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Today we all seek loans for different purposes, be it a home loan or consumer loan. We are living in era of credit wherein taking loans even for luxury items is a very common thing. The most important factor for sanctioning a loan (apart from income of course 😃) is “Credit Worthiness” of the borrower. And this credit worthiness depends on a 3 digit number which is known as CIBIL score.
There are several factors like 1) Income levels, 2) assets of the borrower(s) like FDs / other investments, 3) past performance of credit history, that play part in lenders decision. However there is no fixed matrix that a borrower can know beforehand while applying for loan. One thing is common for all that is CIBIL score.
CIBIL score in simple words is summary of your credit history. The CIBIL score ranges from 300 to 900. A score > 750 is desirable for banks and a score less than that we lead to more enquiry from banks or even rejection of loan application.