Cibil score for BankLoan
TransUnion CIBIL, one of India’s top four credit rating agencies, works with nearly every other bank in the country to assess the creditworthiness of millions of businesses and individuals. A high CIBIL score indicates that a person has a strong sense of financial responsibility and integrity. When a person applies for a credit card or a loan, their most recent CIBIL rating is reviewed. A score above 700 is typically considered good.
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| CIBIL Score | Meaning |
|---|---|
| 850 – 900 | Indicates that one has never defaulted on a payment and has an exceptional score. |
| 750 – 850 | 80% of loans are authorized for persons with credit scores above 750. This allows them to haggle for a lower interest rate on credit cards and personal loans. |
| 700 – 750 | This shows that the person is eligible for secured loans. However, for an unsecured loan, the bank may charge a higher interest rate or do more investigations. |
| 500 – 700 | This shows that a person has failed to make payments on several occasions. Personal loans would be difficult to secure, and a private lender may charge exorbitant rates. |
| 300 – 500 | This is considered a low grade and implies too many disparities in loan repayments to ignore. Unless the individual strives to improve their credit score, it will be nearly impossible to receive credit from any bank in the country. |