One of the most common term that one refers to while taking a loan from a financial institution is CIBIL. Credit Information Bureau (India) Limited (CIBIL) is a company in India which keeps a record of one’s credit information. Most of the Banks and Money Lenders refer to the credit score of the loan applicant for loan approval. Loans can be taken in many forms such as personal loan, Business Loan, Property loan etc. Marinating a positive and healthy credit score is one’s concern while taking a loan from the bank.
While taking a personal loan an individual has to know that CIBIL rates an individual on the basis of the repayment of the loan and all the dues paid on time, this is credit score and to get a personal loan approved one has to maintain a healthy CIBIL Score. The minimum CIBIL score for a personal loan is 750 and if the applicant has the credit score of 750 or above that, the individual is trustworthy for credit and the loan can be processed while doing so one should not fall in the negative scoring of CIBIL records.
These are the Major Problems that one has to keep in mind while getting a loan approved,
- Keep your information updated: Error in the CIBIL reports such as spelling errors in the name or address can lower a credit score of a person this can cause serious problems to a person’s loan status, so in order to keep a healthy score one has to keep his information and personal details updated and sometimes by doing so the applicant can also get +1 point helping him to maintain a healthy credit score.
- Keep a check on your CIBIL report: Major problems that can be faced while applying for a loan if there is an amount overdue error in a CIBIL report such an error can prevent a loan applicant from getting a loan from moneylenders and financial institutions, if there is an error it must be reported by the individual and corrections should be made.
To avoid such error which can cause inconvenience to the applicant the rate of interest set by the bank on the personal loans should be kept an eye on. The Personal loan rate of interest can be around 11.59% to 22.00% per annum. The rate of interest makes a difference in the repayment amount to bank and there are pre-payment charges as well if the loan amount is paid before the period this pre-payment charges can be around 5% which is to be paid if the loan is paid before time it can increase the credit score of an individual on the CIBIL report.
The payment of the loan can be managed if the applicant analyses the loan amount and manages the repayment of the loan with the help of a Personal Loan EMI Calculator. Many banks offer the Personal Loan Emi Calculator service at the bank or on their websites which can help to analyze the loan and the EMI can be decided on the parameters set by the banks and approved by the applicant these parameters are based on the eligibility of the applicant to repay the loan. This can make the repayment of the loan easy and if the loan is paid on time and without missing any dues the Credit Score of the Personal Loan of an individual might increase.