How Check My CIBIL Score
A CIBIL score is a 3-digit numerical number that represents the applicant repayment capacity. Scores range between 300 – 900, 300 being the lowest and 900 being the highest.
The CIBIL score is generated by the bureau after considering applicant detailed credit information.
Moreover, the agency also offers credit report services to the banks and other NBFCs.
CIBIL Scores are calculated on the basis of at least 6 months of financial record of applicant history. These data are fed into an algorithm with 258 different variables: each with a different weightage.
Why a Good CIBIL Score is Important for Loans
Typically, a CIBIL score ranges between 700 to 900 is considered to be good. This will be taken into account by lending institutions when evaluating a loan application for most retail loans, for example when it comes to a home loan or a vehicle loan.
A CIBIL sore also known as credit score which has several benefits during the loan application process such as:
- Quicker and faster loan application process
- Easier loan documentation process
- Lower interest rates on the loan
- A higher quantum of loan
- Longer or more flexible repayment tenure
Applicants will have the benefit of choosing multiple lenders, that enables them to select the loan that’s best for their needs and requirements.
In addition, higher score will lead to a quicker and easier documentation process. When it comes to a home loan, you can expect up to 80% of the total cost of the property if you have a CIBIL score between 700 and 900.