Understanding CIBIL Score in India
In the year 2000, TransUnion CIBIL was incorporated as Credit Information Bureau of India Limited. This organization issues a score called a CIBIL score for a borrower. This score denotes the creditworthiness of the borrower and his ability to repay the loan on time. A person who has a good Credit Score has the ability to repay the loan with interest on the given time to the bank. A Score is a three-digit number calculated on the basis of the financial history of the applicant. It ranges from 300 to 900. The higher the score the better chance of your loan being approved. 79% of the loans approved are of those who have a score of 750 or more, says CIBIL’s analysis. Let’s understand CIBIL Score in India in deep.
The CIBIL score in India is based on several factors. Such as your payment history, types of credit and number of loan accounts, guarantors on the loan, credit history, opening and outstanding loan amount, and so on. Different financial institutions have different regulations and benchmarks with respect to a Credit score. A Credit score is like the first impression of the borrower for a financial institution. A person who manages his finances well will always have a higher CIBIL score. Lower Credit score signifies that the borrower has low creditworthiness and lenders refrain from giving loans to such applicants.
Advantages of a Good CIBIL Score in India
A high Credit Score leads to several advantages for a borrower. If you check your CIBIL Score Here are some key advantages of a good CIBIL Score:
1. Credit from Lenders
If an applicant has a good CIBIL score, he may get a loan from a financial institution with a lower interest rate and minimum documentation. However, if the CIBIL score of a candidate is low, the financial institution may reject his application for a loan or offer it at higher rates of interest.
2. Quick Approval
A high CIBIL score states that you have good creditworthiness. Also will repay your loan on time to the lender. Therefore, the financial institution will process your loan faster. The ones who have a low CIBIL Score may have to submit a number of documents and find guarantors making the loan disbursal process time-consuming.
3. Low-interest rate
Those who have a higher CIBIL Score, get a loan at a lower interest rate than the ones who have a lower CIBIL score. This is because when one has a higher CIBIL score, the banks trust the borrower more than the ones who have a low CIBIL Score.
4. More Negotiation
People who have a higher score, the financial institutions will grant loans to them quickly and at a low-interest rate. Therefore, they get more negotiation authority to negotiate with the banks for a lower interest rate.
5. Higher Limit Loans
With a good CIBIL score, you may get the loans to the upper limit. Therefore, you should definitely do your CIBIL report check.
6. Easy Approval for Leased Properties
A good credit score assist us to get easy approval for loans even for rented or leased properties. Like commercial complexes, apartments and so on.
7. Amazing Credit Card Offers
If you have a good CIBIL score, you may also enjoy credit card offers from various banks. These cards generally have higher limits, more privileges and amazing offers and cash backs.
Why Terkar Capital?
Terkar Capital is one of the leading financial firms in India. We provide various financial advisory and consulting services. Being one of the most modernized and highly specialized loan facilitators in India, we understand the requirement and the urgency of the funds required for your business. We have a team of trained executives who will help you from the process of application to the disbursement of the debt fund.
At Terkar Capital, we first analyze the case. We understand the expectation of the client and put the best resources in place to achieve the desired outcome for the client. Even after the disbursement of the loan, if the client faces any issues, we are happy to help until the end of the tenure of the loan. Once you give Terkar Capital the responsibility, you don’t need to worry!