What is CIBIL in Personal Loan?
A personal loan is a kind of loan provided by the bank to fulfill your personal needs. It comes in the category of medium-term or a short-term loan. The time for which the loan is provided is specified before sanctioning the loan. You have to pay back the amount of loan with some rate of interest within the prescribed time.
Furthermore, you can return the loan even before the tenure of the loan, this is known as pre-payment. Almost every bank provides you this facility of pre-payment. But before this process bank puts some checks on the age, income, and the credit history (CIBIL). Let us understand what is CIBIL in personal loans.
What is CIBIL?
First of all, it is important to know that CIBIL is India’s first credit information company. The full form of the CIBIL is Credit Information Bureau India Limited.
It maintains all the records of the credit cards and the loans of all customers in every banking and non-banking company. In this way, it is easy to keep the records of all the loans and other financial debts of customers.
What is a CIBIL Score?
CIBIL score is basically a parameter set by the CIBIL to measure the credit history of the customer. It lies between 300 to 900. The more the better.
If your CIBIL score is nearer to 900 or greater than 720 then you will easily get a personal loan. And if it is less than 620 then it is considered a bad credit score. You will have a problem in getting a personal loan then.
How your CIBIL gets bad?
If you have gotten any kind of personal loan and you haven’t paid it properly then your CIBIL score can affect badly. On the other hand, if you don’t pay your credit card bills properly then also your CIBIL score gets affected.