Exactly why is it difficult for First Time Borrowers to obtain that loan?

Exactly why is it difficult for First Time Borrowers to obtain that loan?

In a 2014 report, RBI has made suggestions of to not reject loans to brand brand new or first-time borrowers. But, numerous banking institutions and NBFCs are nevertheless maybe perhaps not comfortable financing to new borrowers. Very first time borrowers face an unique challenge in getting that loan just like minimum credit rating available, it might be burdensome for credit reporting agencies to determine a credit rating and absence of credit rating helps it be problematic for banking institutions to provide. This end in a chicken and egg tale as getting financing without credit history is hard and building a credit history without that loan may possibly not be feasible. (más…)