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Here Are Some Ways In Which Having A High Cibil Score Can Help You Get Cheaper Loans; Read On To Find Out More

Here Are Some Ways In Which Having A High Cibil Score Can Help You Get Cheaper Loans; Read On To Find Out More

In the majority of cases, loans are sanctioned to borrowers who have a CIBIL score of 750 or higher, which is about 79 percent

While the RBI’s Monetary Policy Committee (MPC) is raising the critical repo rate to control inflation in the country, loans for borrowers are also becoming more expensive.

As a result of the tight monetary policy regime, many banks have raised their interest rates on loans.

In spite of this, there is a way for borrowers to get relatively cheaper loans – a good CIBIL score.

Here Are Some Ways In Which Having A High Cibil Score Can Help You Get Cheaper Loans; Read On To Find Out More

A CIBIL score is an assessment of an individual’s creditworthiness. It gives a rating between 300 and 900 based on how well a person manages his or her credit discipline.

In general, the higher the score, the better it is. In general, if your credit score is above 750, then you are more likely to get loan approval with a higher probability.

A credit score is a measure of the individual’s creditworthiness and his or her credit history as a whole.

Here Are Some Ways In Which Having A High Cibil Score Can Help You Get Cheaper Loans; Read On To Find Out More

As well as that, the CIBIL report (which includes the CIBIL score as part of it) also reveals whether or not the person has ever defaulted on any repayment in the past.

CIBIL scores not only make it easier to get loans approved, but they also help the borrowers get loans at a lower interest rate.

The State Bank of India (SBI), for example, offers home loan rates based on the credit score of the borrower, for example, when it comes to home loans.

It provides regular home loans at an interest rate of 8.05 percent for those with a CIBIL score above 800, 8.15 percent for those with a score of 750-799, and 8.25 percent for those with a CIBIL score of 700-749.

A CIBIL score of 650-699 can get a home loan at 8.35 percent, while a score of 550-649 can get a home loan at 8.55 percent for people with a CIBIL score of 650-699.

There are several ways to ensure loan approval, which include having stable employment, earning viable income, prior credit history, your relationship with the bank, and most importantly, a high CIBIL score, which will allow you to get a loan more easily and effortlessly, according to CEO and co-founder of microlending platform SmartCoin Rohit Garg.

Approximately 79 percent of the loans are sanctioned to individuals with a CIBIL score of 750 and above, as reported by TransUnion CIBIL, according to a report by the company.

The applicant with a higher CIBIL score will not only find it easier to get loans than if they had a lower CIBIL score, but he will also be able to get loans at a relatively lower interest rate than if he had a lower CIBIL score.

How To Check CIBIL Score Online?

There is no charge for CIBIL to provide you with one report every year. It is possible to check that online. The following steps will guide you through the process of finding out your CIBIL score:

1) Go to the official CIBIL website https://www.cibil.com/

2) Select ‘Get your CIBIL Score’

3) Click on ‘Click here to get your free annual CIBIL score

4) Type in your name, e-mail ID, and password. Attach an ID proof (passport number, PAN card, Aadhaar, or Voter ID). Then enter your PIN code, date of birth, and also your phone number

5) Click on ‘accept and continue

6) You will get a one-time password (OTP) on your registered mobile number. Type in the OTP and select ‘Continue’

7) Select ‘go to dashboard’ and check your credit score

8) You will be redirected to the website, myscore.cibil.com

9) Click on ‘member login’ and once you log in, you can see your CIBIL score.

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