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How does credit agencies in india work?

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Garima GoelTop Contributor
Content writer and social intern at startupTalky

These are companies that gather and maintain consumer credit information. There are 6 credit agencies registered under SEBI namely CRISIL; CARE; SMERA; ICRA; Fitch India and Brickwork. These agencies determines the nature and integrals of the loan. On the basis of credit rating,the rate of interest is offered to organization. These agencies have no distant past existence they came into existence in 1980s.

There are six credit  assessment offices enlisted under SEBI securities exchange board of india  specifically, CRISIL, ICRA, CARE, SMERA. 

Evaluations gave by these offices decide the nature and integrals of the advance and their position in the market along with their reputation they withold depending upon their data

The rating is given to elements by the credit assessment offices subsequent to information provided by their businesses

Higher the credit  assessment, lower is the pace of risk offered to the association

It rates an account holder's capacity to repay obligation by making convenient head and intrigue installments and the probability of default

 

A rating assessment encourages the exchanging of protections on an optional market.

 

The Three C's of Credit —

 Character

 Capital 

 Capacity

 

For a score  between 300-850, a credit score of 700 or above is generally considered good