Now Show Your Credit History to Rent a House

Bangalore: In this present market scenario, cautious home owners are asking for credit history of the tenants. Surprised? Yes, landlords are checking credit history before giving their home on rent. This step is to ensure that the tenant would be able to pay the rent on time. Frequent layoffs and decline in pay packages that occurred due to economic slowdown have made owners take this bold step.

Checking the credit history is an emerging trend in India which is being followed only in metros like New Delhi and Mumbai so far. According to a real estate analyst, the trend of providing credit history is only restricted to buyers who seek high-end residential properties and commercial properties, reports Mahua Venkatesh of Hindustan Times.

Unlike in developing economies, the trend of producing credit history is only at an emerging stage in India, said the Credit Information Bureau India (CIBIL), the credit information bureau that contains the credit history of commercial and consumer borrowers.

"In India we may see this trend picking up and it could become a norm rather than an aberration," cited Arun Thukral, Managing Director, CIBIL, reports Hindustan Times.

"The trend of verifying tenant creditworthiness via credit history depends on the availability of credit card history but as far as budget to mid-income segment residences is concerned, credit report use is still not a norm if we look at the pan-India scenario," stated Santhosh Kumar, CEO, operations, Jones Lang LaSalle India, a real estate consultant.

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