Before knowing how CIBIL Score in important for Personal Lending, firstly know about What is CIBIL Score and Personal Lending.
The CIBIL score plays a very vital role in the Indian financial system because it helps home loan applicants secure credit rapidly. It can be termed as a numeric figure that sums up the credit history of prospective home loan buyers and helps them to get their home loan applications approved. These are based on several facts and details like the borrower’s payment history, number and types of loan accounts, outstanding and opening loan amounts, credit inquiries, and guarantors on the loan. If people want to take a personal loan or home loan, they cannot afford to ignore the Credit Information Bureau of India Limited (CIBIL) Score. It helps lenders to decide whether to grant you a home loan or not.
A Personal Lending or can be called as Personal Loan. It is a type of installment loan in which a loan pay back over a set period of time with interest. If anyone borrowed money from a bank, credit union, or online lender they can pay back in fixed monthly payments, or installments, typically over two to seven years. Mostly personal loans are unsecured not backed by collateral.
There are several occasions in life where you need access to additional finance to fulfill your short and long-term goals. While Short Term-Goals include home renovation and going on a vacation, and on the other hand Long-Term Goals includes buying a home or marriage. The ideal funding option to address these goals is Personal Lending. However, prior lending, financial institutions look at certain parameters to gauge people’s creditworthiness. CIBIL Scorescore is one among them.
Facts How CIBIL Score is Important for Personal Lending :
- CIBIL Score determines people’s creditworthiness.
- It finds the rate of interest and loan amount.
- A healthy score expedites the loan application process.
- Anything above 750 must be considered as a good score.
Personal Loans are becoming a popular avenue of financing as they don’t require any asset to be pledged as security and can be easily applied for online. As per a recently conducted survey, approximately one-third of Indians would readily take a loan to buy a smart TV, smartphone or other consumer durables to upgrade their lifestyle and a significant share of them would option for an unsecured personal loan to meet their goals. However, since a personal loan is a collateral-free offering, obtaining quick approval requires people to have a stellar credit score.
Once people have an excellent CIBIL score, they can get access to offerings the Personal Loan like Credit Help India. Here, people get collateral-free funding of up to Rs.25 lakh, repayable over a flexible tenor of up to 60 months. Additionally, with the Flexi loan facility, people can borrow from their sanction in parts, without having to submit multiple applications and pay their interest only on the amount they withdraw. Further, with the simple eligibility criteria and minimal requirement for documentation, people can enjoy a hassle-free application process, with online approval in 5 minutes. Finally, they can check their pre-approved offer to make the most of their CIBIL score and avail instant financing through a customized deal.