Risk-based pricing of loans is a win-win for both the banks and borrowers. Here, banks are able to evaluate the risk of a borrower before offering a loan at a particular interest rate; also borrowers with good credit scores benefit from lower interest rates. You should maintain a credit score of 760 and above throughout the tenure of the loan to get a benefit. While maintaining a credit score you need to keep a track of your credit report on a regular basis. Having a good credit score just at the time of borrowing would not suffice. You need to maintain a reasonable credit score throughout the tenure of the loan. Interest rates keep fluctuating based on a change in credit score. In case the credit score falls, banks increase the interest rate. Says Sujata Ahlawat, Vice President and Head, Direct to Consumer Interactive, TransUnion CIBIL explains, It is basically preferential pricing that is offered by some of the banks to reward the borrowers good credit behaviour with low interest rates. Banks are considering past credit history of the loan applicant using third-party credit scores to derive default probability. Ahlawat also adds, In risk-based pricing, your credit score is affected in case there is delay in instalment payments/paying credit card bills or loan settlements. For instance, interest rates change for a borrower from Syndicate bank in case she delays monthly instalments for more than 30 days three times in the preceding one year. Based on the above, please answer the following:

1. Name the credit rating agencies in India for individuals. 2. Enumerate the ways to improve ones credit score. 3. Ram keeps on applying for unsecured loans without availing them , discuss the impact on his credit score 4. Sheela keeps heavily using her credit card but each month regularly pays her minimum amount due. How will this reflect on her credit score ? 5. Name the banks in India offering repo based pricing or risk based pricing on home loans. 6. Does RBI allow banks to charge a credit-risk premium over external benchmarks for calculating the effective interest rate?