Cibil Score For HDFC Personal Loan
CIBIL (Credit Information Bureau India Limited) is a information collective agency. CIBIL was founded in the year 2000. The Credit bureau services started with a bang in the year 2004. It was a well-designed and Praise worthy efforts by the Promoters.
CIBIL was promoted by the State Bank of India (SBI) , Housing Development Finance Corporation Limited (HDFC) and Dun and Bradstreet Information Services India Pvt Ltd. The efforts has gained control over the NPA’s ( Non-Performing Assets) and its drives the Indian Economy efficiently.
CIBIL tracks the credit history of an Individual and Commercial. Registered Banks and Financial institution with CIBIL send the records of their respective Customers loan and credit cards to be recorded in CIBIL on a periodic basics (Monthly). This record will help the other Banks and Financial Institution to know the Customer Trust worthiness and their past history of Loans and Credit Cards. So that’s brings them easy to help the Customer in their needs.
A CIBIL score is detailed credit history and credit worthiness of a person. Based on this history CIBIL will give you the score from 300 to 900. Higher the CIBIL score will be better for getting approval of your housing loan, car loan, personal loan or credit card. Also without knowing your credit history if you apply many times for loans or credit cards then your score will decline!!!
Minimum CIBIL score for an HDFC personal loan is somewhere around 700, Higher credit score helps you to get it in low-interest rate.
Age Criteria: The younger you are, there is more probability. General guideline followed by most banks for personal loan for salaried employees is they must be between 21 to 60 years aged. However for self-employed it is between 25 to 65 years.
Employment Stability: This is a very crucial aspect for personal loan consideration. Unless you are salaried and employed for more than 2 years in the current profession or if self-employed minimum 5 years of total tenure of earnings, you will not be considered as eligible. You should have income 50k per month.
Credit Rating: Apart from your company’s performance, individual credit rating holds a lot of value. Having good credit rating increases the probability of getting loan with more flexible option on tenure, amount, EMI and interest rates. In case of any default payment records, huge outstanding loan, fraudulent track records, the banks has every right to cancel the loan or charge higher interest rate. CIBIL score should be above 750.
Financial Situation: It’s not always about the present, the past financial records will also have a great call on deciding whether you are eligible for a personal loan or not. Having good financial records is the key, will eradicate rating issues and will increase the total amount eligibility.
Employer: The employer with whom the applicant is working with is the best way to gauge the credibility of the applicant. Being a part of reputed and high turnover companies is an asset when it comes to applying for personal loan.
Know More About: Cibil Score for Personal Loan
|Profession||Salaried persons working in government, private or MNCs companies||Professionals like Doctors, CA, CS, Architects|
|Applicant Age||21 - 60 years||21 - 65 years|
|Minimum Eligible Income||Rs. 15,000 per month||Rs. 5 Lakh gross annual receipts|
|Maximum Eligible Loan||22x of monthly income||Income|
|Maximum Loan Amount Eligibility||Rs. 90 Lakh||Rs. 50 Lakh|
|Minimum Work Experience||24 months||60 months|
CIBIL score determines your creditworthiness and repayment capacity. As personal loan are unsecured loan, your personal loan eligibility depends on a healthy CIBIL score. Do not apply for fresh personal loans if you have a CIBIL score less than 700 or have defaulted on loans in the recent past.
Different banks use different CIBIL score criteria while approving personal loan applications. We have given below typical minimum CIBIL score used by banks for personal loan applications based on market experience of dealing with personal loan applications. These are not based on policy of banks. Underwriting policy and CIBIL score requirements of banks may be confidential and may vary from time to time.
A personal loan application can be rejected even with a high CIBIL Score. There can be many reasons for it, such as-
Changes in nature of employment: CIBIL score are based on past credit history and past employment information; there might be an instance that your nature of employment has changed. Delay in salary payments also contribute to loan rejection.
High Existing Obligations: EMI's on current loans, rent, will lower your eligibility for fresh loan Loan Enquiries : Too many loan inquiries made for availing loans in the recent past can lead to rejection of current loan application.
‘Written off or Settled Status’: If you have not repaid the full loan amount and have made settlement with bank, then that past part payment can hurt your present eligibility for fresh loan.
Guarantor: If you were a guarantor of a loan which is recently settled through part payment then that might hamper your loan eligibility
ITR History: Banks check minimum two years ITR documents.
Credit Proportion: Higher proportion of unsecured loans (like credit cards) compared to secured loans (like gold loan, home loan) can also lead to rejection of our loan application.Past default: Past defaults specially in repayment of secured loan EMI's can lead to difficulty in getting fresh loan.
Hence if you have a score of -1, then getting hdfc personal loan will be difficult but its not impossible. Some banks may reject the application, while a few banks or NBFCs might still decide to lend based on a credit appraisal on other factors including the salary/income proofs, educational background, employer etc of the prospective borrower.
You can also opt for a gold loan or a credit card and make regular payments on the same to create your CIBIL score over time.
In such cases, banks can check CIBIL Transunion 2.0, which follows a different approach for evaluating the past history of the borrower with less than 6 months of credit history.
CIBIL 2.0 provides a score for new borrowers within a range of 1-5, where 1 represents the highest risk of default and 5 represents the least risk of default.
The score is dependent on various parameters such as loan type (secured or unsecured), past credit seeking activities (like number of loan enquiries), 3 months overdue in any month for the past loan period, demographics (like age and location) etc.
Many banks have migrated to the new credit score versions, thus improving their ability to take a decision to lend for borrowers with less than 6 months of credit history. However, those on the older credit score versions might still receive a report which gives a score of 0 or -1 for new borrowers.
How is a personal loan granted based on the CIBIL score?
A personal loan is an unsecured loan so the risk factors of the lenders are much higher than any other loans. They consider your earning and your credit score as important factors for the assurance of your repayment capability.
Credit score is the reflection of your credit history. So, whatever financial transactions you do will be reflected on your credit report. You need to have a good CIBIL score to apply for a personal loan.
The personal loan approval parameters are different for different lenders. But generally, above 750 it is considered to a good credit score. If you have your CIBIL score above 750, you will surely be entitled to apply for a personal loan. Then, on the basis of your income, your personal loan amount will be calculated.
As you have mentioned that your salary is Rs.40K, you can afford to pay an EMI of Rs. 12,000. So, you are eligible to get a loan of Rs. 5 lakhs, which you need to repay within 5 years at 14% rate of interest.
Make use of the above listed options to get personal loan in India even when CIBIL score low. Some of the top lenders of personal in India are HDFC bank, ICICI bank, Indus Ind bank, Axis bank, and Canara bank. Go through the terms and conditions of the bank or non-banking financial institutions before taking a personal loan.
How to get a personal loan with a poor CIBIL score?
CIBIL (Credit Information Bureau, India Limited) prepares a credit score which acts as the first criterion to check the eligibility of a person for a personal loan. This credit score is a three-digit numeric summary of your entire credit history. This is based on the information provided by banks and other financial organizations on a monthly basis whose value ranges from 300 to 900. A score lower than 750 is considered as a low CIBIL score. Banks generally do not sanction personal loans of people with a low CIBIL score, or even if they do, they may charge a very high rate of interest.
When applying for the loan, CIBIL score is the first thing they would check. CIBIL score depends upon the repayments of personal loans, home loan, vehicle loan and/or credit card debts. In case the repayments are done in a timely manner, it will translate into a good CIBIL score. On the other hand, untimely payment of dues and EMIs will have a negative impact on your CIBIL score.
A personal loan is a loan taken to deal with personal emergencies. So, to sanction a personal loan, a lender thoroughly checks if the applicant is capable enough to repay the loan timely. Since there is no collateral or security deposited with the lender, it is important for them to check the past history of the applicant in terms of credit repayment via CIBIL score.
What is the best CIBIL score for a personal loan?
CIBIL stands for Credit Information Bureau (India) Limited; it is the first credit information company I India. CIBIL score is a scale of depicting your credit worthiness and it has a good impact on your application for any kinds of loans, like a personal loan. Normally, a CIBIL score that lies within 700 to 900 is considered a good one for availing quick personal loans, but the standard may vary from one bank to another. Some financial institution may pass your application even when the score in within 600-700 range. It all depends on your documentation, location of the bank, and flow of the application. But, if you have a good CIBIL score you can definitely ask for lower interest rates and favorable terms and conditions.
What's considered good Equifax credit score for personal loan?
Personal loan is a unsecured loan. You can get this loan for any emergency requirements. To get a personal loan 750 is the good CIBIL score. You can get a loan if you have a 700 and above credit score. It depends on lenders and banks how much CIBIL score they look for to give a personal loan.
If you have good transactions and you don’t have any debt then you will get a personal loan easily and if you have CIBIL score 700 is also fine.
How to get personal loan with low cibil score and bad history?
Now in this piece of content, I will guide you regarding how you can get your loan application approved while having low/bad CIBIL scores. Below we have mentioned a few tips which may work as an alternative to help you get personal loan no matter if your CIBIL score is poor.
If you have got a good salary now:
Now if your earning is good enough now and that you have enough capacity to repay your loan then this will help you get your loan application approved no matter whatever your CIBIL score is.
Go through your spouse' CIBIL score:
If your CIBIL score is poor and your spouse has got a good CIBIL score, then you may ask for his/her assistance. You can get your loan application approved by making your spouse a join loan holder.
Seek certain HFCs that offer loans to individuals with low CIBIL scores:
There are certain companies and organizations which provide loans to the individuals having bad CIBIL scores. However, they ask for higher interest rates on the loan repayment.
Peer to Peer Lending:
Well this type of practice is popular in abroad. However, it is being implemented in India gradually. The interest rates on this loan are quite high and loan amount is small as well.
You can go for loan against collateral including shares, assets, FDs, gold loan and there are many other products available as well. Banks do not go through the process of CIBIL report for such products.
Call now for free expert advice: +91 95350 61366