What is The major roles of your cibil score while applying for a loan?
Your credit score plays a big role in how quickly your loan application is approved. Know how much credit score is required to get a personal loan. There is no fixed CIBIL score that can be said that if you have that score, you will get a personal loan. However, most banks consider a CIBIL score of 750 and above as good, and one of the first conditions to be eligible for the loan. Whenever you go to take a loan or get a any product financed, on that time your CIBIL score can checked by the financing companies or bank.
A score of between 650 and 749 is considered as a good cibil score, and lenders may offer you a home loan after checking your other financial details. However, lenders generally consider 650 as the minimum CIBIL score required for a loan. Marks between 550 and 649 are average and need to be worked out.
A high credit score can also help you get a higher loan amount, that too at better interest rates and with flexible repayment tenure. Credit score helps the bank or loan institution in the following ways:
Credit score shows how much risk is there in giving loan to an individual. It Plays a role in deciding the interest rate of the loan. Determines your loan limit (ie. how much you can borrow loan).
If your credit score is below than the requirement then your loan application can be rejected by the bank. So, if you know about your cibil then please stop applying again and again into other banks. This will make lower your credit score as various banks making inquiries on an individual's credit rating are viewed negatively.
Today, we will know about the importance of your CIBIL score is to get senction of your any kind of loan.
- Your cibil score is based on your payment history, types of credit used, application for new credit and amount you own.
- For the borrowers of home loan, their required CIBIL score should be at least 650 to avail a home loan.
- But if you want a loan at the best interest rate from the bank then your minimum required cibil score should be 750.
- This is considered a good cibil score of any borrower, and if your CIBIL score is between 730 to 900 then it is one of the very best CIBIL score.
- With the help from your good and maintained cibil you can get the loan on best and lowest interest rates from the bank.