CIBIL is also known as the Credit Information Bureau of India Limited. It plays a crucial role in the Indian financial setup. The organisation gathers information and calculates a CIBIL credit score for credit applicants. This score denotes the individual’s creditworthiness and ability to repay the loan. A person with a good CIBIL score is considered to have the ability to pay back the loan amount to the bank as per agreed terms and conditions.
A CIBIL report contains details of a credit user. Some of these include credit score, credit behaviour, credit history, etc. A credit score is a three-digit number calculated by looking into the financial history of the individual. CIBIL scores range between 300 to 900. A higher score is considered to have better chances of easily getting loans or other forms of credit.
One of the key reasons why lenders look into a credit report before granting a loan is to check the credit score of the applicant. CIBIL score is based on several factors like repayment history, types of credit taken, number of loan accounts held, credit history, outstanding loan amounts, etc.
CIBIL is checked to determine the:
1) Minimum Credit Score
2) Creditworthiness
3) Interest Rate
4) Loan Amount
