Many banks and non-bank financial companies offer unsecured personal loans, which means that you do not need to provide collateral to qualify for the loan. Lenders check your credit to approve your loan application. The creditworthiness of a loan applicant is determined based on the CIBIL score, which ranges between 300 and 900.
The Credit Information Bureau (India) Ltd or CIBIL, is the premier agency to provide credit reports and scores relating to individuals. A CIBIL score is a three-digit number, which reflects an individual’s creditworthiness and is useful when applying for a loan. A higher score indicates that you are financially able to repay the loan.
Therefore, a good CIBIL score helps you get a loan smoothly and even at lower interest rates. Also, if you have a high CIBIL score, you can get a loan for higher amounts.
How to check CIBIL score online?
There are many online portals available to check your CIBIL score for free or after taking out a subscription. Here’s how to do it via the official CIBIL website.
2nd step: Click on “Get your free CIBIL score” displayed on the homepage
Step 3: Next, provide your personal information such as your name, email id and create a password. You select proof of identity (passport number, PAN card, Aadhaar or voter card). Then you need to enter your PIN, date of birth and phone number
Step 4: After submitting all the details, click on ‘accept and continue’
Step 5: An OTP will be sent to the specified mobile number. Enter the OTP in the specified field and click ‘continue’
Step 6: A message will appear like “you have successfully registered”. Then click on go to dashboard
Step 7: Your CIBIL score will be displayed on the screen
It is advisable to click on the “No thanks” or “cross” button in the pop-ups that appear between the steps to avoid sharing your personal data with third parties.
What is a good CIBIL score to take out a personal loan?
A CIBIL score is provided in the range of 300 to 900. Thus, having a CIBIL score closer to 900 is ideal as it helps you get better deals on loans and credit cards. A CIBIL score of 750 to 850 and above is considered ideal and there is a higher chance that your loan application will be approved with the score in this range.
(Edited by : Sudarsanan Mani)