CIBIL Score: Do not take bad CIBIL lightly, you may incur a loss of ₹19 lakh on a home loan of ₹50 lakh, know-how..

Cibil Score Check: You must have often heard how important the CIBIL score is, but have you understood it? If your credit score is bad, then you may have to suffer a loss of Rs 19 lakh on a home loan of just Rs 50 lakh (Bad Cibil). That is why it is said that the CIBIL score should be kept good and it should not be allowed to deteriorate. Let us know its nuances and understand how it can be improved.

How much interest is in a CIBIL score of 820?

Suppose your CIBIL score is 820 and you take a home loan of Rs 50 lakh for 20 years and you get it at a rate of about 8.35 percent. In this way, you will pay a total of Rs 1.03 crore including interest of about 53 lakh in 20 years. Let us tell you that this interest can be different for different banks, but the calculation is being done by considering this figure for example.

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

On the other hand, if your CIBIL score is very low, say 580, then you will get the same loan at a rate of about 10.75 percent. In this way, you will have to pay an interest of Rs 71.82 lakh, which is about Rs 18.82 lakh more than before. That is, you can lose more than one-third of your total loan just because your CIBIL score is not good.

Know what is CIBIL score.

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 loan, credit card bills etc. If you keep paying all your loans and card bills, then your CIBIL score keeps improving, whereas if you default, 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 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 its loss. You have to face problems in all the 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 difficulty getting a loan from any bank, small finance bank, or NBFC. Banks fear that your CIBIL score is poor, which means you may default.

You will have to pay a higher interest rate.
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.
If the CIBIL score is poor, many times insurance companies may also ask for a higher premium from you. 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.

The problem in taking a home-car loan
Just like a personal loan, you may also have problems in taking a home loan or 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 the loan.

There may be a delay in getting the loan.
The bank which agrees to give you a loan will also check your 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, due to which there may be a delay in getting the loan.

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