The goal of credit risk management in banks is to maintain credit risk exposure within proper and acceptable parameters. It is the practice of mitigating losses by understanding the adequacy of a bank’s capital and loan loss reserves at any given time. For this, banks not only need to manage the entire portfolio but also individual credits. How can banks set up a credit risk management system in place? What are the advantages and disadvantages of Credit Risk Management? Let’s find out in below infographic:
Every effective financial plan starts with a sound budget. If you’re trying to pay off dues or save for a dream vacation, a budget is your first step towards turning your financial goals into a reality. Follow these simple steps to put a solid budget plan and credit score into action:
Just as it takes time and determination to climb a mountain, it takes time and determination to conquer a mountain of debt. But if you’re equipped with the right knowledge and tools, the journey to conquering that mountain can be relatively smooth. So, here are some practical ways you can quickly tackle your maxed out cards and take your first real steps toward getting out of debt and maintaining a healthy credit score.
Capital is one of the core things that any business must have in order to smoothly run its operations.But qualifying for a business loan can be hard if you don’t meet business lenders’ strict standards.t is therefore very important for you to know the necessary steps for getting a business loan from a bank so you can improve your chance of getting an approval. Here’s what you need to do to get funding for your business with a business loan.
Calculated with a formula based on variables including payment history, the number of accounts, and the amounts owed, your credit score may affect the interest rate you pay to a lender and even make the difference between a loan being approved or declined. Here are the basics of what scores within a variety of ranges may mean for your borrowing future.
Have you ever lent money to friends and family members? Then you know how difficulty it is to recover the money from people you know personally. How about lending some money to some others in need and making some extra money? If you have the capacity and the will to lend, peer-to-peer (P2P) lending can just be the right place. P2P is an online marketplace where lenders get access to people who need to borrow. Anyone above 18 years of age holding a valid bank account and PAN in India can become a lender. Here’s a step-by-step guide to make your first P2P investment:
Any type of rejection, for example, when applying for a personal loan will leave anyone disappointed. It takes time and effort to prepare the documents that you need to apply for the loan, which means you’ll find it hard to accept the lender’s decision. Moreover, you will spend anxious hours waiting for the approval, meaning if you fail to get an approval, the first thing on your mind will be to ask for an explanation from the lender or bank. Fortunately, in this article, we’re going to look at 8 reasons for why lenders can decline your loan application and how to solve them.
Credit and debit cards may look similar, but their features and uses are quite different? Let’s understand some differences between them and how they affect your credit score.
Every parent dreams of their child graduating from a distinguished university or B-school. Here are key points to consider before you apply for an education loan.If you are considering an education loan to help finance your child’s higher education, here are some things you should keep in mind, before you decide:
Keep these points in mind, and you can easily plan your child’s education without a worry. Timely repayment of the education loan will eventually build a healthy credit score, not only for your child but for you too.
Uh oh…remember when a 650 credit score was deemed sufficient to secure the best rates and terms on credit cards, auto loans, home loans, and so on?Well, not anymore! You can also the join the club of high credit score by simply following the practices listed on our infographic and climb all the way to become an achiever.