Loan Ajkal

07/24/2025

Bankers/Businessman will relate with this WORD.

What is EBITDA?

EBITDA provides a measure of a business’s core profitability after stripping out factors that aren’t in the company’s control or that may distort earnings, such as:

Interest
Interest can vary depending on the company’s credit history, financing structure and location.

Taxes
Taxes can vary depending on where the company is located.

Amortization and depreciation
Amortization refers to tangible assets such as buildings and equipment, as well as intangible assets such as software and patents. All of these assets are amortized over their useful life. Depreciation reduces the value of the assets due to factors external to the business, such as inflation and economic conditions.

Does EBITDA mean profit?

EBITDA is not equivalent to profit. Profit is the amount of money a company earns after all expenses have been deducted from its revenue.

EBITDA is a measure of a company’s operating performance. It does not account for non-operating expenses such as interest on debt, taxes and other costs.

How is EBITDA calculated?

EBITDA is calculated with the following formula, using elements found in the income statement.

EBITDA formula

Net profit + Interest + Taxes + Depreciation and Amortization

07/17/2025

Mortgage Underwriting

Mortgage underwriting is the process a lender uses to assess the risk of lending money to a borrower for a home purchase. It involves evaluating the borrower's financial information, credit history, and the property's value to determine if they can repay the loan. This assessment helps the lender decide whether to approve, deny, or conditionally approve the mortgage application.

Key aspects of mortgage underwriting:

Risk Assessment:
Underwriting is fundamentally a risk assessment process for lenders, ensuring they minimize the potential for loan defaults.

Financial Evaluation:
Underwriters examine various aspects of a borrower's financial profile, including:
Credit History: Credit score and credit report to assess creditworthiness.

Income and Employment: Verifying income stability and employment history to gauge repayment ability.

Assets and Debt: Assessing assets to ensure sufficient funds for down payment and other expenses, and evaluating existing debt levels.
Property Valuation: Determining the property's market value to ensure it aligns with the loan amount.

The 5 C's of Underwriting:
These are key criteria lenders use:

Capacity: The borrower's ability to repay the loan based on income and expenses.

Capital: The borrower's financial resources, including down payment and savings.

Collateral: The value of the property being mortgaged.

Credit: The borrower's credit history and credit score.

Character: The borrower's overall reliability and trustworthiness, often based on credit history and other factors.

Decision Making:
Based on the evaluation, the underwriter makes a decision to approve, deny, or conditionally approve the loan.

Timeframe:
Underwriting can take anywhere from a few days to several weeks, depending on the complexity of the application and other factors.

In essence, mortgage underwriting is a crucial step in the home-buying process that ensures both the lender and borrower are protected by making informed lending decisions.

07/15/2025

One of my friend raised issue about cibil inaccurate iformation.

Here is the solution

Rectification process for Misleading loan details in cibil.

1. Online Dispute Resolution:
Log in: www.Cibil.com
Access the official CIBIL website and log in to your myCIBIL account.

2.Navigate to Credit Reports:
Go to the "Credit Reports" section and find the specific report or section containing the error.
Initiate Dispute:

3.Click on "Dispute an Item" or "Raise a Dispute" to begin the dispute process.

4.Fill the Dispute Form:
Accurately complete the online dispute form, providing details about the incorrect information and selecting the relevant section for correction.

5.Submit the Dispute:
After filling in all the necessary details, submit the form to officially raise the dispute.
Track the Dispute:
You will receive a dispute ID, which you can use to track the progress of your dispute resolution.

Offline Dispute Resolution:

Prepare a Written Complaint:
Write a letter explaining the errors in your CIBIL report and include supporting documents.
Send to CIBIL:

Send the letter and documents to the following address: TransUnion CIBIL Limited, One Indiabulls Centre, Tower 2A, 19th Floor, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400 013.

Dispute Resolution Process:

1.CIBIL Investigation: CIBIL will investigate the dispute by contacting the relevant lender and verifying the information.
2.Lender's Response: The lender may accept or reject the dispute based on their records.
Report Update: If the dispute is accepted, CIBIL will update the report with the corrected information.
3.Dispute Status: You can track the status of your dispute through the dispute ID provided.
Timeline: The dispute resolution process can take up to 30 days.

Budgeting and planning, CIBIL Score management, Maintain financial discipline, Choosing the right product, terms and conditions and emergency funds.

07/03/2025

*FOIR* stands for *Fixed Obligation to Income Ratio*.

It is a key lending parameter used by banks and NBFCs to assess a borrower's *loan repayment capacity*.

*FOIR Formula*:
*FOIR = (Total Monthly Obligations ÷ Gross Monthly Income) × 100*

*Monthly Obligations* include:
- Existing EMIs (home loan, personal loan, etc.)
- Credit card dues (if paid in EMIs)
- Proposed EMI for the new loan

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*Example*:
- Gross Monthly Income: ₹50,000
- Existing EMIs: ₹10,000
- Proposed EMI: ₹7,000
- FOIR = (10,000 + 7,000) / 50,000 × 100 = *34%*

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*Ideal FOIR:*
- Usually, lenders prefer *FOIR between 40%–60%*
- Higher FOIR = higher repayment burden = lower loan eligibility

07/03/2025

Knowledge Bytes: Affordable Loans

Bankers//Credit Managers// Risk Manager

Verify Business ownership and stability

1.Check sale purchase bills.

2.Check neibour feedback.

3.Verifiy through his vendors.

4.Check his gpay/Phone pay account transaction.

5.Check name board and number mentioned.

6.Check his knowledge about his products.

7.Check his google map on his phone on request basis and there is Timeline tab in which his daily visit places available by which his ownership as well as stability both could be verified.

8.Check shop ebill paid by status as most people pay online.

9.Check Shop ownership docs or If rented premisies check Rent paid method.

07/02/2025

DPD in CIBIL Report – Explained

DPD stands for Days Past Due. It shows how many days late you were in paying your EMIs or credit card dues each month, for up to the past 36 months on every credit account.

➡️Where is DPD Found?

It's shown under each loan or credit card account** in your CIBIL Credit Report, like this:

Month Jan Feb Mar Apr May Jun ...

DPD 000 000 030 000 000 ### ...

➡️What Do the DPD Codes Mean?

Code Meaning

000 Paid on time (no delay)
### No data reported by lender for that month
030 Payment was 30 days late
060 Payment was 60 days late
090 Payment was 90 days late
120+ More than 120 days late (severe default)
STD Standard account (performing normally)
SUB Substandard account (non-performing)
DBT Doubtful account (defaulted long-term)
LSS Loss asset (likely uncollectable.

➡️Why DPD is Important:

Any DPD > 000 affects your CIBIL score negatively

Frequent late payments → bad credit behavior

DPDs of 60, 90, or more → high risk, possible loan rejection

➡️ Example Interpretation:

If a loan shows:

DPD: 000 000 030 000 000 000 060 000 000 000 ...

It means:

You missed payment by 30 days in March

Again missed by 60 days in July

Other months: paid on time

This can reduce your credit score, especially if recent.

08/26/2021

07/30/2021

Aware of Hidden charges on mortgage loans in every companies.

06/19/2021

As my father used to say:
"There are two sure ways to lose a friend, One is to borrow, the other to lend.

06/11/2021

Dreams comes true

06/11/2021

DREAM COMES TRUE