A personal loan is the most sought-after loan for its several perks and advantages. You are allowed to use the personal loan in the way you see fit. But getting a personal loan requires you to fulfill some specific criteria. Your first and foremost requirement is to have a good credit score.
You should go to a bank or financial institution to get personal loans. But the lender is to first check your credit record. In this regard, your CIBIL score is an important criterion or parameter you need to know about. If you have a high CIBIL score, you have a good past track record of making payments for your credit card or loan.
Hence, the lender is highly likely to approve your loan request. But if you have a low CIBIL score, then there is less chance of getting your loan approved by the lender. Upon having a low score, you must put effort to improve CIBIL Score.
Benefits of High CIBIL Score
There are plenty of benefits of having a high CIBIL score that will help you get personal loans. But before you apply for a personal loan, you must know about the benefits you are to have in this regard.
- Quick Approval
The benefit of a high CIBIL score is that your request for a personal loan is highly likely to get approved fast. A high score ensures that the lender will favor you to approve your loan request without any objection or difficulty.
This is one of the best reasons you must put in proper effort to increase your CIBIL score. This score plays a significant role in approving your loan fast. Hence, if you have a low CIBIL score, then you must do the needful to fix CIBIL score.
- Get Competitive Processing Fees and Interest Rates
Another benefit you get due to a high CIBIL score is a competitive processing fee. Your high CIBIL score enables the lender to be lenient while charging you a processing fee. Not to mention, the interest rate you will have to pay for the personal loan will also be quite competitive compared to the market.
You’re high CIBIL score proves that you will repay your loan within time. Therefore, the lender never thinks twice about charging you lower interest rates for your benefits and convenience. This is why a high CIBIL score is really known to be extremely beneficial for a personal loan applicant.
- Pre-Approved Loan Offers
Apart from the above, describe the benefit that is another great benefit you are entitled to get from having a high CIBIL score. The benefit is that you get pre-approved loan offers from different lenders out there. As you have high CIBIL scores, the lenders know you will repay the loan in time.
Hence, they always proceed to make you their client in the best way possible. Not to mention, such pre-approved personal loan options come with exciting benefits, such as credit cards and other perks.
On top of that, you may also be given the option to decide on the loan amount you need. Sometimes, the bank may only agree to offer you a specific loan amount. But it could always be a subject for negotiation. All of these are possible due to your high CIBIL score. Hence, you can understand the ultimate advantage of having a high CIBIL score.
- You Get to Negotiate With the Lender
You can negotiate with the lender if you have a high CIBIL score. Apart from the offered loan amount and interest rates, you also get to talk to the lender to increase the amount and lower the interest rate. This is certainly considered to be quite a great benefit.
- Get Longer Tenure For Loan Repayment
Last but not the least, due to the high CIBIL score, you get the advantage of having a long repayment period. It becomes quite advantageous for you in this regard. The tenure would be quite flexible for you as your monthly loan repayment installments would be lower. You will thus be able to balance your financing easily despite your monthly EMI. Please feel free to share your insights regarding the discussion below in the comment section.