If you are looking for an instant personal loan or are considering borrowing one, you must have also come across the requirement for the same. The eligibility criteria and documents required would be a few lists that you would have taken extra care of while researching more about personal loans. One of the major requirements for applying for a personal loan is a good CIBIL score.
If you are new to the loans and borrowing scene, you might not know very well what exactly CIBIL and CIBIL scores are or you must be wondering what a good CIBIL score is. Worry not, in this article, we will take you through everything that you need to know about CIBIL scores, how CIBIL scores are calculated and how they are used, and how to increase CIBIL scores. By the end of this article, you will be capable of increasing your CIBIL score by following a few tips and then applying for an instant personal loan with a good CIBIL score.
Before we look at CIBIL scores, let us briefly look at what a personal loan is. A loan that can be borrowed by an applicant without submitting collateral also termed as an unsecured debt is called a personal loan. This loan is beneficial for the borrower since the interest rates are low, the repayment tenures are shorter and you do not need a specific reason for borrowing the amount. The loan amount can be used for any purpose and even be used to improve your CIBIL score.
You can avail of this type of loan without much paperwork. All you will need is your identity proof documents and a bank account. You can easily get your personal loan approved within a few minutes of applying and then use the amount as per your need and convenience.
Now, let us move ahead and learn in detail about CIBIL scores and how to increase CIBIL scores immediately.
We will also be answering a few frequently asked questions regarding how to increase CIBIL score using a credit card and other common queries to clarify all your doubts.
What Is Loaney?
Gone are the days when people had to spend hours lined up outside banks and money lenders to get a loan amount approved. A huge number of files, paperwork, collateral, and a trustworthy person as a guarantor were often the requirements of getting a loan. All of this could still not guarantee you a loan approval depending on other criteria set by the bank or any previous mishaps with the private money lender. If this is the kind of impression that scares you from borrowing a loan, then you must stop worrying and consider personal loans from Loaney.
Digital platforms and online portals for most essential services have proven beneficial to people and so is the cases with internet banking and online financial services. Loan borrowing and lending have also not been left behind and have made a significant presence online. One of the most reliable and fast-speed online loan borrowing platforms is Loaney.
Loaney is a trustworthy personal loan borrowing online platform. It offers instant personal loans at low-interest rates and for a shorter repayment tenure. You do not need to submit collateral, present a guarantor or specify your reason for borrowing while applying for an instant loan on Loaney. Loaney ensures the confidentiality of client information making it a reliable borrowing platform.
One of the best features of Loaney is that it offers loans of smaller amounts. Loaney offers a personal loan of up to Rs. 15,000 to its users for a repayment duration of about 2 months. The application procedure is easy and you only need a Pan card, Aadhar card linked with a mobile number, a picture of the applicant, and a bank account with a net banking facility. You can get your instant personal loan approved within a few minutes from the comfort of your homes.
What Is CIBIL Score?
Before we take a look at what the CIBIL score is let us understand what CIBIL is and what it does.
Known as the Credit Information Bureau India Limited in the past, the TransUnion CIBIL Limited is a credit rating agency A record of the credit-related activities of individuals and companies is maintained by this credit rating agency in India. The information recorded and maintained by CIBIL includes details about loans borrowed and credit cards and the credit history of people and companies.
According to the official website of CIBIL, “The bureau provides information and tools for gaining a clear understanding of their credit history and financial reputation, and guarding against the theft of personal information and potential fraud.”
One of the most important criteria of evaluation used by money lenders and banks, before approving a loan is the credit score. The credit score aids the moneylender in judging if you would be able to pay back the borrowed amount or not. The credit score determines whether you are worthy of borrowing another loan or not as it is like a history of your previous credit-related activities.
What Is A Good Credit Score?
The CIBIL Score is a three-digit number. This number is the reflection of a person or company’s previous credit-related activities. The CIBIL score reflects your credit profile and a summary of your credit history.
The CIBIL score is calculated on a scale that ranges from a minimum of 300 to a maximum of 900. A higher CIBIL score means that the chances of your loan being approved are more. A good CIBIL score is a score of 750 or above. A good CIBIL score ensures the loan application procedure will be faster and easier.
In the next section, we will be looking at how to increase the CIBIL score immediately and the advantages of increasing the CIBIL score.
The Advantages Of Increasing Your CIBIL Score:
The following are the eligibility criteria for applying for an instant personal loan in India:
- You must be a citizen of India.
- You must be 18 years old or above.
- Your monthly income must be at least Rs. 25,000 to 30,000.
- Your source of income must be certified and approved by a verified organization.
- You must not be on the CIBIL defaulters list.
- You must have a minimum CIBIL score of 750.
As you might have seen in the eligibility criteria, the CIBIL score is one of the most important factors that affect your instant loan approval. The CIBIL score helps the moneylender take a look at your credit history and determine whether you will return the borrowed amount in time or not. Although it is advisable to apply for a loan with a minimum CIBIL score of 750, it is not completely true that you cannot borrow a loan for a lower CIBIL score. A low CIBIL score does not imply that you cannot apply for a loan or your loan will not get approved. A low CIBIL score makes it difficult to get your loan approved and the procedure might take a longer time. That is why it is important to know how to increase your CIBIL score from 0 and improve your chances of getting your loan approved faster.
Let us now take a look at how to increase the CIBIL score using a credit card and how to increase your score immediately.
A high CIBIL score is not very difficult to achieve and maintain. Following a few steps, you can easily achieve your desired CIBIL score and then maintain it by keeping in mind just a few tips. You must be vigilant about your expenses and not overspend on your credit card. You must regularly make bill payments and repay any loans that you have borrowed.
This is how to increase your CIBIL score:
- Paying off your bills on time
- Regular and on-time payment of loan installments
- Maintaining the regular period of payment
- Avoiding taking too many loans simultaneously
CIBIL Scores For Personal Loan Benefits:
We’ve explored the basics of CIBIL scores, how to increase CIBIL scores, and the importance of CIBIL scores for borrowing a loan. A CIBIL score is important for borrowing a loan and is a major eligibility criterion. A high CIBIL score is beneficial in getting your loan approved without any issues and getting it approved faster. A low CIBIL score is not recommended for applying for a personal loan because it might slow down the approval and make the procedure challenging for you.
By following these steps you can easily work towards increasing your CIBIL score and apply for a personal loan:
- You must repay all your bills on time and not delay any payments.
- To strengthen your credit history, you must maintain your old credit accounts.
- Taking too much loan or debt at the same should be avoided.
- Pay off your debts, instead of transferring them.
- Do not close paid-off accounts.
These steps will not only be beneficial in improving your CIBIL credit score but will also make a positive impression on your moneylender and ensure them that you are worthy of borrowing a loan and capable of repaying the amount within the specified time.
For your convenience, we will now be answering a few frequently asked questions.
1. Is there a way to increase my CIBIL loan?
Yes, the CIBIL score can be increased for borrowing a loan and the loan amount that you are eligible for borrowing can also be increased if you have a high CIBIL score.
2. Can we buy CIBIL scores?
No, the CIBIL score cannot be bought. You need to work on your expenses and payments to improve your credit score and increase your CIBIL score for getting your loan approved.
3. Does EMI affect CIBIL score?
Yes, EMI can affect your CIBIL score. By missing out on regular payments and not paying your EMI on time can negatively impact your CIBIL score and hence lower the score.