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Impact OF Personal LOANS ON THE CIBIL SCORE

Many times in life, we are in need of some urgent funds, which is for our personal needs. The personal loan looks like a boon for our financial needs, where we need not borrow money from our friend or relative. Along with the full esteem, we can enjoy the benefit of personal loans. When it comes to your duty to repay the amount which has been borrowed by you. If due to some unavoidable circumstances, If someone is going to miss the EMI and is unable to do repayment on time. Not only you will be stressed, as the lender will not leave you. The financial institution will push you a lot to pay the borrowed amount. And finally, your cibil score will also be adversely impacted. You can determine your EMI by using the personal loan EMI calculator.


Do you know what a cibil/credit score is? The cibil score is a 3 digit number that reflects all the history of the customer's credit profile. It ranges between 300-900. The minimum cibil score is 300 and the maximum is 900. .All the scores closer to 900 are excellent. Usually, scores of 750 and above are considered to be good. Higher the cibil score you have there is a higher chance of getting your loan approval.


Let's talk about the positive aspect of personal loans on cibil score. There is a huge impact on personal loan on the cibil score. If you will pay a personal loan in a timely manner, this is going to boost your cibil score. Also, it will give a good impression to any lender that you are a responsible borrower. You will not ruin their business but you can enhance their business. In good cibil score cases definitely, you will get the approval of a loan at a much faster pace.

Now you must be eager to know how much credit score you need to get a personal loan. It is advisable to have above 750 scores to qualify the personal loan. You can have Bandhan bank personal loan have good customer service.


Some key points which you should consider while taking a personal loan are as follows.

  • The rating of your credit can be down if you will borrow a personal loan.

  • If you will not miss any of the EMI and you will keep paying then your credit score will be regained and you have a much better score than earlier.

  • Also, your other loan which you have applied may get rejected because you are already in debt.


Bottom line: The unsecured personal loan which you have acquired can certainly bring a dip in your credit score. But, the only way to maintain a good credit score is to keep paying the EMI on time. Also, a personal loan can minimize your limit to take any other kind of loan


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