The CIBIL or credit score is an important metric that is used by financial institutions to check creditworthiness when they receive loan requests from individuals. So, how is it possible to get a loan even when the score is low? Read on to find out.
Credit score, also called CIBIL score in common parlance, reflects your creditworthiness. It is an indicator of how likely you are to repay a personal loan or credit card dues responsibly. A CIBIL score above 700 is usually considered a good one. The higher your score, the greater the likelihood of your personal loan application being accepted.
When you apply for a loan, most banks and NBFCs may fetch your credit score and report from CIBIL. While the lender may approve your application after determining your eligibility, they may also cancel the application in case of low CIBIL score.
But, what if you have a low/poor credit score and require a loan for an emergency? Or if you're a new credit customer and do not have a credit score? How would you get a loan in that case? Well, there’s not much to worry about!
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