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How Much CIBIL Score is Required for a Personal Loan

What is a CIBIL Score?

Importance of CIBIL Score in Personal Loans:

Minimum CIBIL Score for Personal Loan:

CIBIL Score Range and Loan Approval Probability:

CIBIL Score RangeLoan Approval Probability
750 – 900High
700 – 749Moderate
Below 700Low

Factors Influencing CIBIL Score:

  1. Payment History: Timely repayment of loans and credit card bills.
  2. Credit Utilization Ratio: The proportion of available credit being utilized.
  3. Credit Mix: The variety of credit accounts, such as loans and credit cards.
  4. Length of Credit History: The duration of active credit accounts.
  5. New Credit Applications: The frequency of applying for new credit.

Improving Your CIBIL Score:

  1. Ensure timely repayment of existing loans and credit card bills.
  2. Maintain a low credit utilization ratio by using credit conservatively.
  3. Avoid closing old credit accounts, as they contribute to your credit history.
  4. Limit the number of new credit applications to prevent inquiries.
  5. Regularly monitor your credit report for inaccuracies and dispute any errors.
Conclusion:

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