Written By Awdhesh Nagar
India consumption is on the rise and mainly driven by youth. Kind of increase we have seen in demand for Auto, Home, Dining, Durables etc is unprecedented. A lot of it is driven by borrowed money. Home loans, Auto Loans, Personal loan, Holiday loan, Gold loan, Education loan etc are on rise.
There is nothing wrong in borrowing for creating asset like Home or education. But reckless borrowing for consumption can invite future trouble. All the borrowings are linked with pan card and a centralised data is available to all financers to see borrowers’ history.
All repayments of borrowers are tracked by CIBIL and a score for borrower is given based on borrowing and repayment record. Any delay, default or excessive borrowing is tracked by system and score is based on that. A scoreof 700 to 900 makes one a good borrower.
A lot of young persons are not particular about loan repayment. Not necessarily that they are wilful defaulter but careless on repayment on due dates or full amount. It effects their future borrowing capacity. If track record and CIBIL score is poor future borrowing may be difficult when needed for more important things.
Some borrowing may be good even if you have funds this also helps built credit score as timely repayment record improves score. Having some credit history is better than no credit history. One should consciously build a good credit history so future borrowings at good rates are easy. One should get money at good rates when needed. Banks are always in hunt for borrowers with good credit score.
About Awdhesh Nagar: Awdhesh Nagar is experienced banking and finance professional. He has good knowledge of economics and business-related matters. He currently runs his own organisation
by the name ‘finance edger’ which advises more than 300 clients on their personal financial planning. Awdhesh is on mission to improve financial literacy. He considers himself responsible for financial wellbeing of his clients. In past he has worked with organisation like Citigroup, GE, Standard
Chartered, SREI at senior level position Awdhesh has also worked for ‘Jaipur Smart City’ project of Government of India’ as Financial Expert. He has handled investment, funding and project finance portfolio in these organisations. He regularly visits education institutes as guest speaker and provides his views on budget and economic events on media. Awdhesh has done his B.Com(H) from Sri Ram College of Commerce and MBA-Finance from University of Delhi.
