Want to avail Personal Loan? You need to know these key things about CIBIL Score

Know what CIBIL score is and how it impacts approval of your Personal Loan.

New Delhi: Covid or non-Covid times, there is always an all-weather need for personal loans. Thanks to so many online avenues that are now available, personal loans have become one of the most popular routes of financing in the last few years.

Personal loans being collateral-free offerings, they are also one of the easiest options that comes to your mind for purchasing small things like home or kitchen appliances, lifestyle requirements, electronic accessories et al.

However, before applying for personal loans you must know some key things about CIBIL Score.

What is a CIBIL score?

The Credit Information Bureau Limited or CIBIL issues you a three-digit number that is being calculated on the basis of your previous credit behaviour. CIBIL scores measure your creditworthiness and range between the lower range of 300 and upper range of 900. The closer you are to the upper range, the better are your chances of getting loan approval.

The Credit Information Bureau (India) Ltd. (CIBIL) was incorporated in 2000 and launched its operations in April 2004. Following enactment of the Credit Information Companies (Regulation) Act (CICRA) in 2005, three other Credit Information Companies (CICs) were also set up.

The Credit Information Bureau (India) Ltd. (CIBIL) was incorporated in 2000 and launched its operations in April 2004. Following enactment of the Credit Information Companies (Regulation) Act (CICRA) in 2005, three other Credit Information Companies (CICs) were also set up.

 What is the minimum CIBIL score for personal loan?

Usually, you can avail a personal loan if you have a CIBIL score of 750. Points below this may subject you to loan rejection or a loan approval with higher interest rate.

Key factors that determine your CIBIL score

The CIBIL score evaluates your past debt performance.

It accesses the kinds of loans availed by you.

It sees your Credit exposure.

How to check your CIBIL score?

You can check your CIBIL report online. Several financial holdings offering you personal loans also have this facility.