Now There Is A Twist In The Tale Article

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Now There Is A Twist In The Tale

Bad credit personal loans are the latest innovations in the Indian loan market. Now, Indian bad credit borrowers can avail these loans against property.

Author: Addi Vardhaman

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Availing a loan is the most difficult task for people with bad credit score. Actually it is an adverse situation to be in, which will affect loan approval by the lenders. This section of borrowers is treated as 'most vulnerable' by the lenders. As credit checks done before the loan approval go against them, lenders find it hard to trust such borrowers.

How about a loan plan that does not require a credit check and can help the borrower in getting the required money. There are certain loan plans available in the UK and US financial markets that allow individuals with bad credit ratings to have money for variety of needs. These loans can be made available with or without pledging any residential property as security.

A bad credit personal loan is available for all types of borrowers and the purpose of borrowing can be any thing that is correct according to the law of the land. But it is a fact that finding a no credit check loan is not that easy as the lenders claim. Generally,these loans come with high interest rates and many times require a co-signer. These loans also usually come with a short payback tenure. Lenders are ready to take the risk with the assumption of getting regular repayment of the approved loan.

But does Indian financial market has personal loan provision for such vulnerable borrowers?

Unfortunately the answer is no. Typically lenders in Indian loan market treat it as a very risky affair to give personal loans to borrowers with bad credit status without a credit check. Out of which State Bank of India, and HDFC Bank are very clear about their stand on the matter of offering loan plans to the bad credit borrowers. These lenders do not consider granting loans to borrowers having a suspicious credit track record. From a lender's point of view, it may be a cautious step as they find it hard to trust such borrowers who have lost their creditworthiness.

It is correctly said that better late than never. Now,the private sector banks like HDFC and Citibank have started lending to Indian bad credit borrowers. But, the primary condition of lending is security pledging. Now HDFC is offering up to 65% of the value of the pledged security as loan to the bad credit borrower. As, the competition in the Indian banking system is growing, it can be expected that loan availability to the poor credit borrowers will not be a nightmare.

About Author

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Paisawaisa as a finance specialist.

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