Today personal loan is something which is not unknown to people. It is one of the best options available to arrange funds in case of an emergency or a cash crunch situation. Generally, lending banks or NBFs offer and approve the personal loans after checking your eligibility on different criteria and credit history i.e. CIBIL or Credit Scores. Among all criteria, CIBIL Score plays a significant role in your loan approval. But many of us don’t understand what exactly Credit Score is and how it becomes an imperative factor concerning personal loans. Let’s understand in detail,
What is CIBIL or Credit Score and for what reason is it significant for a Personal Loan?
CIBIL (Credit Information Bureau, India Limited) readies a credit rating which acts as the main factor to check the eligibility of an individual for instant loans. The Credit score is a three-digit numeric synopsis of an individual’s whole credit history as a consumer. This is prepared after receiving the inputs given by the banks and other NBFs associations on a month to month basis and its range extends from 300 to 900. A score below 750 is considered as a low CIBIL score for the banks to sanction or approve the personal loan. Even if they approve, they may charge very high-interest rates on them.
CIBIL score relies on individual cash advance repayments, home loans, car loans, and credit card debts. If the person is paying EMIs or repayments on time, it positively affects his/her credit score, if they fail to do so, it harms the overall CIBIL Score.
How can you get an Instant Personal Loan with Low CIBIL Score?
Although the low CIBIL score reduces the chances of getting a personal loan approval still you can avail the instant loan through various other options, some of them are: