Are you worried that you will not be provided with a loan for renovating your house or an upcoming wedding because of your poor CIBIL score? There are still ways to easily get a personal loan. But, first of all, let us have a look at the case study which tells us why the cibil score is important.
Financial Case Study:
“My name is Peter, and I have always been a poor money saver. It’s not that I have less income, but my demands were more. That led to a number of loans from credit cards, I never actually wanted. So, when the time came and I really needed money to invest in my startup. I went for a cibil score check app and felt the pressure because of the cibil score. They were low, and no bank was ready to give me a loan on that. I eventually came up with several ideas and got some help from my dad. But I will never forget the amount of hardships that I had to go through just because my cibil score was not up to the bank’s expectation for giving loans. Since then, I heartily advice any person with income, to pay their loans back on time and maintain a healthy cibil score.”
It is evident from this case study that banks do check your cibil score when it comes to giving loans. Your credit history is your credibility as a bonafide customer and hence it is taken very seriously.
So, try to maintain your cibil score at any point. In fact, there are dedicated cibil score check app to let you know about your current score. However, if you fail, then there are other ways as well through which you can easily get a personal loan.
What is a CIBIL score?
CIBIL, the organization:
Credit Information Bureau (India) Limited, also known as CIBIL, is India’s first credit information company, that was founded in August 2000. It maintains records of your repayments for loans and credit card bills.
More Insights on Cibil Score:
Banks and credit institutions give these details to CIBIL on a monthly basis, you can check your score on cibil score check app. This information is then used to create Credit Information Reports (CIR) and credit scores. This score is your CIBIL score, which is given back to the credit institutions to help evaluate and approve your loan applications.
A CIBIL score is a numerical expression based on your credit files. It gives your lender a rough idea of how likely you are to default on loan repayments. But as long as you have a good score, you wouldn’t have to worry about not being able to get a Personal Loan.
Good CIBIL scores
CIBIL scores range from 300-900. A good CIBIL score ranges from 750-900 and is likely to get your loan request approved easily. If your score is 750 and above, banks and credit institutions consider you creditworthy. Naturally, if your score is less than 750, banks find it risky to provide you with a loan or a credit card.
In a nutshell, the closer your score to 900, the easier it is for you to get a loan.
But what if you have a low CIBIL score?
Whenever you need to get a loan, banks do a background check on your CIBIL scores.
But sometimes, you might get your loan application rejected even when you’ve actually never applied for one previously. Poor credit scores can either be because of your own poor repayment history, or a complete lack of credit history. This is why banks turn down so many applications.
But there is also some good news.
A poor CIBIL score does not necessarily mean that you cannot get Personal Loans. With the help of peer-to-peer lending, getting an unsecured Personal Loan is not very difficult. Peer-to-Peer lending (P2P lending) is a platform where you can contact a lender online.
Since peer-to-peer lending companies run their operations entirely online, they can provide loans with lower overheads.
Bajaj Finserv Personal Loan eligibility
Bajaj Finserv also ensures that you have a good CIBIL score before providing you with a Personal Loan. The minimum requirements for a Personal Loan from Bajaj Finserv are that you need to be at least 25 years old, and earning a salary that is at least Rs.25000 per month. The minimum salary criteria, however, may differ from city to city.
In case you haven’t applied for a Loan ever before, you won’t have a credit history. However, you can still apply for a Personal Loan at Bajaj Finserv. It only means that you are new to the credit market.
Eligibility when you have poor credit scores
You can always improve your eligibility to get a Bajaj Finserv Personal Loan.
Maintain a good credit history. Always pay all your EMIs on time or refinance it for a longer tenure. If you have lesser EMIs left on a loan, prepay them and close the loan. This way, you will have a higher disposable income and also stand a chance of getting a loan for a higher amount.
At first, try to know how to check cibil score correctly, because there are several spam sites which will not give an accurate result. In case you need a loan, do not apply for it in several banks at the same time.
Because of this, all the banks run a background check on your CIBIL score at the same time. This will get recorded in your credit report and can also affect your credit score. Having too many credit cards is also unfavorable. Even if you haven’t used all the credit in your credit cards, your overall credit limit will get reduced.
Going in for secured loans is a smart move. These are looked at favorably and also increases your eligibility.
You still need to have a good CIBIL score to get good Personal Loan with a low-interest rate. Even if you get a loan with a low CIBIL score, make sure you improve the scores by making all your payments in time.
Learn how to check the cibil score and analyze your position in the financial arena. It is only feasible to look for options when you know where you are standing at this point and what your needs are exactly.
Mashum Mollah is a tech entrepreneur by profession and passionate blogger by heart. He is on a mission to help small businesses grow online. He shares his journey, insights and experiences in this blog. If you are an entrepreneur, digital marketing professional, or simply an info-holic, then this blog is for you. Follow him on Instagram, Twitter & LinkedIn