Loans are borrowed to make life easier. Whether you are borrowing a Home Loan, Personal Loan, or Auto Loan.. However, getting a loan isn’t that easy as it seems. Whenever you apply for a loan, there are several things you need to take care of and one such thing which most you don’t know about is CIBIL Score. The CIBIL Score is a first impression which the lender gets,when you approach a bank or non-banking financial company. Read this article to know why CIBIL is important to your loan application.
What Bank Check When You Apply for a Loan?
- Lenders check your employment status to know whether you have a steady income or not
- Check your bank statements, salary slip, etc. to know how much you earn and what you spend.
- Credit history using CIBIL score to know what’s your track record with the previous loans
- Your chances of loan approval is dependent on your EMI/NMI ratio as well
How to Know the CIBIL Score?
It is easy for you to check your CIBIL score online without going anywhere. Just follow the steps to know what your score is.
- Visit CIBIL official website
- Click to ‘Get Your CIBIL’
- Choose a paid plan
- Create your CIBIL account
- Enter your personal information such as mobile number, email address, PAN details, etc.
- Enter the OTP and verify the details
- Create a username and password
- Do CIBIL login to find what your CIBIL score is
What Advantage Does CIBIL Provide?
- Free CIBIL score check for one-time
- Paid plans with features like credit monitoring, tailored loan offers and CIBIL alert
- Credit report for examination of the credit history of the individual
How Do I Know My CIBIL Score is Ideal or Not?
A CIBIL score ranges from 300 to 900. And if you do CIBIL login and find your score is 750 or above, you have an ideal CIBIL score. CIBIL below 750 indicates you have due or have not paid the previous loans on time. If your CIBIL is zero and credit history is ‘NA’ is because you haven’t borrowed a loan or credit card and your credit history is null.
Apart from an individual CIBIL score, there are other things which matter in a loan application such as loan eligibility criteria and more. You should also submit the basic KYC and income proof during the loan application such as.
- Identity Proof: Aadhar Card, Passport, Driving License, Voter ID Card, or PAN Card
- Address Proof: Aadhar Card, Passport, Driving License, Voter ID, or Utility Bills such as electricity or telephone bill
- Proof of Employment: Salary slip, Official ID card if you work in government sector, or original offer letter from the company
- Income Proof: Bank Statement, salary slip, Income Tax Return (ITR) report, Form 16
- Passport size photographs
So, if you are applying for a loan don’t forget to check the CIBIL score online. It is easy for anyone to check their CIBIL as it hardly takes 4 hours creating a CIBIL account. Once your CIBIL account was created you can do CIBIL login and know what your score is, after that you can apply for the loan without any risk of rejection due to poor CIBIL.