"Demystifying CIBIL: A Beginner's Guide to Credit Scores"

All You Need to Know About CIBIL Scores and Reports -

 

If you want to apply for loan for the first time or you had already applied, you may have heard the term "CIBIL score" thrown around quite a bit. But what exactly is a CIBIL score, and why is it so important?

In this beginner's guide to credit scores, we'll explore what a CIBIL score is, how it's evaluated and what you can do to maintain a healthy score.

What is a CIBIL score?

A CIBIL score is a three-digit number that represents your creditworthiness. It's evaluated by the Credit Information Bureau (India) Limited (CIBIL) based on your credit history, including your credit card payments, loan repayments, and other credit-related activity.

The CIBIL score ranges from 0 to 900, with a higher score indicating a better credit history and a lower risk for banks and NBFC. A score of 750 or above is generally considered good, while a score below 650 may make it difficult to for processing any loan request raised by the customer be it individual or business entity. However a “0” cibil scores implies that the individual doesn’t have any credit history with the cibil department.

How is a CIBIL score evaluated?

A CIBIL score is evaluated based on several factors, including:

1. Payment history: Your track record of making on-time payments on your loan accounts.
2. Credit utilization:

Basic guide for getting loans from banks and NBFCs :

 

Basic guide for getting loans from Banks and NBFCs in India:


1. Determine your loan requirement: The first step is to determine the amount of money you need to borrow. This will help you narrow down your options and choose the best loan for your needs.

2. Check your eligibility: Before applying for a loan, make sure you are eligible for it. Each bank and NBFC has its own eligibility criteria, which usually includes factors such as your age, income, credit score, employment history, and other financial obligations. You can also take assistance from financial advisors who can help you by finding out right Bank and NBFC from where your loans can be sanctioned basis there criteria’s.