Australia’s 127/7 against India’s 126/7, France’s 4 against Croatia’s 2, and Rafael Nadal’s 6-4,6-3,6-2 against Dominic Thiem.
Now, these are not random figures and names mentioned above. These are winning scores of memorable matches played and won in the recent past.
What we are trying to say is that scores matter – both on and off the sportsground. Scores like your CIBIL score define your capability to secure funding – especially for unsecured loans like personal loans.
Now imagine if you have some unforeseen expenses that are about to happen, and for which you don’t have enough funds. You can borrow some by availing a personal loan. Since personal loans are quickly available, it can be used for a wide gamut of purposes. You can use a personal loan for medical emergencies or use it to renovate your home or for travelling to an exotic destination. The best part about personal loans is that there is no restriction on how you use the funds.
When you approach a lender for a personal loan, you have to fulfil certain eligibility criteria. At Tata Capital, to avail a personal loan you have to be between 22 to 58 years old, and you should have a minimum monthly income of Rs 15,000. This is to ensure your personal loan repayment capability.
Over and above these eligibility criteria, you should also have a good credit score or a CIBIL score for your personal loan application to be approved.
What is a CIBIL score for a personal loan?
The CIBIL credit score is a three-digit number between 300 and 900 that represents a summary of individuals’ credit history and credit rating. This number is very important as it is the deciding factor for the lender to ascertain your personal loan repayment ability, and decide whether they should give you a personal loan or not. Depending on this number, your personal loan application gets approved or rejected. Tata Capital gathers information from banks and other financial institutions about the loan repayment behaviour of customers and aggregates this information to produce a score or number that indicates a customer’s creditworthiness.
The right CIBIL Score
The minimum CIBIL score for a personal loan is 750. Any number above 750 would mean that the applicant is creditworthy, and thereafter applications are processed without any hassle. As a rule, credit scores range from 300 to 900, 300 being on the lower range, and 900 on the higher end. A good CIBIL score is one of the chief considerations for a personal loan, more sobecause personal loans are unsecured loans – no collateral is needed for these loans, so, it makes them riskier for lenders. A good credit score ensures that the borrower is trustworthy and responsible when it comes to personal loan repayment.
Before you apply for a personal loan, you can check your CIBIL score online to get a rough idea about whether your personal loan application will be approved or not. If you see that your CIBIL score is below 750, the likelihood that your personal loan application is rejected increases. Once rejected, it could further lower your CIBIL score. Therefore, always be very clear about your EMI payments and payment of credit card bills. If you always pay all your EMIs and credit card bills on time, you will be regarded as a trustworthy customer, and your CIBIL score will always be high. If your CIBIL score is high getting personal loans will be a cakewalk for you, provided you fit the eligibility criteria also, and you have all your documents in place. At Tata Capital, documentation is pretty simple so when you apply for a personal loan with a good CIBIL score, you can rest assured that your loan application will be accepted.
A few numbers can make a huge difference. A good CIBIL Score can help you overcome any difficulty that you may face due to lack of money. So, keep in mind to check your CIBIL score before you apply for a personal loan.