Loan FAQ Loans & Advances

How Does accepting OTS effect on Credit History ?

One Time Settlement Scheme , OTS effect on Credit History of an Individual future credit history : Just as all information about credit availed (amount availed, payments, defaults etc) is reported to Credit Information Companies (CICs), the fact that the borrower has closed a loan account after accepting an OTS is also reported to CICs. […]

Loan FAQ Loans & Advances

What is Collateral Security ?

Collateral Security – This is generally defined as additional security borrower offers a lender to secure a loan. Banks may take some additional securities which are called collateral securities. Collateral could be in the form of guarantee from one or two persons, assignment of life insurance policies, lien over shares, and units or other securities or mortgage […]

Loan FAQ Loans & Advances

What is Interest Rate Reset Clause ?

Interest Rate Reset Clause – An ‘interest rate re-set’ clause allows a bank to review and reset rates at the end of a specified period of time based on interest rates prevailing at that time. Read – Whether Provident Fund (PF) Taxable ?