वैयक्तिक ऋण के लिए सिबिल (CIBIL) स्कोर

“Check your CIBIL score here!” “What is your CIBIL score? Or “Your CIBIL score for personal loan is low.”

Do these lines look familiar to you? You must have come across such messages while inquiring or applying for a personal loan. Well, CIBIL score or credit score is one of the common types of checks in the basic Know Your Customer (KYC) documentation process for personal loan approval.

What is a CIBIL score?

A CIBIL Score or Credit Score is issued by the Credit Information Bureau of India Limited to every borrower that denotes his or her creditworthiness which is determined by factors such as payment and credit history, types of credit and number of loan accounts, due loan amount, etc. It is a three-digit number that ranges between 300-900 which is calculated on the basis of the financial history of the applicant.

So, how much CIBIL Score is required for a personal loan? Well, if you have a CIBIL score of 750 or more, you are good to go.

In Bank of Baroda minimum CIBIL Score for Personal Loan is 701.

You can check your CIBIL on a CIBIL report that gives an overview of your credit health, worthiness and utilization.

Why is a CIBIL Score Important while Applying for A Personal Loan?

A CIBIL Score or credit score for a personal loan is very important for you because of the following reasons:

• Credit Status: A CIBIL score helps you to know your credit status. Your loan application approval somewhat depends on your CIBIL score.
• Higher Limits: If you have a good CIBIL score, you may get twice or even three times higher loan eligibility when you apply for personal loan which is not possible in a low CIBIL score.
• Lower Interest Rate: If you have a very good CIBIL score, the bank may grant you a loan at a lower interest rate whereas with lower CIBIL score for personal loan, you may get a loan at a higher rate of interest.
• Longer Loan Duration: If you have an average credit score, you can get instant personal loan for 3 years and with a high credit score you will be able to get personal loans for as long as 5 years. (This statement is not true in Bank of Baroda’s prospective).
• Minimum Paperwork: If you have a very good CIBIL score, the bank may grant you a loan with minimum paperwork whereas the paperwork maximizes, if you have a lower CIBIL score. (This statement is not true in Bank of Baroda’s prospective).
• Fast Processing & Quick Approvals: If you have a low credit score, the bank may take time to cross-check your details. This makes the approval process slow and time consuming. On the other hand, a high credit score makes the approval of personal loan process a cake walk for you.
• Easy Approval on Leased or Rented Properties: A good credit score may get you easy loan approval on rented or leased properties like homes, commercial complexes, apartments, etc.
• Higher Negotiation Authority: If your CIBIL score is very high, you have the negotiation authority to bring down your interest rate, customize your payment personal loan tenure or ask for other benefits and privileges.

Things You Should Consider to Improve Your CIBIL Score for a Personal Loan

Though getting a personal loan without CIBIL score is a tough nut to crack, ways to improve your CIBIL score for a personal loan is no rocket science. Some of the necessary things which you can do to improve your CIBIL score are:

• Regular credit payments - You must ensure that your outstanding payments, including loan EMIs, credit card bills, etc. are paid on time because not paying your bills on time will impact your credit score for a personal loan.
• Monitor your credit utilization ratio - Basically, underutilization and overutilization, both can be harmful to your CIBIL score but never utilize your entire credit limit on your credit cards, if any. You should avoid using more than 30% of your credit limit to keep your credit scores high. For instance, let us assume your credit limit is one lakh rupees

(INR 1,00,000), in this case it is a good option not to spend more than thirty thousand rupees (INR 30,000) on that credit card.

• Demonstrate solid repayment history - You must always maintain a clean and reliable record of all your payments and clear debts because banks keenly observe your credit report.
• Upgrade credit limits - Take no time in taking up new credit cards or higher credit limits upgrades offered by your existing bank as this will present you as a creditworthy customer.

How to Get a Personal Loan without CIBIL Score?

Though CIBIL score acts as a catalyst in your personal loan application, there are personal loans for holders who can avail a personal loan without a CIBIL score or with a low CIBIL score. Here are some of the ways that can help you with a personal loan without CIBIL score.

• Apply for collateral-based loan - If you have a low or no credit score, you can offer a security on a personal loan. All you need to do is pledge any of your valuable assets as collateral on the loan.
• Show your creditworthiness - If you have a stable source of income and have paid your bills on time, you can easily avail a personal loan without a CIBIL score. Displaying your salary slips or bank statements has a higher possibility of getting a personal loan without CIBIL score and income proof is the life saver here. (This statement is not true in Bank of Baroda’s prospective).
• Get a co-applicant or a guarantor - You can apply for a personal loan with a co-applicant or a guarantor with stable income and records will increase your chances of getting the loan approved. (Co-applicant is not allowed in Personal Loan in Bank of Baroda).
• Avoid applying for a higher loan amount - If you have a low credit score, you can apply for a lower loan amount. (Loan limit is not directly linked with CIBIL Score).
• Request for a History not Available (NA) or No History (NH) on your credit report - You can ask your bank to mark NA or NH on your credit report in case of the absence of any previous credit activity and credit in the last 3 years.