CIBIL Score: Metric estimates your ability to repay personal loan; check steps to calculate your score here

A personal loan is one of the most common borrowing options for people seeking funds for a variety of personal reasons. In India, some of the best personal loans help borrowers access a high-value sanction which is done online and within a matter of minutes. Among the many factors, this ease of access is totally dependent on your eligibility, of which one of the main factors is the credit score . Usually, lenders in India will require the borrower to have a minimum CIBIL score of 750. The higher the CIBIL score, the easier will be the qualifying time for these loans to process. What is CIBIL score? It is a three-digit credit score assigned by TransUnion CIBIL Limited. CIBIL score or credit score is a number that lies on a scale from 300 to 900 points. With these points, based on your credit history, lenders are able to decide a person’s credit worthiness or capacity to repay a loan. Then they accordingly decide on loan eligibility and applicable loan terms. A credit score above 750 is considered excellent and can get approval for a personal loan at lower interest rates. However, if your CIBIL score is below 750, an individual can still apply for a personal loan, but the chances of interest rate might be high. The CIBIL score is calculated on 4 key factors , which are: - Frequency of loan inquiries: Individuals with multiple credit inquiries or past loans can have a negative effect on the score as it signifies that past loans might add up to the current - Payment history: If an individual has a credit history that reflects late payments or defaults is likely to lower your credit score - Credit utilisation: Borrowers who utilise a high percentage of their assigned credit limit indicate a rising dependency on credit. This can also be another negative factor that can affect the credit score - Credit mix: To have a positive impact on the credit score, an individual should have a balance between secured and unsecured debt Steps to calculate CIBIL score for free: Step 1: Log in to the CIBIL website https://www.cibil.com/ and click on the tab ‘Get Your Free CIBIL Score & Report’ Step 2: Create an account by entering your personal details, such as name, email ID, ID proof, PIN code, and phone number Step 3: After creating an account, click on the ‘Accept & continue’ tab. You will receive an OTP on the registered mobile number Step 4: Enter the OTP and complete the verification process (Before that you will be directed to a new window, where it confirms your enrollment) Step 5: Finally, click on the ‘Go to Dashboard’ option to view your credit score.