Your CIBIL score is one of the most important documents on your personal loan application. If you have a good CIBIL Score, the financial institutions might process your loan application faster.
At times, it can get difficult for a person with an average salary to manage his financial needs. We all know that financial emergency is unpredictable and can occur anytime. You might need funds urgently to finance your child’s education or to fund a medical emergency. And at such times arranging cash can get difficult.
When you are stuck in such a financial emergency and have no savings for backup, then the loan is the only option you are left with. People usually hesitate to borrow loans as they might get stuck with a huge debt. Sometimes, they take loans from their relatives or friends as they feel they might not face a huge debt. But you need to know that the situation is in fact totally reversed. If you are thinking of borrowing funds from your friends and relatives, then you are going to end up in a huge debt as repaying can get difficult. In such a case, looking upon financial institutions for financial help is an ideal option to stick with.
Many banks, as well as Non-Banking Financial Companies (NBFCs), offer you financial help in the form of a personal loan. Opting for a loan can be easier than borrowing funds from friends or relatives. Also, managing a personal loan is easy if you plan it out properly. If you are planning to apply for a personal loan then there are two ways: you can either opt for it online or visit the bank to complete the personal loan application process. Applying for a personal loan online can save your time.
When it comes to personal loan approval, it is important that financial institutions consider you eligible for a personal loan. The financial institutions take about 72 hours to process your personal loan application. But the approval of your personal loan is not always guaranteed. The financial institutions might even reject your personal loan application if they find something is not proper or the documents are missing from the application.
The financial institutions check for your eligibility before they apply for a personal loan. The financial institutions already have a set criteria and if you fit into this criteria, they will approve your loan application. The financial institutions check your employment history, your job stability, your financial stability, etc. before approving your personal loan application. Your credit score is one of the most important documents on your personal loan application.
CIBIL Score and Personal Loan:
A CIBIL score is a score given by Credit Information Bureau (India) Limited (CIBIL) which determines your eligibility based on your financial history. It is very important to earn a good credit rating as it helps you in getting your personal loan application processed smoothly.
When it comes to loans, it has been made mandatory by the Reserve Bank of India (RBI) for the lenders to check your CIBIL score before approving your personal loan application. Having a bad CIBIL score can affect your personal loan eligibility. Many banks might reject your personal loan application if you are having a low credit score. However, NBFCs are more flexible when it comes to credit scores.