We are here today to brief you on how important it is for an individual to maintain his or her cibil score on good term and what effects it has on the loan being sanctioned by the lending institutions. Let’s now look into some key points that refer with the importance of cibil score especially in personal loans point of view.
First, what is a cibil score?
Well, this score is represented in a format of a 3 digit number (for ex-750). The representation of this 3 digital numerical display is nothing but the borrowers credit history or credit summer in total.
Wondering, on what levels is this calculated and displayed?
Well, let us tell you, this total summer is shown from referring to a particular individual’s credit history. His or her credit history can be seen or inquired by referring to their cibil report. This report systematically consists and displays all the information of his or her payments using the credit over a certain period of time.Now, as explained above, all that credit history plays a major key role at the times of lending loans! Yes, this credit score of an individual represents his or her responsibility and behavior in paying according to their opted repayment schemes and fulfill the responsibility of taking a loan against something.
Every lending institution, let it be banks or Non banking financial companies always refer to a borrower's credit score without fail before sanctioning them with a loan. By doing this, a trust develops towards the borrower in a mindset to assume that he or she can be trusted to repay in a timely manner without fail. This leads them to lend you with a loan from their end. This reflects the timely repayment you have been making, your existing debt details and amounts, and all your credit inquiries on a whole top.
Now coming to cibil score for personal loan, it is usually considered to be minimum of at least a range between let’s say, 720 to upto 750. This score depicts that he or she is considered to be worthy to lend a loan to. But if in case, if it is below 720 and in a range of 600-700, then you might still be getting a loan, but eventually the personal loan interest rate can be high in comparison.
Let us take the case of HDFC Personal loan,This is the most talked about and opted for banks, in the case of personal loans and it is known for its quick approval time, which is just 72 hours. It also offers to borrow about ₹ 25 lakhs for any of the expenditure. But the cibil score again becomes a main key point and HDFC Personal loan looks for a candidate’s cibil score to be from a range of 700-750. Therefore, it is important for every individual to maintain their cibil scores.
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