Know How To Check Your CIBIL Score Before Applying For A Personal Loan

 

India's consumer credit market has grown exponentially in recent years, and personal loan is one of the highest contributors to this growth. As per the reports of RBI, as of February 2020, this particular financial product occupied a majority of India's total credit book.

The lack of restriction on its usage and quick disbursal are some of the customer-friendly features that bolster the growth of this product. Nevertheless, before applying for it, individuals need to check CIBIL score for personal loans, along with some other pointers to avoid the chances of rejection.

What is CIBIL score?

CIBIL score is a metric, represented by a three-digit number, ranging from 300-900. It summarises an individual's creditworthiness, and rating agencies assign this number depending on an individual's credit repayment history.

Those with a higher credit score stand a better chance to gain quick approval for various financial products, avail better loan terms, alongside other facilities. When borrowers check CIBIL score for personal loans, they should ensure that their credit score should be at least 750 or higher to get their loan application approved without any hassle.

How to check CIBIL score online?

Checking the CIBIL score online is not a hassle anymore. Typically, financial institutions extend this facility to their customers without levying any charge. Here is a step-by-step guide to initiate the process –

1. Visit the official website of the lender of choice.

2. Enter the required details in their respective fields.

3. Verify these details with assistance from an OTP sent to the registered mobile number.

4. Get access to the CIBIL score.

Knowing the CIBIL score is a part of the personal loan application process. Borrowers need to consider other factors as well to make an informed decision.

Points to consider before making a personal loan application

• Interest rate

Since interest payment is a significant part of any debt, it is imperative to consider it before applying for one. In this regard, borrowers can compare personal loan interest rates from different lenders and make an informed decision.

• Associated costs

Be it an online personal loan, or any other mode of financing, they all impose some additional costs such as foreclosure charges, processing charges, etc. Failure to calculate them can increase the total cost of borrowing and the financial burden on individuals.

• Repayment options

Another vital point to evaluate here is the repayment options on offer. It eases the loan repayment process and allows individuals to pay conveniently. Therefore, before applying for a personal loan, one should opt for a lender offering this flexibility.

Individuals can also look for prepayment options extended by financial institutions. Under this facility, borrowers can make lump-sum payments to reduce their overall burden. Additionally, borrowers should know how to calculate personal loan EMIs to plan their prepayments accordingly.

• Availability of pre-approved offers

Pre-approved offers help to streamline the loan application process and save time. Prominent lenders like Bajaj Finserv extend this facility on financial products like personal loans, business loans, credit cards, etc. Individuals can check their pre-approved offer by submitting essential contact details.

Borrowers can check with their lenders beforehand about this particular offer and save valuable time.

Along with these pointers, individuals should also create a loan repayment plan to help them pay off the debt without any difficulty. They can use personal loan calculators available online for this purpose.

It is vital to check CIBIL score for personal loan before going ahead with the application process. Along with that, borrowers can also consider the additional points before signing a personal loan agreement to ensure that they are well-versed with the ensuing liabilities.