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Relevance of CIBIL score in Loan eligibility

Date: 06 Feb 2016   Posted By: ishita     Group: Finance and Investments    Category: Banking   

How does CIBIL credit score affects your loan eligibility? Is it important to have a good CIBIL score?
I am a salaried employee and am looking for a loan. So will it matter if I don't have any credit history till now?
Awaiting advice from experts.

Searching for information about loan eligibility? Wondering how CIBIL score affects loan eligibility? Check out responses from experts on this page.

Author: rahul    08 Feb 2016      Member Level: Gold     Points : 2    Voting Score: 0

CIBIL credit is very important in getting you a good loan. A CIBIL score of more than 750 helps in getting you a loan much easily.

Author: Bhuvaneswara Rao Nalla    08 Feb 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

You will have CIBIL credit score even if you have a credit card with you. CIBIL calculates credit score based on personal loan, motor vehicle loan, credit cards, home loans, etc. So, you will have CIBIL score if you have availed any of the above loans or credit cards. Otherwise, you won't be having any CIBIL score. In that case, banks may take other parameters into consideration while sanctioning loan to you. CIBIL provides scores between 300 and 900. If you have any score that is less than 750, there is high chance of rejecting your loan application form. Once a loan application is rejected, your score will decrease further.

Author: [Anonymous]    08 Feb 2016      Member Level: Diamond     Points : 2  (Rs 2)    Voting Score: 0

A person who has applied and even had loans in earlier times will be having CIBIL scores.
CIBIL scores are decided depending upon the repay schedule one has followed.
The faster the repayment, the good is CIBIL score.
If a person is applying for loan for the first time, he or she will not be having any CIBIL score, and that case, bank will consider your job, salary, company profile, family back ground, your qualification, etc.

Author: Mahesh    08 Feb 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

For salaried employees the CIBIL score is like benchmark for getting loan. Most of the salaried people have specific route through which they handle the personal finance. In such case the CIBIL like organization gives them the insight on how much they fare for paying back the loan. And the score from CIBIL gets the person to have less documentation and collateral from the bank. So banks rely on such benchmarks. There are few other restrictions too but these days most of the banks prefer relying on the benchmark.

Author: Sheo Shankar Jha    09 Feb 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

Banks are interested to get back their entire amount of money - the Principal and the Interest without any hurdle from the loanee and CIBIL forms the basis of sanctioning loan.
A good CBIL score indicates the rapport of the loanee in terms of payment of loan coupled with interest in a hassle free manner and a score beyond 750 is desirable in order to get a loan sactioned. Any loan previously taken by the Bank would indicate his CBIL score, faster is the repayment in terms of Principal and Interest, higher is the CBIL rating.
In case, one is applying for a loan for the first time, the Bank would see the other angles prior to sanctioning of loans such as the organisation where the employee is working, the reliability of the organisation, status of education and his grade within the organisation etc.

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