Top News

Cibil Score Check: CIBIL score is an important measure of your financial health. If your CIBIL score is poor, banks give you loans at higher interest rates, or may not give loans at all. Therefore, it is very important to maintain a good CIBIL score (cibil score kitna hona chahiye) so that you can easily get a loan at a low interest rate and save lakhs of rupees.

That is why it is said that the CIBIL score should be maintained well and should not be allowed to deteriorate. Let us know its nuances in the news below and understand how it can be improved.

How much interest on a CIBIL score of 820?

With the highest CIBIL score (820), you can get a home loan of Rs 50 lakh at an interest rate of about 8.35 percent for 20 years. According to this, you will pay a total of Rs 1.03 crore in 20 years, which includes about Rs 53 lakh as interest. Interest rates may vary among banks.

If your score is 580, you will pay 19 lakhs more!

If you have a low CIBIL score (like 580), you will get a home loan at a higher interest rate. For example, at the rate of 10.75%, you will have to pay interest of ₹71.82 lakh, which is ₹18.82 lakh more than a person with a good CIBIL score. Due to a bad CIBIL score, you may suffer an additional loss of more than one-third of your total loan.

Know what the CIBIL score is-

It is a three-digit number, or say a score. Its range is from 300 to 900 points. It shows your loan eligibility. This number is decided on the basis of your old loans, credit card bills, etc. If you keep paying all your loans and card bills, then your CIBIL score keeps improving, whereas if you default on anything, then your CIBIL score keeps deteriorating.

What are the benefits of a good CIBIL score?

If your CIBIL score is good, then it has many benefits. Every bank checks the CIBIL score of a person before giving a loan. In such a situation, you can get a loan easily and cheaply. You can even get a pre-approved loan offer many times, and you can also get the facility of an instant loan, i.e., money coming into the account in a few minutes.

5 disadvantages of a bad CIBIL score-

If the CIBIL score is bad, then you also have to bear the loss. You have to face problems in all work related to the bank. Let us know the 5 disadvantages of a bad CIBIL score, which will have a big impact on you.

There will be difficulty in getting a loan-

If your CIBIL score is bad, then you will have trouble getting a loan from any bank, small finance bank, or NBFC. Banks fear that your CIBIL score is bad, that is, you can default.

You will have to pay a higher interest rate-

Even if some banks agree to give you a loan despite a poor CIBIL score, they will charge a higher interest rate. They try to manage their risk. They think that even if the person defaults on the last few EMIs, the bank should not suffer a loss, so the interest rate is kept high.

You may have to pay a higher premium-

Many times, insurance companies can also ask for a higher premium from you when the CIBIL score is poor. Actually, in such a situation, insurance companies feel that you can make more claims, so they can ask for a higher premium. Many companies may even refuse to give insurance.

Difficulty in taking a home-car loan-

Just like a personal loan, you may also have problems taking a home loan or a car loan. You may even have to pay higher interest. There is also a problem in taking property on lease for business. The company may also ask you to mortgage something in exchange for giving you a loan.

There may be a delay in getting the loan-

The bank that agrees to give you a loan will also check the documents thoroughly before giving you the loan. Even if you apply for a gold loan or securities loan, there will be a thorough investigation. Even if you mortgage something, the bank will look at you with suspicion and will do a thorough investigation. All this can take a lot of time, which can lead to a delay in getting the loan.

How does the CIBIL score deteriorate?

There can be many reasons for a deteriorating CIBIL score, such as not paying EMI on time after taking a loan, settling the loan, not paying the credit card on time, not maintaining the credit utilization ratio, etc. Apart from this, if you have taken a joint loan or you are a loan guarantor for someone, and in such a case, your joint account holder or the borrower for whose loan you are the guarantor makes a mistake, then it also has a bad effect on your CIBIL.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.