The effects of CIBIL score on your personal loans– the lender will check the database of all the loan applicants in the country with the assistance of the CIBIL (Credit Information Bureau of India) in terms of a parameter known as the CIBIL score which ranges between 100-1000.
If there is a default in your loan/credit history, your loan application is most likely to get rejected. Banks usually ask for a minimum CIBIL Score of 700.
For instance, if your Credit Score is 100 then your loan application is likely to get rejected. If your credit score is 800, then your loan application will be processed faster, and you will be rewarded with the lowest rates of interest.
One can easily Improve their Credit Score by paying all of the Loan EMI’s on time. All the pending bills and credit card payments also must be paid on time.