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FAQ Can an individual customer claim input tax credit on bank charges? Input tax credit is generally available to GST-registered businesses using the service for business purposes; individual consumers not registered under GST cannot claim ITC on personal banking charges. FAQ Which risk category is usually the largest for a typical bank? Credit risk is generally the largest for most commercial banks, since lending is their core activity, though market and operational risk can become dominant concerns for banks with large trading books or complex technology operations. FAQ Can a branch sanction any loan amount on its own? No — branches operate within a delegated sanctioning power ceiling set by the bank's credit policy; proposals above that ceiling must be escalated to a higher sanctioning authority or committee. FAQ Does margin apply to all types of credit facilities? Margin requirements typically apply to asset-backed and working-capital facilities where a physical or financial asset secures the loan; unsecured facilities are assessed differently, largely on cash flow and creditworthiness. FAQ Who decides which resolution plan is accepted? The Committee of Creditors (CoC), made up primarily of financial creditors, votes on resolution plans; an approved plan then needs to be sanctioned by the NCLT to take legal effect. FAQ Does a One-Time Settlement affect my credit score? Yes — an OTS is typically reported to credit bureaus as a settled (rather than fully closed) account, which can negatively affect the credit score and future loan eligibility. FAQ Is Udyam registration mandatory for every small business? It isn't mandatory to operate a business, but it is generally required to formally access MSME-specific schemes, subsidies, and priority-sector credit benefits, so most eligible businesses register. FAQ Is KCC only for crop loans? No. While crop cultivation is the primary use, KCC limits can also cover post-harvest expenses, working capital for allied activities like animal husbandry and fisheries, and in some cases investment credit, depending on the bank's scheme structure. FAQ Does checking my own credit score lower it? No. Checking your own score is a "soft enquiry" and does not affect it. Only "hard enquiries" — when a lender checks your report as part of a loan or card application — can have a small impact. FAQ How often does my credit score update? Credit bureaus typically receive updated data from lenders on a monthly basis, so your score can change month to month as new repayment and utilisation data comes in. FAQ Does using a debit card build my credit score? Not directly — debit card usage generally isn't reported to credit bureaus since there's no borrowing involved. Credit score building typically comes from credit products like credit cards and loans, repaid on time. FAQ Is cash credit cheaper than a term loan? Not necessarily — pricing depends on the bank, collateral, and borrower risk profile. The key difference is structure: CC is revolving and tied to short-term assets, while a term loan is a fixed, amortising facility.