How to Calculate Cibil Score for Personal Loan?

Which is the minimum sum for a personal loan for CIBIL?

In general, it is recommended that you have a loan / CIBIL score of 750 or higher to apply for a personal loan Your loan score is a three-digit 300 to 900 number giving prospective creditors a fast indication of your loan fitness. The higher your score, the higher your chances will be.

CIBIL is one of India ‘s four approved credit bureaux, with a credit score, Equifax, CRIF Experience and High Mark.

As a first step, lenders typically look for a minimum credit score of 750 / CIBIL before deciding whether to process your application.

What is my credit value ‘s position in the credit process?

CIBIL  collects and maintains records of all credit activities involving banks, credit card companies and other formal lenders. It reports on all the transactions on a monthly basis from these lenders. This includes your EMI and credit card payments information (including any late or missed payment), balance remaining, changes in your total credit limit and any other information that may be relevant to your credit profile.

A complex mathematical formula is used for the calculation of your credit score based on this data. The score reflects your credit behavior and offers potential lenders a quick overview of your creditworthiness. If you have a good record of making all your payments in full, your score is usually high. If you have a history of default or overload, it will have a negative effect on your credit score.

I have a loan score lower than 750. Am I going to get a loan?

If you have a score between:

300-599 – You won’t be eligible for a credit. A low score is a warning to lenders that you have no history of good credit behavior. Most lenders will immediately reject your application. Immediate steps must be taken to rebuild your credit health and improve your mark.

600-749 – While it is not a high score, some lenders can support it. You may wish to look at other factors, such as the stability, monthly wages and extent of your other liabilities, which will affect your repayment capabilities in the future. If you believe you can fulfill your reimbursement burden despite your mid-score, your application will have a chance to be approved.

750 and above – You are very lucky to get a loan with such a ranking. There are various other advantages to a high score: the approval process will be much quicker; the loan amount could be higher; a lower interest rate could be negotiated. The entire process of authorizing the loan is much easier.

Factors deciding whether your application for a personal loan is accepted or denied are:

CIBIL Score and report

Your loan score and report is one of the most important parameters for the approval of your loan. Since you do not have to provide the lenders with security / collateral, they are in danger of losing money if you fail to pay their payments. Lenders must also carefully review and assess your credit background before approving your credit application.

Employment status

As personal loans are unsecured, lenders are responsible for ensuring that applicants have a consistent source of income and have worked steadily during the past few years. A individual with a history of changing jobs sometimes may not be regarded as an ideal case for approval of their personal loans.

Annual income

Your annual income (wages and other sources), which mean that you have enough money to repay your loan, is also an significant factor.

Payment EMI

During the review of your credit report, lenders test the EMI refund pattern and duration on both credit card and loan accounts. Daily monthly payments without any deductions are carried out, show the financial discipline and promote lender decision-making.

What documents must be submitted for a personal loan?

The types of documents needed when applying for a personal loan differ from borrower to borrower. Nonetheless, most borrowers need common documents:

Salaried individual documents:
  1. Identity proof: Aadhar card, passport, driving license, voting ID or PAN card
  2. Residence proof: aadhar card, passport, driving authorization, voting ID or utility bills
  3. Bank Record of Salary Balance Last 3 months
  4. Current 3 months’ pay slip
Self-employed documents
  • Identification evidence: Aadhar Card, Passport, Driving License, Voters ID or PAN Card
  • Residence proof: adhar card, passport, driving license, voting ID or utility bills
  • Proof of revenue: Accounting statements in the past two years
  • Bank statement last 6 months
  • Proof of Office Address

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