Sunday 13 December 2015

Mutual Benefits of CIBIL Score for Both Borrowers and Lenders

CIBIL score is a three-digit numeric expression that provides entire credit history of an individual. The expression ranges between 300 and 900 and a score of 750 and above is considered good. As such, this CIBIL score proves to be equally beneficial for both lenders and borrowers. The score acts as a tool and provides crucial help to both the entities to trade with each other. Thankfully, Indian masses are becoming increasingly conscious about it, which is an excellent implication for the nation’s economic revival.

Benefits of CIBIL Score

Benefits of CIBIL score for lenders

While hiring an employee there is a custom of asking the individual to furnish some references. A reference, from a third-party is such circumstances, does not guarantee about the future but it definitely establishes a good track record and a sound history of the candidate.

Somewhat similar to the analogy mentioned above, lenders retrieve the CIBIL rating of a loan applicant to assess the credit repayment history of the individual.

Different loans involve different degrees of risk for lenders. The logic behind it is simple yet sensible. People with an impressive repayment history are less likely to default in course of future in comparison to folks with bad repayment history.

Thankfully, a bad credit rating can be bettered by following certain norms and adhering to rules and conditions. There are many exclusive online portals that provide categorized information about how to improve CIBIL score.

Benefits for borrowers

CIBIL score or rating is simultaneously helpful for loan seekers too. An impressive CIBIL score provides a borrower with many advantages. It helps


  • One to seek loans faster as loan applications for these individuals are processed faster
  • Almost instant approval of mortgages
  • Avail lower interest rates both on loans and credit cards
  • Gain fast approval of housing loans at most reasonable interest rates


Thus, banks and credit institutions emphasize on good credit rating of borrowers for obvious reasons.

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