How CIBIL Score Impacts Loan Eligibility?
CIBIL score, issued by Credit Information Bureau (India) Limited, is a consolidated health score of an individual’s banking relationship across all Banks/NBFCs.
CIBIL score ranges between 300 to 900 & a minimum score requirement, considered by most lenders, is 700. CIBIL score talks of the credit history across all loans products, Credit cards, Personal, Overdraft, etc.,
CIBIL takes many factors into account, such as repayment history, cheque bounces, over dues, limit available vs utilized, etc.,
Most banks and NBFCs participate in CIBIL, which means they enquire with CIBIL on the score before underwriting a loan as well as periodically update their loan portfolio with CIBIL @ individual customer level history.
How can I increase my CIBIL score: