How to Track Personal Loan Application Status Online?
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When you apply for a loan, you must fulfil the lender’s minimum CIBIL score requirement. You can easily check your CIBIL score online by using your PAN number. However, before that, you must know what is CIBIL score, its full form, and why it holds so much importance for your loan application. The full form of CIBIL is Credit Information Bureau (India) Limited, the top credit bureau of India evaluating the credit behaviour of each Indian credit user. Let's learn more about the CIBIL meaning, what is the CIBIL score limit, and its impact on your loan eligibility.
CIBIL score is a 3-digit number ranging from 300 to 900. This numerical represents your credit history based on how you have handled credit in the past. The more responsibly you behave and repay your lenders on time, the higher the CIBIL rating you can build.
Whenever you apply for new credit, the finance company checks your credit report and evaluates your credit history to determine your creditworthiness. Your average credit score is based on your repayment history, portfolio diversity, credit age, outstanding balance, current accounts, etc.
Credit score ratings range from 300 to 900. The minimum CIBIL score limit is 300, and the maximum is 900. Lending institutions set CIBIL score limits based on their eligibility requirement. For instance, some loan providers set the minimum CIBIL score limit at 750, which means they only accept applications from loan seekers with a CIBIL score of at least 750. However, if your average credit score is low, you can still apply for a loan if you can prove a good income, a stable job, and a high repayment capacity.
In short, know the real CIBIL score meaning and its impact on your creditworthiness before applying for a loan.
CIBIL calculates credit score ratings based on your creditworthiness and past credit behaviour. It has unique statistical algorithms to calculate the CIBIL rating using the following steps:
Just like individuals can check their CIBIL scores online, business owners can check their business credit scores online. CIBIL provides one credit report a year for free. You must pay or subscribe to their one, six, or twelve-month plans to get regular reports. These are the steps to check your CIBIL score online:
Also Read: What is CIBIL Report - CIBIL Meaning and Calculation
Various CIBIL rating ranges defining the levels of your creditworthiness are as follows:
CIBIL Score | Implication | Effect on Loan Eligibility |
750-900 | Excellent score | Highest chances of loan approval |
700-740 | Good score | Good chances of approval |
650-699 | Fair score, lenders may conduct additional queries and formalities | Possible chances of approval |
600-649 | Average score, makes lenders doubtful | Difficult chances of approval |
Less than 600 | Poor score, needs attention | Low chances of approval |
A credit score between 650 and 699 is considered an average score. While most lending institutions have a minimum credit score limit of 750 or above, they may accept applications from individuals with an average credit score. However, such borrowers must prove income regularity and professional stability. Since loan providers charge the lowest interest rates from high-score borrowers, those with an average credit score may pay a higher interest rate on their loans.
Both credit history and credit report are different aspects in terms of credit. Let’s see what they are:
CIBIL uses several important factors to create your CIBIL report and calculate credit score ratings. These include the following:
It's essential to know your CIBIL score before applying for a loan. When you apply for a Personal Loan online, lending institutions check your individual or business credit score to measure your creditworthiness. The credit score scale is important to apply for a loan due to various reasons, including the following:
Now that you know everything about CIBIL score limit and implications, handle your financial activities smartly and ensure a consistent repayment history. Try keeping your CIBIL rating high to access funds easily on your terms. Considering your financial profile and CIBIL score, Hero FinCorp can offer the best financial products when you apply for a Personal Loan online. Also, remember to check your credit score online regularly to stay on track and act accordingly.
CIBIL is the oldest credit bureau monitoring the credit activities of Indian individuals. The full form of CIBIL is Credit Information Bureau (India) Limited.
What does a 700 CIBIL score mean?A 700 CIBIL score is good for obtaining loans from most lending institutions. However, the lender may demand additional documents or formalities to approve such loans.
What are the CIBIL score benefits?A high CIBIL rating helps get easy loan approvals at competitive interest rates and favourable terms and conditions. Check it regularly to act on time and maintain it at a high level.
What's a good average credit score?600-649 is a good average credit score that may attract loan approval but at a higher interest rate. Maintain it above 750 to get a loan with the best terms.
How can I boost my credit score in 30 days?Increasing the credit score takes time. However, rectifying any mistakes in the credit report, paying off outstanding balances, and reducing your DTI and CUR are the best ways to boost your credit score in 30 days.
Why is a good Commercial CIBIL Score important for a business?
A good Commercial CIBIL Score helps a business secure loans and credit lines with favorable terms, lower interest rates, and higher approval chances.
The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.
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