Business
A Good CIBIL™ Score Is The Key To Get Quick Loan Approvals
Loans get a bad rep among borrowers. They believe the process is complicated, confusing and time-consuming. But, it needn’t always be so! Do you want to know the secret to getting your loan approved quickly?
The answer lies in your CIBIL™ score. It’s the magical key that unlocks loan approvals and simplifies the entire process. Continue reading to find out what is the CIBIL™ score and how it matters in getting your loan approved quickly.
What is a CIBIL™ score?
Your CIBIL™ score plays a crucial role in your loan process. It’s the key factor that makes or breaks the lender’s trust on the borrower. TransUnion CIBIL™ is one of the authorised credit agencies in India that provides the credit scores of individuals and businesses. The CIBIL™ score is generated based on the financial data collected from banks, NBFCs and other lending institutions.
The CIBIL™ score is a three-digit number assigned to individuals and businesses by TransUnion CIBIL™. The score is based on your credit history and is used by lenders to assess the creditworthiness of potential borrowers.
The score gives an idea to lenders regarding the possibility of defaults and the risk factor in lending to a particular borrower. Lenders make various decisions based on the credit score like:
- Whether to sanction the loan or not
- The interest rate to offer the borrower
- Loan amount to sanction
- And other loan terms and conditions
What are the benefits of having a good CIBIL™ score for loans?
A good CIBIL™ score offers various benefits like:
- Quick and fast loan approvals
- Easy access to loans, credit cards and other credit products
- Better loan terms
- More negotiating power
- Higher loan amounts
- Premium credit cards
On the other hand, a low CIBIL™ score makes it challenging to secure the right loans at times of need. For greater insight into CIBIL™ score and its role in loan approvals, continue reading.
What is a good CIBIL™ score?
A CIBIL™ score between 700 and 900 is considered good. In addition, a good CIBIL™ score offers various benefits to the borrower like:
- Quick loan approvals
- Low-interest rate
- Higher loan amounts
- Longer repayment tenure
- Multiple loan offers
- Better loan choices
- Better negotiating power
Why is a good CIBIL™ score necessary for loans?
- Irrespective of the type of loan – personal loan, home loan, car loan, bike loan or any other loan – having a good CIBIL™ score (above 700) increases the chances of getting the loan approved.
- Additionally, having a high CIBIL™ score makes the loan process quicker, faster and easier.
- A good CIBIL™ score also fetches you high loan amounts.
- In the case of home loans, borrowers can get up to 80% of the total cost of the property when they have a credit score ranging between 700 and 900.
- Similarly, a good credit score can improve your personal loan approval and help you get a high loan amount.
- While car loans can be secured even without a high credit score, having a high score helps you secure the best loan interest rates and speed up the loan approval process.
How can borrowers build a good CIBIL™ score?
Here are a few easy tips to improve your credit score:
- Avoid delayed or missing credit payments – this includes loan EMIs, credit card bills, etc.
- Use credit in moderation – avoid maxing out on your credit card limit; stay within 10% to 30% of the available limit;
- Monitor and track your credit score and credit history, at least once every 3 to 6 months;
- Maintain a balanced credit mix – try to build a credit portfolio that is a balanced mix of both secured and unsecured credit;
- Give a gap of at least six months between each subsequent loan application;
How to check my CIBIL™ score?
There are multiple ways to check your CIBIL™ score online. Let’s explore a few ways to get your CIBIL™ score.
Method #1: Via the CIBIL™ website
- Login to the CIBIL™ website.
- Check for the tab/button, “Get your Free Credit Score & Report.”
- To check your score, you have to create an account on the site.
- Furnish key details like name, email ID, mobile number, PAN number, etc.
- Complete the verification using the OTP received on your mobile/email.
- Once you complete the verification process, you can check your latest CIBIL™ score.
*Note that CIBIL™ offers a free credit score check only once a year. Beyond that, you have to pay to get your score.
Method #2: Using CreditMantri, India’s No.1 credit resolution services provider
You can also check your credit score for free by using other online portals like CreditMantri. Here are the steps to get your credit score.
- Visit the CreditMantri website.
- Click on “Free Credit Score.” Provide a few key details like name, email id, mobile number and PAN.
- Your latest credit score will be provided along with other essential details.
Factors Affecting Your CIBIL™ Score
Now that you know the importance of the CIBIL ™ score in determining the chances of loan approval, let’s examine the various factors that contribute to your score.
- Payment History – On-time credit card bill payments, loan EMIs, utility payments, etc. Help you maintain a good credit history and boost your credit score.
- Credit Mix – Having a balance between secured and unsecured debts ensures a positive impact on your credit score.
- Credit Utilisation – Maintaining a low credit utilisation ratio is an excellent way to boost and improve your score.
- Frequency of loan enquiries – Multiple loan/credit card applications within a short span is a red flag for lenders and can damage your credit score.
Three Mistakes to Avoid Hurting your CIBIL™ Score
#Avoid Late Payments
Even a single credit card bill or loan EMI paid after the due date can hurt your credit score. Very often, we forget to make the payment on time or use the money for other expenses. We believe that by paying the late fee, we can get back on track.
Unfortunately, missed credit payments leave a long-lasting impact on your credit score. Delayed payments are noted on your credit report and show lenders that you’re irresponsible in handling loan/credit card bill payments. This can impact future loan eligibilities and delay the loan process significantly.
#Avoid High Credit Utilisation
When you apply for a credit card, you are provided with a credit limit (the maximum amount you can use on the card) based on your income, existing debts and other factors. While you can spend up to 100% of the assigned credit limit, it’s highly recommended that you keep it low.
To maintain a good credit score, try to stay within 10% to 30% of the assigned credit limit. This shows prospective lenders that you’re not overly reliant on credit and can manage your finances responsibly by staying within your means.
#Avoid Multiple Loan/Credit Card Applications within a Short Span
Frequent loan or credit card applications shows that you’re hungry for credit and causes lenders to classify you as a risky borrower. Each time you apply for a loan/credit card, it’s noted as a hard inquiry on your credit report. Multiple hard inquiries within a short span can cause your score to drop.
Your CIBIL™ Score Matters a Lot in Speeding up Loan Approvals
The CIBIL™ is one of the biggest factors that determine your loan outcome. Having a high CIBIL™ improves your chances of loan sanction, as lenders prefer creditworthy borrowers with good CIBIL™ scores and an excellent credit report.
Depending on the loan type and lender, a score of 750+ gets you the best deals – speedy loan approvals, low-interest rates, higher loan amounts and a longer tenure. Anything lower than 700 is considered a poor score and may delay the loan approval or even cause your loan applications to be rejected. 90% of the loans approved are offered to borrowers with a CIBIL™ score of 750 or higher.
So, it’s highly recommended that you maintain an excellent score to improve your loan approval chances and simplify the loan process. Start by checking your credit score for free and take suitable measures to improve it if needed.
Business
Enhancing Team Productivity through Effective Feedback
In today’s competitive work environment, enhancing team productivity is vital for any organization’s success. Effective feedback, a cornerstone of performance management, can significantly improve productivity by providing employees with clear guidance, motivation, and support. It fosters an environment where team members feel valued, understand their contributions, and know how to align with team goals. In this article, we explore the impact of effective feedback on productivity, strategies to deliver it well, and ways to embed it into performance management systems.
How Feedback Improves Team Productivity
Feedback helps team members understand their strengths, identify improvement areas, and connect their work with team objectives. This clarity boosts productivity by encouraging employees to focus on tasks that truly matter and improving their skills along the way.
- Improving Clarity and Focus: When expectations are clear, employees have a better understanding of how to prioritize their tasks. Feedback clarifies these expectations, helping team members see the bigger picture and work toward common goals. This clarity not only improves individual performance but also aligns the entire team for better results.
- Building Confidence and Reducing Fear of Failure: Constructive feedback reinforces strengths and helps employees feel more confident in their roles. By framing feedback in a way that promotes growth, managers create a safe space for employees to take initiatives, make improvements, and focus on skill development. When employees feel empowered and unafraid of making mistakes, they are more likely to contribute to the team’s productivity.
- Increasing Accountability and Engagement: Regular feedback establishes a culture of accountability. Employees understand that their performance is observed and appreciated, motivating them to maintain or improve their efforts. It also increases engagement, as team members feel their work is valued and that their growth matters to the organization.
Characteristics of Effective Feedback
For feedback to truly enhance productivity, it must be structured and delivered effectively. Here are some qualities that make feedback productive:
- Specific and Actionable: Feedback should be clear, detailed, and actionable. General feedback like “good job” or “needs improvement” lacks guidance. Instead, feedback should include specific examples and suggestions on what to keep doing or change. For instance, saying, “Your presentation was engaging and well-organized, especially the visuals,” provides clear insight on strengths.
- Timely and Regular: Feedback should be given promptly, soon after the event or behavior it addresses. This ensures relevance and allows employees to make immediate improvements. Regular feedback sessions, whether through one-on-ones or check-ins, keep team members aligned and focused.
- Balanced and Constructive: Effective feedback includes a balance of positive reinforcement and constructive criticism. Acknowledging achievements and areas of strength builds confidence, while constructive criticism supports improvement without discouraging employees.
- Two-Way Communication: Feedback should be a dialogue, not a monologue. Encouraging employees to share their thoughts and ask questions helps create mutual understanding. When employees feel comfortable sharing their perspective, they are more open to feedback, fostering a culture of trust and respect.
Implementing Feedback in Performance Management
Integrating feedback into a performance management system provides structure and consistency, making it a continuous part of the team culture. Here’s how to embed feedback effectively within performance management:
- Set Clear Expectations: Clear expectations lay the groundwork for productive feedback. When team members know what is expected of them, feedback can be more targeted. Regular performance reviews, along with informal check-ins, provide an opportunity to reinforce these expectations and address any gaps.
- Create Continuous Feedback Loops: Annual reviews alone aren’t enough for modern work dynamics. Establishing continuous feedback loops—where feedback is given regularly—ensures that employees can adjust their actions promptly. This keeps the team on track toward their goals, fostering a culture of continuous improvement.
- Incorporate Peer-to-Peer Feedback: Feedback from peers can be just as valuable as feedback from managers. Peer feedback helps team members gain a well-rounded perspective, build camaraderie, and improve collaboration. It also distributes the responsibility of feedback, creating a supportive and communicative team culture that boosts overall productivity.
- Focus on Developmental Feedback: Feedback should not only address current performance but also encourage skill development. By focusing on growth areas that align with the employee’s career goals, managers can inspire improvement and commitment. Developmental feedback within performance management emphasizes growth, building a team that’s continually improving in skills that benefit the organization.
- Leverage Digital Tools for Real-Time Feedback: Performance management tools can help streamline the feedback process. Platforms that enable real-time feedback make it easier for managers and employees to track progress, set reminders for regular feedback, and maintain records of growth. With digital tools, feedback becomes an efficient and integral part of everyday team dynamics.
Conclusion
Effective feedback is a key driver of team productivity. By providing clarity, building confidence, and encouraging accountability, feedback empowers employees to perform at their best. When embedded within a performance management system, feedback transforms from occasional advice to a continuous improvement tool, fostering a positive, high-performance culture.
Organizations that prioritize effective feedback in their performance management strategies will see a more engaged, motivated, and productive workforce. In the end, when team members feel guided, valued, and aligned with organizational goals, they are more likely to go above and beyond, contributing to the success of the team and the organization as a whole.
Business
Home Office Haven: 6 Tips for Putting Together Your Perfect Home Office
Working from home has become increasingly common, and having a well-designed home office can make a big difference in your productivity and job satisfaction. Whether you’re converting a spare room or carving out a corner of your living space, here are seven tips to help you create the perfect home office.
1. Choose the Right Location
The first step in setting up your home office is finding the right spot. Look for a quiet area with minimal distractions and plenty of natural light to keep the good vibes going. Consider using a spare bedroom, a section of your living room, or even a converted closet if space is tight.
If you’re in the process of buying a new home, take the time to explore display homes to get ideas for potential office spaces. This can help you envision how different layouts might work for your needs.
2. Invest in a Good Chair and Desk
Since you’ll be spending a lot of time in your office, it’s crucial to have comfortable, ergonomic furniture. Choose a chair that supports your back and allows you to keep your feet flat on the floor.
Don’t be afraid to try out different options before buying. A standing desk or a treadmill desk might be worth considering if you want to reduce the amount of time you spend sitting.
3. Organize Your Space
A clutter-free workspace can help you focus and be more productive. Use shelves, drawers, and storage containers to keep your supplies organized and easily accessible.
Consider using a filing cabinet for important documents and a cord management system to keep cables tidy. Make sure to label everything clearly so you can find what you need quickly. Remember, a place for everything and everything in its place.
4. Light It Right
Good lighting is essential to reduce eye strain and maintain your energy levels throughout the day. Bring in natural light whenever possible. For darker days or evening work, use a combination of overhead lighting and task lighting, such as a desk lamp.
Also, avoid placing your computer screen directly in front of or behind a window to prevent glare. If you can’t avoid this, consider using curtains or blinds to control the light.
5. Create a Background for Video Calls
With video calls becoming a regular part of many jobs, it’s important to have a professional-looking background. Choose a wall in your office to serve as your video call backdrop.
Keep it simple and uncluttered, but consider adding a few tasteful decorations or a bookshelf to make it visually interesting. If you don’t have a suitable wall, you can use a room divider or hang a curtain to create a makeshift background.
6. Think About Your Tech Needs
Finally, make sure your office is set up to meet your technology needs. This might include:
- A second monitor if you often work with multiple windows open
- A good quality webcam and microphone for video calls
- A printer, if you frequently need hard copies of documents
Don’t forget about power needs – make sure you have enough outlets for all your devices, and consider using a surge protector to safeguard your equipment.
Create a Space That Works for You
Creating the perfect home office takes some thought and effort, but it’s worth it in the long run. A well-designed workspace can boost your productivity, reduce stress, and make working from home a more enjoyable experience.
Remember, your office should be tailored to your specific needs and work style, so feel free to adjust these tips to suit your situation.
Business
The Perfect Domain: What to Consider When Choosing Yours
The domain name may seem insignificant to business owners new to the online game. After all, it’s just a sequence of characters that contains your business name, right? How important could it be? The customers will figure it out in the end…
Well, you may be surprised to learn that it actually plays an integral role in your marketing strategy. For many customers, your web address is the first impression it has with your business, and therefore it must be easily-memorable and searchable.
Otherwise, they may give up on visiting your website before they’ve even really considered your awesome product offering!
With this in mind, here are some important considerations when choosing your web address:
- It should be simple
When it comes to domain name registration, nothing is more off-putting to a customer than a convoluted web address. They should be able to hear your web address from a friend or see it on a flyer before immediately searching it on their smartphone or, at the minimum, be able to remember it upon returning home.
Let’s say you run a technology repairs store called “Easy Technology Repairs”. Sure, you could include all of this in your web address and make it read something like “www.easytechnologyrepairs.com.au”. But it’s simply far too long and the customer will likely have a hard time remembering all that when it comes time to choose your service to fix their television.
Instead, you could choose something as simple as “www.easytech.com.au” and the customers will have little trouble remembering it when they jump on the train or get home to their laptops. A simple and easily-memorable web address makes it much easier for the customer to remember and this will help drive conversions.
- It should typically only contain letters
With the exception being if your actual business name actually has numbers in it. Let’s say you run a travelling tailor and dry cleaning company called “Tailors To You”. Sure, the web address “www.tailors2you.com.au” may look sleek, but it can also confuse the customer who has already seen your name spelled “Tailors To You”.
Therefore, when they go to type the web address “www.tailorstoyou.com.au” and find that it doesn’t come up with your website they will be immediately deterred and look for your product through a competitor. Therefore, you should only include numbers (and special characters for that matter) if they are actually included in your business name!
- It should pertain to your business
There is nothing wrong with including a special keyword in your web address if it actually pertains to your business. For example, you run a pool building company called “Sweet Summer” but don’t actually have the word “pools” in the business title.
One of the best things you can do here is include the keyword “pools” in your web address to make a web address like “www.sweetsummerpools.com” to ensure that both your clients and search engines like Google know what kind of content can be found on your website.
This will not only make it easier for prospects to remember your web address, but it also works well for Google, who absolutely loves knowing what kind of content can be found through a business’s web address. The search engine will have little trouble categorising your website and will therefore be likely to rank it higher in the search engine results pages!
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