In India, Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the country’s economic growth, generating employment and contributing significantly to the GDP. However, accessing credit has often been a significant challenge for such enterprises, especially for startups and small-scale businesses. This is where responsible lending plays a transformative role. At LendingKart, responsible lending […]
If you are an entrepreneur of a micro, small or medium enterprise (MSME), you must understand the importance of credit scores. Lenders use your business credit score to determine whether you are eligible for a credit facility. A high score instils confidence in the lender and makes them more inclined to provide funding. With
If you are an entrepreneur planning to expand operations, knowing how to build a business credit history is essential. Lending institutions, in particular, focus on your business credit score to determine your repayment ability. Even suppliers and potential investors may sometimes look at your credit score to determine your trustworthiness. If you are a
How Business Loan EMI Bounce Affects the Creditworthiness of Businesses
When an MSME business owner borrows funds for day-to-day business operations or expansion, they are expected to repay the amount in monthly installments spread over the agreed-upon loan tenure. However, sometimes MSMEs may miss EMI payments due to insufficient balance in their accounts. When an EMI bounce occurs, it brings some serious repercussions for
CIBIL Score Definition The CIBIL score, often synonymous with the credit score, serves as a numerical representation, typically ranging from 300 to 900, reflecting an individual’s creditworthiness. It operates as a financial report card, summarizing past borrowing behavior and the ability to meet debt obligations. When lenders assess the risk of lending money, your
Credit cards have completely transformed the way Indians make payments. However, many remain unaware of how their credit card bill payment habits affect their credit scores. Quite a few credit card holders, even today, simply resort to just paying the minimum payment to avoid penalties. While this might be okay during emergencies, continuing this
The spurt in technological progress over the decades has resulted in a revolutionary transformation in our governance mechanisms. The most visible effect of this is seen in the domain of citizen empowerment. The use of technological means has brought a paradigm shift in the way citizens use services meted out to them by the
