Tag: Experian India

Business

Top 5 mistakes to avoid when applying for a home loan

Sep 28, 2021 by Rekha Nair 0 Comments #Experian India, #Managing Director, #Neeraj Dhawan

-Neeraj Dhawan, Managing Director, Experian India

Buying a home is an emotional decision, a place where you create memories that stay with you lifelong. But do we plan enough while borrowing a home loan? Are we sure that the home loan scheme is the best in industry?

Borrowing a home loan requires analysis and planning, as it is a long-term and expensive commitment. Getting a loan without proper research may damage your financial well-being. While applying for a home loan people need to be very watchful so that they don’t end up with an incorrect scheme or incorrect lender.

Following are the common mistakes while applying for a home loan:
1. No self-assessment: The first mandatory step before applying for any loan is to have a healthy credit score. A credit bureau like Experian provides you free and unlimited credit reports, which is quite easy and convenient to download. A credit score above 700 may lead you to a favourable scheme. This will also give you the power to apply for a loan through the best banks. The lenders will evaluate creditworthiness; a poor credit / repayment history will drop the score and the borrower won’t be eligible for good home loan schemes. In India, only 7% of the home loans sanctioned in the industry are given to customers with Experian Score 300-700.

2. Lack of proper research: Home loans have become quite commonplace and are easily available. With the increasing demand, multiple financial institutions provide customised schemes meeting one’s needs. Hence, it is very important to do proper research before applying for a loan from a particular institution. Home buyers needs to double-check their requirement, plan their finances, check terms and conditions, identify hidden charges, processing fees and flexible repayment options to name a few and accordingly, select the appropriate bank and scheme. Nowadays, many websites allow you to compare the home loan products offered by different banks. Lack of research may lead you to paying unnecessary charges or higher EMI.

3. Shorter the tenure, higher the risk: As far as possible, it is advisable to not opt for a shorter tenure home loan as shorter the tenure, smaller the loan amount. This also leads to a higher risk of default in payment of EMI considering the high EMI amount. The eligible amount would depend on various factors like age, credit history, and repayment capacity. Also, you need a high credit score and good repayment history to avail higher amount and get favourable terms and conditions. A longer tenure will ease your EMI and meet your financial objectives.

4. Repayment capacity: The biggest mistake which people generally do is to not include their monthly expenses while calculating their repayment capacity. The bank generally looks after your liabilities while granting a loan. If your monthly expenses are high and you take a home loan with a higher EMI amount, this may lead to a huge financial crisis. Your EMI outflow generally should not exceed 30-40 percent of your income. One should not depend upon future events such as an increment in your income and instead consider your present financial situation before opting for a bigger loan. Looking at the current situation, it is always advisable to do a thorough study of your expenses before applying for a loan or selecting an expensive property.

5. Not taking any insurance cover: Home loan borrowers should take proper insurance cover to protect their families from financial distress. In case of any unforeseen contingency, the home loan insurance can help the family to clear off the dues. Multiple insurance products cover home loan, like taking a life cover which includes your liabilities. Not securing your liabilities is a risk which most borrowers do not recognize. It is highly recommended to take cover to protect your family members from any financial burden

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46% of businesses in India have seen an increase in fraud during the pandemic

May 21, 2021 by Rekha Nair 0 Comments #Decision Analytics, #Experian Asia Pacific, #Experian India, #Managing Director, #Neeraj Dhawan, #Steve Griffiths

Mumbai: With accelerated digitisation, frauds and online financial attacks in India are growing exponentially. Data from Experian’s Global Insights Report (January/February 2021), shows that 46% of businesses in India have seen an increase in fraud.

With the advent of e-commerce, digital fraud has been a huge challenge for businesses. Despite the growing risk of fraud, 40% of Indian businesses indicate that they are placing more emphasis on revenue generation rather thanfraud detection, which can lead to increase in losses and a decline in customer confidence. Considering that 56% of consumers in India cite online privacy as a significant concern, it is imperative for businesses to take robust actions to safeguard themselves and their customers against potential digital risks.

While 90% of businesses in India say they have implemented strategies related to recognising their customers across their various platforms – the highest among all regions surveyed in the global report–only 18% of organisations surveyed in India are confident in preventing new types of fraud.

To counter the rising threat of fraud, Experian – the world’s leading global information services company – has upgraded and enhanced one of its flagship products,CrossCore.The enhanced version of CrossCorecuts complexity, increases efficiency and helps businesses to quickly respond to today’s emerging fraud threats.

Experian’s CrossCore is the first identity and fraud platform that empowers businesses to connect, access, and orchestrate decisions across multiple solutions seamlessly. This new version features a cloud architecture, progressive risk assessments, faster response times, self-service workflows, and various reporting dashboards. These features allow businesses to manage checks required for every application and transaction, analyse key performance indicators in near real-time, and detectfraud quickly – without impacting the customer experience.

With CrossCore, businesses can look forward to the following benefits:

• All-in-one, faster, frictionless solution – a one-point solution for identity and document verification, video KYC, fraud detection and more for faster business decisions.

• Advanced technologies for identity verificationand fraud prevention – identifying customers through advanced machine learning, artificial intelligence, device intelligence, behavioural biometrics and Experian’s fraud consortium, Hunter.

• Faster decisions for superior customer experience – making real-time fraud prevention decisions and providing superior customer experience.

• Improved business metrics – decreasing manual review costs and fraud losses.

Neeraj Dhawan, Managing Director, Experian India,said: “The pandemic has resulted in a behavioural shift in adopting digital mediums as the primary operational channel.This shift has intensified concerns over cyber threats and new kinds of frauds.Experian’s enhanced CrossCore presents an opportunity for businesses to put consumers at the heart of the relationship.CrossCore connects disparate fraud systems with an open platform, delivering both visibility and agility. With the latestversion of CrossCore, Experian empowers businesses by consolidating numerous fraud risk signals into a single, holistic assessment, enabling them to improve operational processes, stay ahead of fraudsters, and protect their customers.”

Steve Griffiths, Managing Director, Decision Analytics, Experian Asia Pacific,said: “India has now become one of the largest and fastest-growing technology markets in this world. Businesses need to build a digital infrastructure that is agile and adaptive to these changing dynamics. While 90% of businesses in India say they have implemented strategies related to recognising their customers across their various platforms, without a focus on fraud prevention, they remain prone to losses in the long-term. Businesses who put all their money into the digital experience at the expense of fraud prevention will be targeted by fraudsters, who have sophisticated ways of identifying weaker online platforms and targeting them. The enhanced version of CrossCore provides businesses a strong mechanism to combat evolving fraud threats in real-time.”

The new version of CrossCorehas enhanced capabilities to deal with Account Takeover Fraud, as well as Account Opening frauds, along with supporting fraud data sharing for a range of different fraud indicators.