BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Personal credit score
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List of banks from whom loans have been taken
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The total amount of loans availed
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The amount of outstanding loan
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Detailed explanation-1: -CIBIL is the oldest and most well-known credit information company in India. It maintains a database of credit information for individuals and businesses and provides credit scores and reports to banks, financial institutions, and other organizations.
Detailed explanation-2: -Under the purchase and discounting bills, a borrower can obtain credit from a bank against its bills. The bank purchases or discounts the borrowers bills. The amount provided under this agreement is covered within the overall cash credit or overdraft limit.
Detailed explanation-3: -Perhaps most important, credit reporting allows borrowers to build a credit history and to use this “reputational collateral” to access formal credit outside established lending relationships.
Detailed explanation-4: -Credit Information Sharing (CIS) is a process where credit providers (such as banks, microfinance institutions, saccos, etc.) exchange information on their outstanding loans and advances through licensed Credit Reference Bureaus (CRBs).