According to RBI reports, July saw a month-to-month growth of 1.6% in the personal loan segment. Amidst an economic slump continuing since February 2019, several individuals have turned to personal loans to improve their purchasing power and address their monetary concerns.
Since this particular financing option has minimal requirements, the loan approval and disbursal process gets completed with a few steps. However, individuals are required to meet specific eligibility parameters to avail of a personal loan, and having a decent score is one of them. It is advisable to check credit score from time to time so that it becomes easier to obtain a loan during financial emergencies.
How to check the CIBIL score?
The 3-digit number signifies a borrower’s creditworthiness and the ability to pay back the obtained amount on time. Lenders check this score when you apply for financing options like personal loans. Here is how you can check CIBIL score online:
- Visit the CIBIL website and fill out a form with necessary details like name, contact number, email ID, etc.
- Also, make sure to include your PAN card details along with that.
- In the next step, you will be required to answer a few questions related to your loans and credit cards. Depending on your answers, the credit score gets calculated, and you will get complete information regarding your credit report.
It is important to read the credit report correctly to keep track of discrepant information if any.
Individuals should also know how the CIBIL score is important for personal lending since this is one of the necessary criteria they need to meet. Since it directly affects your personal loan application and sanctioning process, make sure to check the credit score before applying for the loan.
Also, certain factors influence your CIBIL score, such as:
- Delay in payments
Individuals need to make sure that there is no delay in paying the monthly installments, which directly affects the credit score. The ideal way to handle this issue is to keep a track of due dates and pay the bills on time.
- Closing cards with an outstanding balance
Having a decent CIBIL score for personal loans is the primary requirement one needs to meet. And, closing credit cards that have an outstanding balance immediately makes an impact on the credit score.
- Late fines and other charges
It is nearly impossible to improve your credit history and score if you cannot pay your bills on time. Lending institutions end up imposing additional charges and late fines once you miss the due date and that inevitably affects the CIBIL score.
There are certain things you can do to improve your personal credit score as that is required to get approval.
Top NBFCs like Bajaj Finserv have also introduced pre-approved personal loan offers to make the application process faster. These offers apply to several financial products like personal loans, business loans, credit cards, etc. You can quickly check your pre-approved offer with your mobile number and name.
Personal loans come in handy while struggling with a monetary crisis, as the requirements are relatively limited and interest rates are also moderate. However, it’s necessary to check the credit score every once in a while, so that it does not get too challenging to get personal loan approval during emergencies.