A personal loan is an unsecured loan given to a salaried person with a decent credit score. A credit score is thus an important determinant for any applicant for taking a loan. It defines your creditworthiness and helps us approve your loan application. We at Credy always want to help everyone in need of urgent funds with instant personal loans. However, your credit score is necessary for us to evaluate your value as a loanee. In general, any Indian citizen with a salary account is eligible for a personal loan instantly from Credy. You do not need to worry if you are not aware of your Credit Score. You can still send an application to us and we will get your score checked before approval anyway. If you in the past have paid your EMIs on time and never had a default, chances are your application will be approved instantly. Thus, it becomes very important for everyone to pay their EMIs and dues on time and maintain a good credit score. A good credit score not only makes the application process easy it will also allow us to approve a larger sum.
You might have come across the term CIBIL while applying for a loan online or with credit agencies. CIBIL is a credit bureau operating in India that collects and maintains credit files of over 600 million customers and 32 million businesses. It gives a three-digit score ranging from 300-900 to every customer based on their past activities and various other parameters. Every lender will have a check of your credit score from CIBIL or other popular agencies like Experian and Equifax. The CIBIL or credit score defines your lending abilities and credit activities. A good credit score will ensure your application is approved quick while a bad report can cancel your application. You can check your CIBIL score or credit report on our website or Android App to know your eligibility for a personal loan from Credy.
What is CIBIL Score?
CIBIL is one of the top credit bureaus in India which maintains a credit report of customers and gives a score from 300-900 to define their creditworthiness. Every customer has their report sent to the CIBIL bureau by lenders to curate a credit score to identify their lending ability. It assigns a score from 300 to 900 which varies depending on the agencies. There are various agencies operating in India like Experian and Equifax. The score is an identification of the ability of a customer to take a loan and repay them.
Credit scores or CIBIL scores are based on your past activities and credit behavior with other lenders. Every lender is bound to share a detailed report of a customer about his payment frequency, repayment behavior, late payment if any, etc. Based on it CIBIL determines a score that acts as an identification for every person who has taken a loan in his life or first-time loanee. Lenders will check your CIBIL score to approve your application and while taking into account other aspects as well. You can not directly alter a CIBIL score but a good credit history with the timely payment of EMIs and no default will make it easier for you to secure a personal loan. You can obtain a detailed report about your credits including your Credit Cards, loans, EMIs, etc. to get an idea about your eligibility to get a loan. Every loan will require your lender to have a background check of your CIBIL score before granting a loan. To ensure your loan application has the best chance of approval, maintaining a good credit score is ideal. Lenders make the CIBIL score analysis to ensure that you have a minimal chance for a bad loan. If your CIBIL score is low, most lenders will be reluctant to give you a loan for the fear of a bad loan. However, Lenders do have their own policies while accepting a loan application, CIBIL score always is the first step to judge an application for a loan.
Why does CIBIL Score Matter?
CIBIL score does matter, as most if not all lenders will determine you as a good loan if you have a good credit score. Most financial institutions will reject an application with a low CIBIL score to avoid a bad loan in their books. A bad loan is a loan that is written off or not repaid by the loanee. It is thus a loss for the financial institution and involves risks for the lenders to provide a loan to such a customer with a bad credit report.
If you apply for a personal loan today, it is most likely that the lender will check your credit score before approving your application. It is generally the first step of rejection for most applications received by a lender. A bad score is mostly the first reason for a loan application to get rejected by the lender. It is not the only factor that determines a loan application is to be approved or rejected but a red sign for any lender.
A CIBIL score is probably the most important factor while applying for a loan with most major lenders and banks in the country. Some online lenders like Credy will, however, look at other factors to determine your eligibility for a loan but most banks will straightaway reject a low score. We at Credy have a range of factors in addition to your credit score that is taken into account before we approve a loan application. This does not mean that every low credit score application is approved for a personal loan. Most of them will be rejected based on their credit report. Thus, good credit behavior is of utmost importance for your loan application to be approved instantly with most lenders in the country.
Can you get a loan without knowing your CIBIL Score from Credy?
It may be your first time applying for a personal loan or simply unaware of your credit score. You can still apply for a personal loan on Credy’s website or Android app online. Your application will not be rejected if you do not know your credit score. After you submit your application our team will verify your credit score and pull up a credit report from the credit bureau and ensure that you can get a loan if your score is healthy.
It is not essential to know your CIBIL score but the utmost necessity to have a good credit record and past credit history. You should be paying off your debts on time and never delay paying your EMIs. If your credit history is positive, you are more likely to get your loan application approved without any hassle quick and easy. Even if you are not aware of your credit score, we are able to get your score directly from the bureau for authenticity. Thus, you are not required to worry about your credit score if you have always paid your debts on time. You are more likely to get a loan from Credy with a good credit score.
Benefits of a Good CIBIL Score
If you have a good CIBIL score you have a priority while applying for a loan along with higher approval chances in the midst of the applications. A lender will always approve a loan application quicker that has a very high credit score. In addition to it, you are more likely to get a higher loan amount approved. You can also enjoy the benefits of low-interest rates especially for personal loans which have a variable interest rate. Here are some benefits that will surely make you actively try to maintain a good credit score.
- Quick approval of loan application: having a good credit score will make lenders feel confident in you while giving a loan. Additionally, your application will be prioritized among others if you have a high CIBIL score. When an application is sent to a lender, they look at your credit score first. A lender will proceed with your application if your credit score is satisfactory. If you have other issues in your application but a good credit score, your application is more likely to be considered rather than rejecting straightaway.
- Low interest rates: lenders are more than happy to charge lower interest rates from people with high credit scores. This is because a good credit score indicates confidence that the loanee is more likely to pay his dues on time and not be a defaulter. Having a high CIBIL score will give you the confidence to bargain with the lender for a better interest rate. This is very helpful in terms of personal loans which have a variable interest rate. Your high score can help you get a personal loan on lower interest rates compared to ones having a low or bad credit score.
- Higher loan amount: a high credit score indicates the good credit behavior of a customer. This gives confidence to the lenders to approve higher loan amounts as you are more likely to pay your debts on time as shown in your credit report. Your credit report will indicate your timely payments. It allows lenders to feel more confident in lending higher sums of money based on your credit score. So, if you are looking to acquire a large sum of money as a loan. you should maintain a high credit score to allow banks and financial institutions to feel confident in lending large sums to you.
What if you have low cibil score?
If you have a low CIBIL score, you may have trouble in getting loans from banks. However, the good news is that you can improve your credit score. Credy offers Scofit which helps you improve your credit score via personalized tips. You get quarterly credit reports, detailed view into what is affecting your credit score, and tips to improve the score.
Personal Loan for CIBIL Defaulters
CIBIL defaulters are the main reason for a loan application to be rejected by banks and other financial institutions. A person becomes a CIBIL defaulter, when he delays his EMI payments or does not pay his debts, or have too many loans on his name at one time. All these factors can lead to a CIBIL defaulter or low CIBIL score. CIBIL defaulters are a red flag for any lender and they are more likely to reject a loan application straightaway of a CIBIL defaulter. Such people are considered irresponsible and not creditworthy of a loan. Most lenders if not all will be reluctant to give a loan to a person who is has been a CIBIL defaulter in the past. Thus you need to be very careful while taking a loan and ensure you pay EMIs on time to avoid being a defaulter.
In most cases, your loan application will be rejected if you have been a CIBIL defaulter by most lenders in the country. However, you can still secure a loan being a CIBIL defaulter, but it won’t be an easy task. You need to have other documents to support your application which can provide confidence to the lender that you can repay the loan in time. The process is not quick or instant and will require a lot more documentation and verification to finally secure a loan.
We at Credy, do a thorough assessment of the loan applicant’s profile which includes spending patterns, recent payment discipline, home ownership type, the stability of income, etc. Our technologically efficient process carefully evaluates the eligibility for a loan by checking several parameters and not just the factor of having a low CIBIL score, unlike other lenders or banks. Thus, you may get a loan from Credy despite having defaulted on loans or EMIs in the past. However, it is advisable to maintain a good credit report along with no or fewer defaults in your credit profile for a smooth lending process.
We can confidently say that a CIBIL score is one of the most important, if not the most important determinant in any credit situation. A credit score is the first impression of an individual for a lender and it will determine the process and loan amount that can be approved. To ensure you get instant approval of your loan application and can get a higher sum with low-interest rates, a high CIBIL score is ideal. It is recommended for every individual to have a regular check of your CIBIL score and ensure you pay off your debts and EMIs on time.