Financial needs can knock at any time. Be it home repair or any medical emergency, when there is a sudden need for money, the first thing that comes to mind is the bank. But do you know that your creditworthiness is tested before you knock on the door of the bank? Yes, before applying for loan the most important thing is your CIBIL Score. If this score is bad, the bank may turn you away empty handed. Therefore, it is very important to understand the mathematics of CIBIL before applying for a loan.

What is CIBIL Score and why is it so special?

CIBIL score is a three-digit number that tells your entire ‘financial horoscope’. It ranges from 300 to 900 and tells you how faithfully you have paid your loans and credit card bills in the past. in india TransUnion CIBIL Apart from this, bureaus like Experian and Equifax also decide this score. The rule is simple—the higher the score, the easier it is to get the loan and at lower interest rates.

if your score 750-900 If you are a ‘preferred’ customer of banks. Here you can get instant loan at affordable interest rates. There itself, 700-749 The score of is also considered good, but below 600 The score is an alarm bell. In this range, banks consider you a risky customer and it becomes very difficult to get a loan.

What is the ‘ideal’ score for home and personal loans?

Whether you want to buy your dream home or take a personal loan, banks usually 700-725 Ask for a score above. many big banks 750+ Is considered the safest. In case of personal loan, banks also look at your company profile and job stability along with the score. If your score is in this range, you can also negotiate interest rates.

How much loan can one get according to salary?

Often people ask how much loan can they get? Generally, the bank will take credit for your ‘inhand salary’. 15 to 20 times Offer loan up to. Suppose your monthly salary is Rs 50,000, then the bank can give you a loan of Rs 10 to 15 lakh. But keep in mind, this is possible only if your CIBIL score is excellent and you are not already facing any big debt. Experts advise that your total EMI should not be more than 50% of your salary so that the financial burden on you does not increase.

‘Secret trick’ to get loan on bad score

If your CIBIL score is between 600-700 and the bank has refused to give the loan, there is still hope. For this you NBFC or Fintech companies Can turn to. These digital platforms give loans at slightly higher interest even to those with low scores.

There is another great way Co-applicant or guarantor Make If any member of your family has a very good CIBIL score, then you can apply for a loan by making them your partner. This increases the trust of the bank and reduces the possibility of loan rejection. Just remember, pay responsibly so your own score shines next time!