CIBIL Score For SBI Personal Loan
Personal Loans may vary based on the bank's policies and the individual's financial profile. SBI has not defined any CIBIL Score criteria to avail of a personal loan. If you have a good credit score range of 750 and above, the chance of approval is very high. On the basis of your CIBIL report, SBI considers you a credit-worthy customer. Check your credit report free before applying for a personal loan. it doesn't impact your CIBIL Score.
CIBIL Score Required for SBI Personal Loan
Personal Loan is an unsecured loan SBI decides the merit for considering the Personal Loan applications through the CIBIL score awarded to the applicant. However, SBI has not specified any minimum CIBIL score for SBI personal loans, the CIBIL score is higher than the changes in loan approval. Still one must have a CIBIL score of more than 750 to get a personal loan. The reason is that applicants with a credit score of 750 and above are considered low-risk borrowers with a guarantee of repayment of the loan within the maturity time.
In case the loan application is rejected for want of a good credit score, the applicant can follow a strategy as mentioned below to improve the score and approach the bank again for the loan.
- Clear all the existing credit cards and loans overdue immediately and continue to pay the subsequent EMIs on time.
- Try to get the credit card limit upgraded to bring the utilisation level to less than 50%.
- Do not opt for revolving payment of credit card dues.
- Avoid frequent loan and credit card enquiries.
In some cases, if the credit score is below the required SBI Credit Score for a personal loan, the bank might consider other parameters like debt to income ratio, income from sources other than salary, stability of employment, etc., besides the CIBIL Score for evaluating the loan application.
CIBIL Score Range for SBI Personal Loan
CIBIL Score is the indicator of your chances to procure credit facilities from lenders. The CIBIL Score ranges from 300 to 900, and a higher score will prove you are trustworthy and with a good financial status. SBI Bank Personal Loan CIBIL Score required is 750 and above. The higher the CIBIL Score is, the better will be the Personal Loan terms and the quicker will be the loan approval.
However, SBI may not deny Personal Loans to candidates with a score below the required SBI CIBIL Score for Personal Loans. In such cases, you might have to include a co-obligate who has a good credit score and a stable income. Sometimes the bank may insist upon additional security.
Importance of CIBIL Score for SBI Personal Loan
A good CIBIL score is important because it helps both borrower and lender in the following ways
- CIBIL Score helps the borrower to know his creditworthiness. A person with a high CIBIL score has more chances of getting an SBI Personal Loan than the one with has low CIBIL Score.
- Another importance of maintaining a good CIBIL score is that SBI may give a Personal Loan at a lower interest rate than the one having a bad or low CIBIL score. Also, there are chances that there is a special discount on processing fees and other related charges. However CIBIL score is not the only criterion, there are other factors responsible for your SBI personal loan approval.
Factors That Affects The SBI CIBIL Score For Personal Loan
Here are the key factors that affect the CIBIL score for SBI Personal Loans.
- False CIBIL Report.
- Missed or Delayed credit card dues or loan EMIs
- Paying the minimum due amount only
- Generating multiple credit reports ina short duration
- Outstanding Debts.
FAQs
A good CIBIL Score indicates to the bank your responsibility as a borrower and your creditworthiness: a CIBIL Score of 750 and above is considered a good CIBIL Score by SBI.
The ideal CIBIL score for a personal loan is 750. A CIBIL score range of 750 to 850 depicts your responsibility as a borrower, your creditworthiness, your credit profile, and your financial stability.
Before considering the loan application, SBI does an extensive background check of the prospective borrower with the help of the CIBIL Score. A score of 300 to 500 does not give a good impression about the repayment capacity of the borrower, and so the application will be rejected. A score between 600 and 750 will still be considered if the borrower is able to convince the bank about his/her repayment capacity despite the low score. If the score is 750 and above, you can wade through the loan process and will get instant approval along with various benefits.
Though 750 is the ideal CIBIL Score, some of the lenders in India do consider a score between 700 and 850 as good for considering a personal loan proposal.
When there is no information about the credit history of the individual, the CIBIL Score will be 1. This simply means No History of Credit which is not a good proposition as the lenders will not be able to gauge the repayment behaviour before providing approval for a loan.
The Credit Bureau is the CIBIL Score calculator, and you can only check your credit profile with the information provided in the credit history.
A CIBIL Score of 750 and above is good for a personal loan.
You can get a loan if your CIBIL score is 600 if you
- Include a co-borrower for the loan with a good credit score and regular income.
- Provide security like gold jewellery or fixed deposits.
- Opt for a lower amount.
The loan will be provided at a higher interest rate.