CIBIL Score: Want to take a loan of ₹ 1 lakh? Know what the minimum CIBIL loan amount..

Everyone needs a personal loan at some point or the other. But whenever it comes to loans, the first question that arises is What is your CIBIL score. Let us know what the minimum CIBIL score is if you want a personal loan of Rs 1 lakh.

How much should CIBIL be?

According to the website of Axis Bank, if you want a personal loan of Rs 1 lakh, then your CIBIL score should be between 720-750. At the same time, some banks and lenders give loans even on a CIBIL score of up to 700. At the same time, if your CIBIL score is less than this, then you may have trouble getting a loan.

What to do if you have a bad credit score?

If your credit score is also very low, but you want to take a credit card or personal loan, then you have some ways can get your work done. Even if your credit score is very bad or even zero, you can easily get a personal loan.

Take a secure personal loan.
If you take a secured personal loan, you can get it even with a low credit score. This is because, in this case, the bank has a guarantee to recover its money. Let us tell you that in this case, you have to mortgage something as security. If you want, you can take a credit card or personal loan against your FD.

Show financial stability to banks.
If your financial condition is good, but your CIBIL score is poor, then you can show your financial condition by showing your salary slip, income tax return, and other documents. As soon as the bank is convinced that you can repay their money, they will immediately give you a personal loan.

What is CIBIL, and how does it become bad?
This is a three-digit number, or say a score. Its range is from 300 to 900 points. It shows your eligibility to take a loan. This number is decided based on 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. Let us know 7 reasons due to which the CIBIL score gets spoiled.

1- Missing an EMI
If you already have a loan running and you miss an EMI on it, then it has a direct impact on your CIBIL. This reduces the CIBIL score. If you miss too many EMIs or default on the loan, then your CIBIL will become so bad that no bank will give you a loan. Every bank will fear that you will not repay its loan, due to which it may suffer a loss.

2- Due to taking a big loan
If you have taken a big loan, then this also affects your CIBIL. This shows that you already have a lot of debt, which is yet to be repaid. In such a situation, if the bank gives you more loan, then you may not be able to repay it. This is the reason why people's CIBIL score goes down after taking a home loan.

3- Do not apply for a loan again and again

Many times, a person applies to different banks to get a loan and takes the loan from the bank from which he gets a loan at a lower interest rate. Keep in mind, if you have applied for a loan at many banks, then your CIBIL score will be checked by each bank, and this happens under a hard inquiry. When a bank or NBFC checks your credit score, it is called a hard inquiry. Whereas when you check CIBIL online yourself, it is called a soft inquiry. Your CIBIL score starts decreasing due to a hard inquiry.

4- Making big or excessive purchases with a credit card

If you make a big purchase or make a lot of purchases with a credit card, then it affects the CIBIL score. This increases the utilization ratio of your credit card, which reduces your CIBIL score. You should use less than 30% of your credit card limit for shopping, otherwise, your CIBIL score may deteriorate.

5- Credit card inquiry
If you apply for a credit card repeatedly, then this also affects your CIBIL. It is just like when you apply for a loan, then CIBIL gets affected. This is because, in this also there is a hard inquiry, due to which CIBIL decreases. However, this is temporary and in some time the CIBIL becomes fine again.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.