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How a CIBIL score affects the approval of personal loan

CIBIL score or the Credit Information Bureau (India) Limited, maintains all the records of individuals and company’s credit-related activities like loans and credit cards. This CIBIL score acts as a very important role while applying for any loans. This body maintains all the credit-related activities of an individual and tracks his EMI and credit payments to his lenders, like any banks or financial institution. The CIBIL also takes into account of any late or miss payment for such individuals. Based on these activities the CIBIL uses a complex mathematical formula to calculate the credit score for any individual. This credit score is very crucial for any financial institution to judge a person’s loan repayments ability.
Normally a credit score above 750 is considered to be a health score to get a personal loan from any financial institution, there are some other benefits of maintaining a good credit score, it takes the process of approval of getting the personal loan faster and sometimes the amount gets larger. A healthy credit score defines that the individual has maintained a good track recorded of handling his previous loans and credit payments and has timely cleared all his EMIs and dues.
The CIBIL score is a three-digit number ranging from 300 to 900, the number which the individual possesses give the potential lender a quick idea of the credit health, the higher the score the higher is the chance of getting the loan approval gets simpler. There are various online sites where anyone can easily check his or her credit score by simply filling some data, like PAN number, email id, contact number, etc. and find out his credit score before applying for personal loan. These online CIBIL score calculators also help in understanding the amount of loan that the individual may apply for.

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