For a refresher on the CIBIL score, click here.
The CIBIL score is one of the major factors evaluated in the loan application process. Often the first thing loan officers look at when assessing a candidate’s creditworthiness, CIBIL scores are especially relevant in unsecured lines of credit such as personal loans that do not require collateral. The higher your CIBIL score, the higher your chances are of getting your loan application approved. Higher CIBIL scores can potentially result in better loan terms such as lower interest rates and higher credit limits.
“79% of loans are approved for individuals with high CIBIL score.” - CIBIL TransUnion
Along with the CIBIL score, banks & NBFCs evaluate other factors to assess a candidate’s creditworthiness. These factors include: employment status, account details, payment history, and EMI to income ratio. Proof of identity, address, employment and income are also basic requirements of the loan application process. While eligibility criteria and loan application processes differ across lenders and borrowers, these are a few of the basic factors and requirements as stated by CIBIL.
Beyond loan applications, your CIBIL score is representative of your overall credit profile and financial health. To learn more about improving your CIBIL score? Click here!