Beyond Salary: Credit Score, Behavior Dictate Loan Terms, Not Just Income

• Two borrowers with identical salaries and loan applications received vastly different interest rates and repayment terms due to their credit behavior.
• Anand Agrawal, Co-founder & CPTO, Credgenics, highlights that timely payments, prudent credit use, and responsible credit utilization are crucial factors.
• Adhil Shetty, CEO of BankBazaar.com, notes that RBI data shows retail credit growth driven by algorithm-led underwriting, prioritizing repayment history and credit utilization over stated income.
• A strong credit profile can significantly lower interest rates (300-600 basis points), improve approval timelines, and unlock higher credit limits.
• Vinay Singh, CPO of Olyv, emphasizes that good credit scores lead to better loan options, while poor scores can result in higher rates or loan denials, regardless of stable income.