Expressing their views at the session organised here by Vidarbha Management Association (VMA) on Sunday, experts in the field of banking said that the CIBIL score and CMR are considered very important in financial institutions. “These two parameters are like ‘Credit Health Card’,” they said.

The experts including Federal Bank, Sadar Branch Head, Priyanka Zadokar; Mohta Wealth’s Netram Mohta and Yes Bank’s AVP, Credit Risk Management, Priyanka Mohta were keynote speakers who spoke on various aspects related to CIBIL and CMR. The way yearly health check-up is recommended for human beings, experts of banking sector advised entrepreneurs and businessmen to check CIBIL and CMR of their enterprise once in a year.

CIBIL and CMR are important while taking loan for personal or company requirement. Any type of negative remarks in it can hamper the loan process. There is a chance of misreporting by the banks even if customers are honest. Due to this, the customer must be aware about all such aspects. Any loan taken should be repaid on time. Ignoring the loan after the completion period is not a great way to close it. NOC and no due certificate must be obtained from the bank to avoid further disputes.

The experts further told the participants that if they have never taken a loan, but have been a guarantor for someone else and for any reason the borrower has not fully paid it, it also affects their CIBIL rating. “It is necessary to think carefully before becoming a guarantor for anyone. Due care should also be taken while handing over documents to any financial institution. Taking a number of similar types of loans should be avoided as it has adverse effect on CIBIL. On the contrary, taking different types of loans and repaying them regularly is beneficial. Using a credit card to its full limit is also a mistake. Thus, the experts advised the participants to use the credit card more carefully and as per

their needs.