Kitchens by Riland

Credit rating is nothing but the grade or the value given to an individual or corporate organization regarding his/her/its ability to repay the debts and dues on time. Credit Rating in India is very much necessary because this nation stands number two in terms of the population and the number of people in debts are quite huge in number. The problem is not the number of people in debts but the real problem is the number of people who are below the median level of income. There are lots of people below the median level income and that is the reason why they resort to loans and in most cases these people are in a position where they will be unable to pay back the dues.

So if you are a moneylender it is very important that you check the credit rating of the individual before sanctioning the money in order to have better safety and security to your money. The credit rating scale in India is very easy to understand. In fact you need not understand the credit rating scale if you are to decide on whether to sanction or not to sanction the loan amount because this information can be acquired directly from any reputed credit rating agencies in India. However the normal credit ratings given in India are given below so that it will give you a better understanding.

The highest safety is in the case of an AAA- rating. AAA- rating is given to those people who do not have any reports of bad credits or irregularity in payment of dues. Actually an AAA- rating is not issued on someone who has not applied for loan earlier because these ratings are normally made on the frequency of their payments and not regarding the financial position. Thus anyone with an AAA- rating can be considered completely safe to deal with and there is maximum security for your money. The next rating is the AA- rating. AA- ratings are given mostly to everyone with a proper and good credit to their name. This is equivalent to the AAA- rating.

The next is the A- rating. This means that the individual at hand is of adequate safety and the moneylender has to be a little cautious while giving the loan amount. The moneylender can be cautious whenever the individual demands for huge loans amounts and simply reject it on grounds of security. The other credit ratings in India are BBB-, BB-, B-, C- and D-. All these are considered unsafe to have monetary dealings.