas on all highways will be covered. He also said that work on pilot basis was going on and down the line Government was planning to introduce e-payment of paid parking space and fuel (petrol/diesel) purchase though FASTags. At the outset the keynote speakers were introduced by Arjundas Ahuja, Vice President of NVCC and Subhash Godbole, CA Dipalee Ladke, Atul Gedam were felicitated by flower bouquet at the hands of Hemant Gandhi, President – NVCC, Ashwin Mehadia, Faroquie Akbani, Vice President and Ramavtar Totla, Joint Secretary, respectively. The session was conducted by Sanjay K Agrawal, Secretary of the Chamber. Prominently present were Vice President - Arjundas Ahuja, Ashwin Mehadia, Farooquebhai Akbani, Secretary - Sanjay K Agrawal, Joint Secretary - Ramawatar Totla, Past President - Govindlal Sarda, Paraful Doshi, President / Secretary / Trade Representative of member trade associations – Dharamveer Sharma, Shambhu Tekriwal, Tarun Patel and others.