Why is CIBIL Score Important While Applying for Loans?

What is a CIBIL Score?

CIBIL Score is a 3-digit score an applicant gets based on their credit history. It ranges from 300-900, with 900 being the highest score.

Minimum CIBIL Score for a Home Loan

PNB Housing requires a minimum 611 CIBIL score for Home Loan approvals.

Why Do Financial Institutions Check the CIBIL Score?

To Check the Applicant’s Creditworthiness

A good CIBIL score indicates that the applicant is a reliable borrower who pays the dues on time. It can help applicants get quick approval and better loan conditions.

1

To Check their Loan Eligibility

2

Financial institutions have a set CIBIL score requirement. If the applicant qualifies for this criterion, their application is further considered.

To Approve for a Longer Tenure

3

Financial institutions want to keep long-term relationships with good borrowers. Thus, applicants with good CIBIL scores get the privilege of choosing their desired tenure.

To Extend Better Interest Rates

4

A good credit score increases the credit quality of the loan, which translates into low interest rates.

How to Improve CIBIL Score?

These helpful tips will help the applicant boost their credit score:

1. Clear all outstanding dues 2. Pay all utility bills on time 3. Avoid taking too much debt simultaneously 4. Opt for longer loan tenure for payable EMIs 5. Check and update their credit report

Check your CIBIL score Now