Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > How Does a CIBIL Score Impact Your Personal Loan Eligibility?

Personal Use Loan

How Does a CIBIL Score Impact Your Personal Loan Eligibility?

How Does a CIBIL Score Impact Your Personal Loan Eligibility?

Credit information company TransUnion CIBIL analyzes your activity relating to loans and credit cards and assigns a 3-digit number to summarize your credit history. This number, ranging from 300 to 900, is known as your CIBIL score. Whenever you apply for personal loan or any other loan, the lender checks your CIBIL score to decide whether to approve or deny your request. Hence, you must understand how your CIBIL score affects your personal loan eligibility. This will help you maintain a good score and access credit as and when you need it.

Additional Read – What is a CIBIL Score? Why is it important while applying for a loan? 

What is a low CIBIL score, and what is its significance?

Your credit score is a crucial factor that decides your eligibility for a personal loan. A CIBIL score close to 900 is considered high, and a number over 750 is deemed favorable. A high CIBIL score indicates long-term financial maturity and helps lenders be convinced you can repay a loan. A score below 600 is considered low and increases the probability of your loan application being rejected. 

How does a high CIBIL score impact your loan application?

Rapid approval: A high CIBIL score will establish your creditworthiness to potential lenders, resulting in faster processing of your application and a speedy disbursal of funds. 

Personal loan interest rates: If you have a low CIBIL score, lenders are more likely to ask for a steep interest rate. A high score will enable you to negotiate better terms.  

Amount of loan sanctioned: A good score reflects dependable credit behavior and will help you get a high loan amount.   

Why is a low CIBIL score a concern? 

A high credit score proves that you have handled your past credits responsibly, making payments on time. It assures prospective lenders that you are likely to repay your new loan promptly. This increases your likelihood of securing an instant personal loan. A low score, on the other hand, sounds alarm bells indicating that the odds of your defaulting are high. 

Here is a summary of the reasons behind a low score to help you understand why it negatively impacts your loan eligibility. 

Missed or delayed repayments: Inconsistency in paying your existing loan indicates an unstable financial position.  

Multiple loans: Having several loans points towards an elevated debt burden and, consequently, a reduced repayment capacity.

Frequent credit inquiries: It is a sign of being desperate for funds, which is a considerable risk factor. 

High credit utilization rate: If you use a high percentage of the credit that has been sanctioned to you, it can imply that you are not handling your finances responsibly. This could be a red flag on your personal loan application.

Inaccurate management of credit types: A lack of balance in the number of secured and unsecured loans in your portfolio is another cause of concern for your repayment ability.

Zero credit history: If you have no credit, then the credit bureau will have insufficient data to predict your repayment behavior, lowering your CIBIL score.

Additional Read – Top 4 Things You Should Know About CIBIL Score to Get a Personal Loan

Conclusion

With a high CIBIL score, you will be considered a reliable borrower and receive loans at favorable terms. Ensure you maintain a good score. If you are looking for quick access to finance, Tata Capital offers personal loans at flexible repayment schedules. Check your eligibility and apply for personal loan online today. 

Check Eligibility Now

Get an Instant Personal Loan for all your needs !

Apply now
Popular Searches
loan without cibil personal loan for 15000 salary Loan for ring small cash loan on aadhar card pre approved personal loan What To Buy On Dhanteras Personal loan when self employed how to increase cibil score form 15g for pf withdrawal how to download aadhar card
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.