CIBIL Score for Personal Loan
Unexpected events such as an accident, home renovation or even a sudden travel plan not just disturb your peace of mind, but also require your financial assistance. In such cases, getting a personal loan seems to be an ideal option for many. A personal loan is a type of unsecured loan that helps you take care of the important and unexpected events in your life by providing you with instant access to funds. However, before lending, financial institutions do a thorough check of your financial history to determine your eligibility. One of the most important factors that is considered at the time of loan approval is your CIBIL Score.
What is CIBIL Score?
CIBIL Score is a three-digit numeric score that determines your eligibility for getting a loan. This score ranges between 300-900 with 300 being the lowest and 900 being the highest. This score is generated by CIBIL i.e. an RBI authorized credit agency. CIBIL takes into consideration an individual’s credit behaviour. A higher CIBIL score suggests a good credit history and ensures that the individual has repaid his loans on time. The score is generated taking into account an individual’s past 6 months of financial history. The score is generated based on algorithms that track the records of past payment, income, loan equities and others.
