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That’s why the bank refuses to give loans, know everything about CIBIL SCORE

Despite having a hefty salary, the bank refuses to give loans to many customers. On asking the reason, it is with the bank that your CIBIL score is not good or it is negative. Even before issuing the credit card, the bank checks the CIBIL score of the customers. 

In fact, in this world of digital transactions, all kinds of facilities are now available online. All the transactions you do with the bank are seen while taking the loan. Often the bank offers the loan to the customer only on the basis of the credit score. If your CIBIL score is good, then banks will not hesitate to give you a loan. 

When you apply for a loan in banks, the banks check your credit history whether you have ever taken a loan before or not, if you had taken the loan, then paid it on time or not. The bank comes to know through the CIBIL score that you have made any mistake in the past, only then the bank refuses to give the loan 

Due to poor CIBIL score,

people often do not take loans and make payments on time. Late payment of EMI, non-payment of the credit card on time, such steps adversely affect the CIBIL score. 

Apart from this, too much inquiry about the loan also has a negative effect on the CIBIL score, because all the banks you approach will check the CIBIL score. Due to frequent CIBIL checks, it has a negative effect.  

The better your credit score will be. There will be more chances of getting your loan from banks. Therefore, efforts should be made that the CIBIL score should not be below 750. Apart from this, if the CIBIL score is good, one gets the loan at low interest. 

Read More: Saral Pension Yojana: Not at 60, Get a pension even at the age of 40, LIC has come up with an enormous plan

How to Improve CIBIL Score In

one line, pay any type of loan on time. Keep a balance between home loan, auto loan, personal loan, and credit card usage. Too much reliance on one type of credit can ruin your score.  

Where to find out: What is

your credit score. You can easily find this out in a few seconds. In this, you can take the help of the State Bank of India. For this, you have to go to Fill in personal details here. PAN number or any identity card details will have to be given here. You will also have to enter your mobile number and email id here. As soon as you give all these details, you will get an OTP on the mobile number. After entering this OTP, your credit score will be shown in front of you. 

Credit score or CIBIL score is a 3-digit number. It can be between 300 and 900. If the CIBIL score is close to 900 then it is considered to be the best. That is, the more, the better. On this basis, the bank decides how much loan should be given to the customer. About 79 percent of the loans are given with a CIBIL score of more than 750. 

Rating means

If a customer has a CIBIL score between 300 and 550, then it is considered poor, and the bank refuses to give direct loans to such customers. If the CIBIL score is between 550 to 650, it is considered average. In such a situation, the bank can also refuse to give a higher interest rate or loan. On the other hand, if it is between 650 to 750 then it is considered good and the bank will consider the loan. Whereas if the customer’s CIBIL score is between 750-900, then the bank will offer the loan at the lowest interest rate without delay. 



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