Several times in life you need additional money to meet all your financial goals whether short or long-term. All short term-goals like home renovation, international vacations and all long-term goals like buying a home or keeping marriage. An instant personal loan is just ideal to fulfil all financial dreams. However, almost all financial institutions have a few restrictions to follow to check creditworthiness. CIBIL score is one of the criterion for personal lending.
Required minimum CIBIL Score for Personal Loan
As we may be previously informed that CIBIL being the best credit information bureau provides a credit score which is of 3 digits based on your credit history. This score is considered important for any kind of borrowing you need today or tomorrow. So, higher the credit score, better are the chances for personal loan approval. A score of 650 and above is essentially required to be considered as a good credit score for loan approval.
Your credit score has an important role to play in the financial exposure and involves different dimensions of lending. Through this article, we will emphasize on the importance of credit score for availing a personal loan.
Rate of Your Creditworthiness
Your CIBIL score presents a transparent picture of your past history to the lending institution. It explains whether you can repay the loan on time or not. While a high credit score fills you up with confidence, while on the other hand a low score can dampen your spirits. You can always avail a personal loan with an average credit score. However, it will come handy with terms and conditions.
Approval of Loan Application
The CIBIL score plays an important part in simplifying your loan approval. It is so because a high CIBIL score increases the loan application request. Since a high score brings back the loyalty of the prospective lenders into the borrowers. It ensures to provide fast processing, quick approval & disbursal. This further helps to provide faster movement of the application thereby leading into immediate transfer of funds.
Competitive Interest Rate
Whenever you’re considering an instant loan, find out its interest rates carefully. With a high credit score, you can avail loans at reasonable rates of interest. It surely gives the bargaining power to negotiate interest rates with the lender. A few lenders even agree to waive off the processing and pre-payment fees. On the other hand, a low credit score lowers your chance for a favorable rate of interest.
Determination of Loan Amount
Your credit score can totally utilized to determine the loan amount. Ofcourse, a high score gets you a higher loan amount and a low credit score does the reverse. To top it up, a high credit score also helps to limit your documentation and ensure faster transfer of money.
The CIBIL score falls into a bracket of 300 to 900. The closer you get to the higher end, better are the chances of your loan disbursement. Try out for free CIBIL score at zero costs. Simply submit your personal details and view your credit score totally free of cost.