There are some life situations like marriage, medical treatment, or education, people require personal loans. A CIBIL score is a gateway to a quick personal loan because it reflects high creditworthiness.
A high credit score indicates fewer risks for the lenders and based on that, lenders evaluate the eligibility of the borrower. You need to do the secure CIBIL login to get the details of the CIBIL report and score.
If the loan is unsecured and has been taken without collateral then it is important to check the creditworthiness of the borrower. A good CIBIL score is higher than 750 and this score helps you to get a personal loan easily.
What is CIBIL Score?
A CIBIL score is a unique score provided by TransUnion CIBIL. This credit score ranges from 300 to 900 and if the score is higher than 700 then it is considered a good amount. The more this number is the more your creditworthiness is.
High Credit score and loan approval
A high CIBIL score is the first thing any lender looks at in his borrower’s profile. CIBIL score reflects the good repayment track record of the borrower. As mentioned earlier, personal loans are collateral-free in general and lenders can’t seize any asset of the borrower in case of default. That is why they make sure about the credibility of the borrower in the beginning.
Here are the ways with which lenders perceive the perspective of borrowers.
- The borrower should be fiscally responsible
- There should be a great repayment track record
- Good credit history
- Low level of debts
All these points indicate that there is a low risk in giving the loan and the borrower can avail of the many other benefits by maintaining a high credit score. This can also give some benefits to the loan borrower.
- Low-interest rate
- Higher loan amount
- Quick approval
To maintain a good CIBIL score, pay all your dues on time and never default any of your credit card EMI. Always maintain a balance between secured and unsecured debts. This will surely help you to get a quick personal loan. To check, your eligibility does the CIBIL secure login and know your latest CIBIL score.