CREDIT SCORING, RETAIL LIABILITY PRODUCT
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is credit scoring in the context of retail banking?
Credit scoring is a statistical method used by banks to assess the creditworthiness of a borrower by assigning a numerical score based on factors like repayment history, income, and outstanding liabilities.
What is the minimum CIBIL score typically required for approval of a home loan?
A score of 750 or above is generally required.
Which bureau is the primary credit information company in India that provides credit scores?
CIBIL (Credit Information Bureau India Limited) is the primary credit bureau in India; other licensed bureaus include Equifax, Experian, and CRIF High Mark.
How many Credit Information Companies are licensed by RBI in India?
Four CICs: CIBIL, Experian, Equifax, and CRIF High Mark.
What is the CIBIL score range and what score is generally considered creditworthy?
The CIBIL score ranges from 300 to 900; a score of 750 and above is generally considered good and increases the likelihood of loan approval at favorable interest rates.
What is the full form of CIBIL?
Credit Information Bureau (India) Limited.
What does a higher credit score indicate about a borrower?
A higher credit score indicates lower credit risk, meaning the borrower has a strong repayment history and is more likely to honor future debt obligations on time.
Which act governs Credit Information Companies in India?
The Credit Information Companies (Regulation) Act, 2005.
Video classes for this chapter
More chapters in Module B - Retail Products and Recovery
Master the full RBWM syllabus
Every chapter of Retail Banking and Wealth Management — videos, tests, notes and one-liner decks in one place.