3 Things to Know About CIBIL Score Required For Personal LoanSeptember 19, 2019
A credit score or CIBIL score is a 3-digit figure that gives lenders a glimpse of your financial credibility. This figure normally ranges from 300 to 900 and summarises how you have dealt with debt in the past. To calculate your CIBIL score, credit bureaus use complex mathematical formulae based on algorithms while considering your credit history.
Your CIBIL score is one of the first things lenders will inquire into when you apply for a personal loan as it is an unsecured form of credit. Lenders offer you a larger loan at a lower interest rate when you have a high credit score. So, read on to know more about a CIBIL score required for your personal loan.
What Credit Score Do You Need For Personal Loan?
Lenders prefer a CIBIL score of 750 and above while reviewing personal loan applications. The ideal CIBIL score, then, would be 750 and above. The higher the score, the more negotiating potential you have. For example, if you have a score of 850, you can leverage this to gain an interest rate reduction or an enhanced loan amount. That’s why it’s very important that you check your CIBIL score before you apply for a personal loan.
How Can I Get a Personal Loan With a Low CIBIL Score?
You may still be able to get a personal loan with a lower CIBIL score. However, you lose out on borrowing from top lenders, availing a high loan amount, and usually are stuck with high interest rates. So, if you find that your CIBIL score is below 750 or undesirably low, you can do two things. Either you can refrain from applying and make efforts to boost your CIBIL score first, or if the need for credit is urgent, you can talk to your lender and prove that you have the ability to repay your loan. check free CIBIL score online by visiting Bajaj Finserv website.
Approaching your preferred lender with a lower CIBIL score may be difficult, but there are simple facts that you can use to your advantage. For example, if you have gotten a raise in the recent past or changed jobs and now have a higher income, talk about how you are earning well in the present. The idea is that if you have substantial income, then repayment will be easy. You can further support this by showing salary slips and proving that you have been earning well for a while now.
Having seen the need of a credit rating that is high, now you can see how the personal loan you borrow not only caters to your present needs, but also impacts your future credit potential as well.
Does a Personal Loan Affect Your CIBIL Score?
Depending on how you make loan repayments, you can either augment or reduce your credit score by taking a personal loan. Since your CIBIL score aggregates how you make repayments, the ideal scenario isn’t having zero debt, but rather, paying off debt in a timely manner. So, paying your EMIs on time will fetch you a higher score, whereas skipping EMIs and paying them late will cause your score to dip.
Now that you know how your CIBIL score is important for personal lending, opt for a loan that makes signing up easy and offers powerful features too. One such option you have is Bajaj Finserv’s Personal Loan. Here you can apply for your loan online and upon approval, get the funds in your bank account in just 24 hours. Loan amounts range up to Rs.25 lakh and tenors span from 12 to 60 months. Additionally, interest rates are affordable, and things get even more economical when you use the flexi loan facility.
This feature allows you to borrow from your sanction in parts, pay interest only on the portion withdrawn, make part-prepayments at no extra fees, and even redraw the prepaid amount as per your financial needs. What’s more, it allows you to slash your EMIs by up to 45% by paying interest-only EMIs through the tenor and clearing the principal at the end of the tenor.
If you’re excited about Bajaj Finserv Personal Loan, then here’s a tip that will make getting your loan even easier. Check your pre-approved personal loan offer here. This simple step will give you instant approval and access to customised financing.