CIBIL Score: What should be the CIBIL score to take a loan, know this before going to the bank...

In recent times, personal loans have become available quite easily. However, if your CIBIL score is not good then you will have to face difficulties for this. Since a personal loan is an unsecured loan, the customer is not required to provide any kind of collateral. The loan is passed after checking the credit history of the customer. In such a situation, it is important to know what is CIBIL score and how much is required to get a loan.

What is the CIBIL score?
We also know the CIBIL Score as a Credit Score. If you want to understand in simple language, this is a number through which your financial health is measured. It is a three-digit number, which ranges between 300 to 900. This number is determined based on your credit history, repayment record, and credit inquiries. A credit score is calculated by the major credit bureaus of the country.

800 to 900 CIBIL score
If your credit score is in between then chances are high that you will get the loan easily. This means that you pay your MI on time and have never missed paying a credit card bill or loan EMI in the past. Your credit utilization ratio is less than 30 percent and you have a good mix of both secured and unsecured loans.

700 to 800 CIBIL score
If your credit score is in between then it means that you have probably paid the EMI on time every time. Although you may have missed it sometime in between. Your credit utilization ratio is good. You will get a loan in this range although the interest may be a bit high.

650 to 700 CIBIL score
If your CIBIL Score is in this range then you should correct it soon. Because in such a situation, you may have to face problems in getting a loan. Even if you get a personal loan, you will have to pay comparatively higher interest. Having a credit score in this range means that you are someone who has missed some EMI payments and credit card bills in the past. Therefore, your lender cannot completely trust you in terms of repayment of the loan amount.

300 to 650 CIBIL Score
If your credit score is in this range, you are highly dependent on credit and lenders cannot give you the loan amount. Borrowers with such credit scores may find it difficult to get a home loan approved.

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