Nowadays, loan companies have made the application process of different types of loans very easy. All you need to do is visit the lending company’s webpage, fill up a very simple form and get approval in minutes. What’s more, with the advancement of fintech, loan underwriting processes have also been significantly improved, making it possible for you to get instant funding in a completely digital manner. However, take the time to know about the terms and conditions of this type of loan before applying for it. decided by the lending company Check CIBIL Score Along with this, you should also consider the important things related to age and employment, because all these things are directly related to the approval of the loan.
Among these, your CIBIL score is the most important. Lenders often check your CIBIL score first in your profile. If you want to understand why it is important to check your CIBIL score before applying for a loan, read on.
This is very important to fulfill the conditions of getting the loan
It is very important to check your CIBIL score before applying for the loan, as it is one of the most important of the terms and conditions to be approved for your loan. Most of the lending companies provide the minimum CIBIL score fixed for loan approval, which is generally 650 or above. However, if you want to get a loan at an affordable rate, then you should have a minimum of 750.
It is worth noting that despite having a low score, you can get a loan. Some lending companies may reject your application due to a poor score, but some companies may offer you loans that you can take advantage of. To get a personal loan with a low CIBIL score, you may need to submit additional documents and proofs to the lender, as well as the terms may not be as per your wish
This shows whether you are eligible to get the loan or not
Apart from meeting the loan eligibility criteria, your CIBIL score can help you know whether you are eligible for the loan or not. If you have not been assigned a CIBIL score yet, it means that you have no credit experience. In such a situation, your chances of getting an unsecured loan with a large amount become extremely low. If your CIBIL score is between 350 to 549, then your score is bad and your risk of default is very high. In such a situation, the lending companies do not see you as a trustworthy applicant. A score between 550 and 649 is considered good and the chances of your loan getting approved increase.
A CIBIL score between 650 and 749 is considered better, and many lending companies consider this score good for approval. And lastly, a CIBIL score between 750 to 900 is the best one to get the best loan offer.
Protects against the ill effects of non-approval of loan
Knowing your CIBIL score before applying for a loan can help you rethink your decision. Non-approval of any loan has a bad effect on your CIBIL score, and your score gets reduced for some time. The truth behind this is that the lending companies strictly check your credit report and this is reflected in your credit history as well.
At times such scrutiny and rejection is a danger signal for the lending companies and you can be considered as a greedy customer. Many companies do not approve loans of applicants with such a profile at all, as the chances of default are very high. However, if your earlier application has been rejected, then wait for a few months before applying for the loan again.
Gives you an idea of the loan terms that you can expect
Your CIBIL score has a great impact on terms like loan interest rate, sanction and even the loan repayment tenure. Personal Loan with Low CIBIL Score Taking it will have its disadvantages, which include higher interest rates and lower sanctioned amounts. In some cases, you may not find a convenient time frame to repay the loan. On the other hand, a higher CIBIL score makes it easier for you to get the loan and you can get the loan at convenient terms. This way you have a golden opportunity to get a loan at the best offer in the market. Not only this, if you have a high CIBIL score, you can negotiate convenient terms with the lender and get a deal many times better than what is given in the company’s advertisement.
Your CIBIL score is a very important part of your profile, so you cannot ignore it. The lending company will thoroughly examine your credit profile and a poor score will reduce your chances of getting the loan approved. Luckily, it is in your hands to improve your CIBIL score and the hard work put in for it always pays off. The best and most reliable way to do this is to make timely payments and avoid applying for multiple loans. To easily check your CIBIL score and download your credit report, avail this facility by visiting the Bajaj Finserv website.
You can check your CIBIL score for free instantly in just 3 easy steps. Its method is very easy and gets completed in few minutes. You just enter your details, verify your identity and view your report. Not only this, there is no ill effect on your score when you check CIBIL score online through this facility.