How bank process your Loans – Basic Information about CIBIL

If you want to know how know how banks process your process, then you should understand what is CIBIL and CIBIL Scores.

CIBIL

Credit Information Bureau (India) Limited, CIBIL is a Credit Information Company (CIC) founded in 2000 August. And it is the India’s first Credit Information Company. CIBIL collects and maintains records of an individual‘s payments pertaining to loans and credit cards. These records are submitted to CIBIL by banks and other lenders, on a monthly basis. This information is then used to create Credit Information Reports (CIR) and credit scores which are provided to lenders in order to help evaluate and approve loan applications.

What is CIBIL Score?

CIBIL issue three digit scoring for each individual based on the transaction updating with the banks, the score ranges from 300 – 900, it is indicating the credit worthiness of that individual person. According to CIBIL more than 90% of the loans are approved to whom the score is more than 700. Individual with credit background will have higher score. 

What is Loan Approval Process in regard with CIBIL?

CIBIL plays very very important role in loan approval process. Don’t thing if swiped credit card with some bank and not repaying for more than credit period, if you’re not repaying on time or not maintain proper transactions with banks. Your CIBIL score will go down and cannot get your future loans approved if your scores are less.

Do we have access for CIBIL score?

Yes, anybody can get the CIBIL scores by paying rupees 470. And you can get the score by applying through online. Its advisable before applying for any loans we can check our score and then we can proceed further.