If you’re living at the center of Pune and not fully aware about the Credit Information Bureau India Limited (CIBIL) score and its significance in having an instant personal loan. It is considered to be one of the best parameters for credit standing of the individual. CIBIL score or the credit score is one of the most important eligibility criteria for personal loan approval and disbursal. It is an essential for financial institutions to evaluate the capacity to manage timely payback of the loan installments.
Pune is a growing industrial and the urban hub. Many aspirants choose Pune for their commercial venture or newest job opportunity. Personal loan in Pune being unsecure requires no guarantee or security to lock the loan amount. This is the reason why they charge more as high interests based on the past record of the borrower.
What is the required CIBIL Score for a Personal Loan in Pune?
The credit score essentially falls within a good range of 300 to 900. Individuals with a credit score on the higher side have better chances for a quick approval. What does that mean actually? It means that an individual’s loan application will be approved faster if it is above 750 or more.
We people are not programmed to check our credit scores beforehand. We ignore the importance of credit scores while it’s so potent to have it handy whether online or offline. A poor repayment history, bad debts, or a defaulted loan can remarkably affect the credit score. This way borrowers go crazy at the time of loan rejections. We know that a lower credit score can increase the risk of default and on the other hand, a high credit score reduces the risk of non-repayment.
Does the Credit Score Matter, living in Pune?
For all unsecure types of loan, the credit score plays an inevitable role. One can easily check the CIBIL score, sitting at the comfort of their house. So, if your CIBIL score is:
· 300-599: When you fall into this bracket of credit score, the chances are bleak. A low credit score implies that the lending institutions are under-confident to lend cash. Its recommended to take quick remedial action and improve your credit score.
· 600-749: This is an average range of credit score and it does not matter much if viewed from the lending institutions perspective. You may get approved with a higher rate of interest, with the expectation that your credit score will eventually improve. Also, the lender may decide to provide a lower amount as compared to the filled up application.
· 750-900: With a score falling into this category will be welcomed with open arms. You may choose a credit amount lower or higher than planned. In addition, a high credit score ensures benefits like low-interest rates, fast approval, and quick loan disbursal. It becomes much easier to bargain for a higher loan amount.
Read More: Credit Score – Facts & Myths
How Do Lenders find out your Credit Score?
CIBIL keeps a regular track of all credit activities of an individual, be it salaried or self-employed. Timely updates like EMIs payments, outstanding balance, credit card debt, new loan applications, choice of loan tenure are constantly sent to CIBIL. And ultimately CIBIL examines your credit score basis the information received.
Basically, there’s nothing called a minimum credit score. The minimum depends on several important aspects of the prospective borrower.