Personal Loans are one of the most widely used funding methods that aid millions of people during difficult times. The funds obtained through this loan provide you with complete freedom regarding using the money. However, the CIBIL score might obstruct your financing journey when you apply for this loan. If you are unfamiliar with this terminology or are unsure of the ideal CIBIL score required for Personal Loan, check this article.
CIBIL refers to Credit Information Bureau India Limited. It is a Reserve Bank of India (RBI) approved agency whose primary function is to assess the creditworthiness of borrowers. CIBIL is one of India's most important credit bureaus, assisting financial institutions in risk assessments of applicants. CIBIL's functionality is based on data shared with them by a variety of financial institutions, data collection agencies, and other similar organisations. CIBIL Score is an important factor that lenders consider when giving you a loan. Therefore, it is always advised to maintain at least a minimum CIBIL score to get Personal Loan. A borrower must meet the minimum threshold of the CIBIL score for a Personal Loan to increase the chances of a Personal Loan with a lower interest rate and several benefits from a lender.
However, many people confuse CIBIL with the CIBIL score. In reality, both terms are only interrelated, but their meanings are vastly different. So, what exactly does the CIBIL score mean? Let's find out.
A CIBIL score is a three-digit score. It represents a borrower's capacity to make timely payments on credit obligations. Please note that the CIBIL score is also sometimes referred to as the credit score.
To calculate the credit score for a loan, the credit bureau considers your total debt across lenders along with your payment history. The platform demonstrates your creditworthiness in numeric expressions ranging from 300 to 900. Most lenders require a minimum credit score of 750 or more to be eligible for a Personal Loan. However, if you want to get a loan easily, your CIBIL score should be as close to 900 as possible. A score of more than 750 is considered a good CIBIL score for Personal Loan. However, there are some institutions which provide low CIBIL score Personal Loans against collaterals.
How much CIBIL score required for a Personal Loan is one of the most common questions asked these days. Most lenders believe that the credit score required for a Personal Loan should be more than 750 for the loan application to be approved. However, the minimum CIBIL score for Personal Loans is 750 as it is an unsecured loan. A person with a credit score of more than 750 can obtain a large loan at a low-interest rate. However, a credit score of less than 750 does not mean that you will be rejected for a loan. There is still hope to secure funds from a lender. Let's look at the various ranges of scores to understand this better:
Since lenders are likely to offer a Personal Loan based on CIBIL score, make sure you pay your loan EMIs & bills on time to maintain a good credit score. Doing this will not only help you get a high loan amount but also you will get a competitive rate of interest on a Personal Loan.
Also Read:- Top 8 Unknown facts about CIBIL Score
Four major factors to determining your Credit Score for Personal Loan:
To check your CIBIL score for free on Poonawalla Fincorp’s website, you need to simply follow the steps given below. Just a few clicks and your CIBIL score will be instantly displayed!
At Poonawalla Fincorp, we believe in providing you with an end-to-end experience. Hence, we do not just stop at displaying your CIBIL score. You can also view your CIBIL report details by clicking on the “View Report” button.
If you need a Personal Loan with a bad CIBIL score, some factors can help. Applicants that meet the requirements specified below can still receive funding with ease.
To improve your CIBIL score from 550 to 750, you can follow the below-mentioned tips:
The whole concept of a CIBIL score is to check if you can repay your dues by ascertaining the required CIBIL score needed for a Personal Loan. A good score does not always guarantee you loan approval. Similarly, a bad credit score for a Personal Loan does not always imply rejection. The lender evaluates several other parameters before accepting or rejecting your loan application. Most banks generally require you to show a minimum CIBIL score required for a Personal Loan. CIBIL Scores are measured on a scale between 300 and 900, with 900 indicating the highest and 300 being the lowest. The minimum credit score for a Personal Loan that a borrower generally needs to maintain to be easily eligible for a loan is 750. Having said that, it can never hurt to maintain a high credit score. As such, even if your CIBIL score is average, but you have stable employment and a steady income, you can get a Personal Loan from Poonawalla Fincorp without any trouble.
1. How to check the CIBIL score for a Personal Loan?
• You can check your CIBIL score for free with Poonawalla Fincorp. Simply click on this link: https://poonawallafincorp.com/check-cibil-score.php to get started.
2. Can I get a Personal Loan with a CIBIL score between 300-700?
• A CIBIL score above 700 is generally considered more favourable for getting a Personal Loan. Any score lower than that can result in high-interest rates. If your credit score is between 300-550, you might not be able to avail of a Personal Loan. Even if you do, it could come with high-interest rates, added document scrutiny and a lower loan amount.
3. Can I get a Personal Loan with a CIBIL score of more than 700?
• You can certainly get a Personal Loan with a CIBIL score of more than 700 as it reflects good credit behaviour. You can find the best Personal Loan offers at attractive interest rates with a 700+ CIBIL score.
4. What is the minimum CIBIL score required for a Personal Loan application?
• The minimal CIBIL score required to apply for a Personal Loan with Poonawalla Fincorp is 700.
What, if your CIBIL score is high? Why the CIBIL score is so important? If you are looking for answers to these questions, weâ€™ve got the answers ready for you. A credit score is a 3-digit score given by any of the credit bureaus - CIBIL, Experian, Equifax or CRIF High Mark, based on your past and present credit behavior.
The Credit Information Bureau India Limited or CIBIL is one of the 6 registered Credit Bureaus in India which is responsible for collecting and storing your credit information.
Personal loans are one of the widely used funding methods that aid millions of people through difficult times.
Loans have made our lives easier and simpler. From home loans to car loans to business loans, many types of loans are available in the market to cater to your different needs.
If you have a CIBIL score of 750 and above, the chances of getting a loan at an attractive interest rate are higher. The CIBIL credit score is usually a value between 300 and 900.
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Subhajit Dey| May 02, 2023
My salary is 86000 inhand after tax deduction.. currently no emi, had default earlier due to buisness went in loss. need 2 lacks loan