Loans to assist people with bad credit scores : Rupee Times

NEWS & ADVICE : PERSONAL LOAN

Loans to assist people with bad credit scores

Almost every body comes across a financial problem at some point of time or another and personal loans can be a godsend when an emergency bangs on your door. But if you have the misfortune of having a bad credit history then will you be able to avail a personal loan? Just because you have some blemishes on your score card or an uneven income stream shouldn't disqualify you from getting a personal loan.

The introduction of bad credit personal loans resolves this problem and comes as a blessing for borrowers who are refused credit on the basis of a few poor points on their score cards. Bad credit loan is a kind of finance that is especially designed for people with a bad credit history. Such loans have flooded the market over the past few years. However the conditions under which you can contract for such a loan can vary significantly. For instance if your credit rating is horrible or you have filed for bankruptcy, you may find that your options for personal loans are relatively limited.

One of the biggest advantages for these loans types in comparison to secured loans and mortgages is that you are not required to produce any collateral against your loan. But at the same time it is very important to make timely payment of loan amount every month.

The interest rate charged for such a loan is relatively high because lenders use the borrowers' credit score as basis while approving the loan and since the borrower has a bad credit history, interest rate charged is high. It is basically the price that a lender charges for taking a risk. The interest rates for bad credit personal loans are calculated taking into consideration the market interest rate at the time when loan application is made and the particular risk of the personal loan in question. However different lenders have different interest rates and therefore good research will help you to arrive at the best-offered deal according to your profile.

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(Comments Posted : 1)		Post Your Comments

1.	I have sent a mail requesting you to make an analysis of real health of Public Sector banks. I have devised a format for the same and hope you will seek information from PS banks. To start with, you may seek such information from top five or six banks in Jharkhand state, Tamilnadu state, Maharashtra state, Utttar Pradesh and Assam. Five state, five banks and at least five circles will give a rough idea about real health of the bank. You may get quick information from those banks where CBS facility is in full swing. After thorough analysis of the reports thus received you may identify bad officials and ascertain the root cause of continuous rising NPA. It is worthwhile to mention here that inspite of all efforts said to have been taken by you and all banks to improve the quality of assets; NPA in PS banks has been rising year after year. I am happy that RBI governor has ultimately accepted the bitter truth that baffling data given by various agencies are not reliable and hence the conclusions arrived at on the basis of such cooked up data leads to formation of wrong policies and failure in execution of plan .Last month Mr. K Chakraborty Dy Governor of RBI had also admitted that health of Bank assets is not as good as projected by CEOs of various financial institutes. He further admitted how financial data changes after change of chief of the bank and similarly how profit of branch of a bank goes down and Gross NPA of that branch goes up after change of Branch Manager of that branch of the Bank. I am happy because realization of bitter truth can only force the policy makers to introspect into their working style, to assess performance of various banks, to take corrective steps , to punish bad bankers, to frame effective HR policies, to give justice to rejected officials who are not flatterers of their bosses and so on. In one of the report published by RBI it is said that total of Non Performing Assets in Public Sector banks in India is likely to remain maximum 3% of total advances. I fully differ with this conclusion. I had therefore suggested through my previous Emails to RBI to demand report from all PSBs in three formats and now I suggest following four formats which seek information on quality of HR policy and role of bribe in promotion and posting of officers in various scales. It is observed that health of many branches of public sector bank is facing continuous erosion due to continuous rise in amount of Non Performing Assets and due to write off of loan year after year. There may be so many reasons for critical illness of the branch but there is always one reason which is arbitrary promotion and posting forcing officers to flatter to big bosses , spend money on giving gifts to bosses , earn through unfair means and not bother for quality of lending. In report 1 to 3 I have sought information on branches where proportion of NPA is more than 10% of total advances of the branch as against bank average being less than 3 %. Format 4 to 7 deals with details of borrowers and format 8 to 11 which will try to precipitate name of officers due to whose malicious intention, ill motivated actions, bribe led lending the branch has/ had to suffer loss in write off and compromise settlement or spend money in legal actions which could otherwise be avoided. Such reports on proper and honest analysis will definitely give enough indication about culture of top officials of the bank and also expose the quality of HR policies and quality of its execution. If you concur with formats of reports drafted by me, you may quickly redraft the formats if required as per suitability and send the same all Public sector banks for quicker response and quicker corrective action against bad bankers. It is the time that RBI distinguishes good bankers from those bad bankers who always give excuses like bad monsoon or global recession or RBI policy or interest pressure, natural calamities to conceal the ill motivated lending resorted by them and their flatterers. I know you will not like to respond to my request due to various reasons. Still I have decided to seek information through Email before I seek information under Right to Information act covering wider areas of corruption in Public Sector Banks. I am however hopeful that RBI will take my letter in good spirit and take decision to seek such reports from all nationalized banks to ascertain the level of corruption prevalent in PS banks, lobby led promotion and posting, role of recommendation at various level diluting the concern for quality , frequent and repeated violation of promotion and transfer policies leading to several writs in courts, willful postponing of decisions in courts to perpetuate rule of injustice , quantum of money spent in getting favourable justice at the cost of bank staff just to fulfill individual ego of top officials, quality of vigilance system in bank and so on. If there is a will there is a way. If the reports attached to my letter appear to be beneficial and useful RBI must work in this line or devise its own format to get more fruitful and effective result. Thanking you Yours faithfully Danendra dkjain49709@rediffmail.com
danendra jain (Posted: Jul 31, 2011)

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