CIBIL score is not another buzzword or jargon that we get to hear every second day. It is one of the vital parts of the credit facilities. While availing of a credit facility, a borrower has to be aware of their score. The credit or the CIBIL score represents an individual or entity's creditworthiness, and, thus, a crucial element that must be considered cautiously. It fluctuates with the various financial decisions that borrowers take throughout their life. For instance, if an individual takes a credit card but does not repay the credit amount, then the agency must maintain the report will make the required changes. The credit score will deteriorate. Whereas, if the individual makes payments on time, the score will enhance and create chances of availing other credit facilities in the time to come.
The CIBIL is an agency that looks after the credit report of the individuals and organizations. They are a third party and hence, provide unbiased results, increasing the credibility of the report. The CIBIL (Credit Information Bureau India Limited) score, also known as the credit score is a paraphrased version of the CIR (Credit Information Report). It is a three-digit numeric summary of an individual or entity's credit history. It acknowledges the credit repayment history and pattern across various loans and records the form of credit taken by the borrowers (individuals and entities).
CIBIL maintains the record of every credit decision taken in the past by the individual or entity. It exhibits the creditworthiness of a borrower. In plain words, it shows how reliable or risky an individual or entity is as a borrower. Even the companies and other business owners are given a credit score. The credit report makes it clear eventually and defines whether a borrower will be able to carry the weight of a loan or not in the future.
Most of the credit forms require the borrowers to have a certain level of credit score, but not in a gold loan. A gold loan is a secured form of a loan. It is granted against a highly valuable and liquid asset that makes it desirable collateral for the lender, and the loan becomes easier to access by the borrowers. It is a win-win situation. The cost of this loan that is the gold loan interest rate is minimal and approachable. The credibility is justified by the security provided.
Gold loans such as the UCO Bank Gold Loan, are available for all the borrowers who satisfy the eligibility criteria, provide the documents, and present collateral.
The lending institution (banks and non-banking financial companies) may not demand a CIBIL score. Still, late payment or nonpayment of the loan amount can adversely impact the credit score of the borrowing individual or entity. The borrower must keep the point discussed above in mind while applying for a gold loan or as a matter of fact for any credit facility.
Comments