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CIBIL Score Tips: How much interest will the bank charge if the CIBIL score is low, know important things before taking a loan..

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We all know how important it is to have a good CIBIL score to get a loan. In today's time, most people fulfill their needs by taking a loan. While taking a loan, banks determine whether you should be given a loan or not only after looking at your CIBIL score. If you have to give a loan, then what interest rates should be charged?

Let us tell you that the CIBIL score is between 300 to 900. CIBIL score is also called a credit score. The higher the credit score, the more reliable the bank considers you to be a customer. In such a situation, the loan is easily available and comes with a low interest rate. On the other hand, if the CIBIL score is low, then it becomes difficult to get a loan and even if you get it, the interest rate is very high. Let us tell you that if you take a home loan or any other home-related loan from the State Bank (SBI Home Loan), then how much CIBIL score can you get a loan at how expensive or cheap interest?

How is the credit score decided?
Many factors work to decide the credit score like loan repayment history, credit history, credit utilization ratio credit mix, etc. Apart from these, your CIBIL score is calculated from some other things like wrong information in your credit report, you have ever done a loan settlement before, you are a guarantor of someone's loan and it is not being paid, etc. All these also affect your CIBIL score and this can spoil your score.

Who prepares the CIBIL score?
Many credit bureaus issue the CIBIL score. Among these, credit information companies like TransUnion CIBIL, Equifax, Experian, and CRIF Highmark are considered to be the major ones. These companies are licensed to collect financial records of people, maintain them, and generate credit reports/credit scores based on this data. These credit bureaus evaluate the customer data deposited with banks and other financial institutions such as outstanding loan amounts, repayment records, applications for new loan/credit cards, and other credit-related information etc., and prepare the CIBIL score based on that.

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