An individual’s CIBIL score or credit score is like a financial report card that contains a numerical representation of their repayment history. In India, the CIBIL score range is 300 to 900, anything above 700 is considered suitable for loans or credit card approvals. The score of 600 and below is deemed to be Poor, while the score of 800 and above is considered ‘Excellent’. A Credit score is one of the first factors checked by the lenders when they receive a loan application. A CIBIL score is the assessment of an individual’s creditworthiness to repay the loan and financial health which is used as an indicator for providing loans and credit services. Hence it is necessary to do a CIBIL check when applying for a loan.
However, borrowers from the rural sectors can avail a loan with ease as the IT Ministry digital arm, Common Service Centres (CSC) has now partnered with TransUnion CIBIL Limited to provide rural loan borrowers with a CIBIL Score through its network of over 3.61 lakh CSCs across India. This will allow individuals living in rural areas to access loans quickly for their entrepreneurial and personal requirements. A good credit score can also be used by a customer to negotiate for a better interest rate on loan.
What’s a Good Credit Score?
When you apply for a loan, you need to have a good credit score. A good credit score is a reflection of excellent financial history. Before granting a loan, the lenders look through the applicants CIBIL report and compare the credit history of the past three years in the calculation of your credit score. Other factors like your credit utilization ratio, outstanding loans, loan servicing term and percentage of unsecured loans will impact your credit score. Generally, the credit score range is between 300 and 900, wherein score closest to 900 is considered an excellent score to avail loans on a lesser rate of interest from lenders.
High CIBIL Score
An individual’s credit score can range anywhere between 300 and 900; the score usually depends on their credit behavior. Having a score closer to 900 can increase your chances of getting a credit card or easy loan approvals. A good score is quite beneficial for a borrower while applying for a loan, as the lenders give more preference as they are assured with a high score and approve loans to such borrowers.
Low CIBIL Score
When applying for a loan, a borrower with low credit score might find it hard to find lenders that offer a loan, if managed to find one the interest rates that are provided by the lenders tend to be on the higher side. However, the low CIBIL score category is different for every lender. While most banks and lending institutions turn down borrowers with a poor credit score, terming them as less creditworthy and having higher credit risk. Most NBFCs and other financial institutions approve loans for individuals with a low score but will charge higher interest rates on loans.
How to Check CIBIL Score Online?
Banks or financial institutions are not the only ones who can procure their CIBIL report. An individual too can check their CIBIL score online and get the Credit/CIBIL report. Mentioned below are the steps to do a CIBIL checkonline:
Step 1: Click on the ‘Get Your Credit Score’ or ‘Check my CIBIL score’.
Step 2: Fill in the details relating to your PAN and identity proof etc.
Step 3: Click on ‘Proceed to Payment’.
Step 4: Once you’re redirected to the payment gateway, make the payment.
Step 5: Your CIBIL report and score will be sent to your email ID within 24 hours or to your shipping address if you opt for a hard copy.
Check CIBIL Score by PAN Card
You can check CIBIL score by PAN card and some necessary details. The CIBIL score can be checked with the following steps mentioned below.
Step 1: Visit the banks official or NBFCs website, click on “check CIBIL score“.
Step 2: Enter your name as per the PAN Card along with the PAN card number
Step 3: Mention all the required details correctly
Step 4: Enter all the contact details such as your email address, residential address and contact number.
Step 5: Read through to the terms and conditions carefully and click on the submit button.