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Minimum CIBIL score required for Personal Loan

Minimum CIBIL score required for Personal Loan

An Overview on CIBIL Score

CIBIL score is a 3-digit numeric summary of the credit information report and is based on past credit behavior and repayment history, credit mix, and credit inquiries. The higher your CIBIL score, the better are the chances of your loan getting approved.
 
Before offering personal loans, the majority of the lenders check the borrower’s monthly income and credit history. Since personal loans are unsecured loans, lenders particularly look at your repayment history and CIBIL score to avoid defaulters.
 
However, some lenders may consider your CIBIL score on your present repayment history. If you are a first-time personal loan applicant, only your monthly income and last 6 months of bank statement are deemed essential.
 
Hence, it is advisable to be vigilant about your CIBIL score regularly and ensure there are no errors and the overall report looks advantageous to the lender.

Why is a CIBIL score considered necessary for a Personal loan?

A personal loan is a collateral-free loan that does not require pledging any security against the loan, unlike a home loan. A personal loan is sanctioned after analyzing the credit score of the borrower. It is where the CIBIL score plays a vital role and is considered important for a personal loan. Transunion CIBIL Limited, earlier known as Credit Bureau of India, maintains a record of payments related to loans and credit cards.

How can borrowers improve CIBIL scores for personal loan approval?

If your CIBIL score happens to be low or zero, improving certain factors will help to get your loan approved:


Decent income -

With a stable income of at least 15,000 per month, salaried and self-employed individuals are eligible for a personal loan.
 

Consistent payment of taxes -

It gives a decent impression of your financial profile if you are paying the taxes regularly. Even if your CIBIL score happens to be minimum, the lender may approve the loan weighing your consistent payment patterns.
 

Lessen your loan amount -

In case your CIBIL score happens to be low, there is chance that you may be eligible for a slightly lesser loan amount. However, the rate of interest, in this case, maybe on the higher side.
 

Repay your debts on time -

Remember to repay all your EMIs as well as other obligatory bills or credit card bills on time to build a good CIBIL score. Most lenders facilitate automatic ECS so that the EMI amount gets automatically debited on a designated day of a month.  As a result, there are no missed payments and the minimum CIBIL score required for a personal loan remains undamaged.
 

How do you check your CIBIL Score?

 
You can check your CIBIL Score by visiting www.cibil.com and following the below mentioned simple steps:
 
  1. Enter your personal details like PAN card number, Date of birth, gender, etc.
  2. Complete the identity verification process
  3. Confirm the OTP sent on your smartphone or Email Id
  4. If the CIBIL score is checked more than once, you may have to make a fee payment to access the report
  5. Check for the best personal loan offers available for you.

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SimplyCash powered by Hero FinCorp is an instant personal loan app providing cash loans of upto INR 1,50,000 for both salaried and self-employed individuals. Driven by technology and fuelled by innovation, SimplyCash solves instant cash requirements of customers in just a few simple clicks without any physical documentation or meeting. The mobile app is available to users through all popular Android play stores like Google play store, Samsung store, Xiaomi store etc. With one of the most widespread presence, SimplyCash currently offers its services in over 90 major locations in India. Known for a seamless process, instant loan disbursal and transparent pricing - SimplyCash truly lives upto the expectations of being a 'Hero' product.  

Note: SimplyCash is a duly registered trademark and is a loan product offered, managed and operated by Hero FinCorp. Hero FinCorp Limited is a Non-Banking Financial Company registered under the provisions of Reserve Bank of India ("RBI") and is in the business of finance and lending.

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ICICI BANK LTD HDFC BANK LTD IDBI BANK STATE BANK OF INDIA PUNJAB NATIONAL BANK YES BANK INDUSIND BANK KOTAK MAHINDRA BANK LTD

IDFC FIRST BANK LTD AXIS BANK BANK OF BARODA TAMILNAD MERCANTILE BANK LTD INDIAN OVERSEAS BANK INDIAN BANK RBL BANK LTD DEUTSCHE BANK AG CITY UNION BANK LTD FEDERAL BANK SOUTH INDIAN BANK STANDARD CHARTERED BANK CANARA BANK KARNATAKA BANK LTD CITI BANK BANDHAN BANK UNION BANK OF INDIA DCB BANK LTD DBS BANK INDIA LTD THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD DEUTSCHE BANK UCO BANK

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