Eid is around the corner! Planning a great surprise for your family, but got stuck because of a liquidity problem? That windfall gain that you were expecting on your equity did not happen or the amount earmarked for the surprise was spent on some unplanned expenditure? However, if you have handled your finances right, then you have a ‘friend’ to help overcome your problem? And that is your CIBIL score.
A good CIBIL score opens doors…
A better than average CIBIL score can literally open doors for you; doors to opportunities where banks are willing to lend you and employers willing to hire you. However here we will focus on how it can add zest to your fun and festivity.
If you are looking to shower your loved ones with gifts or celebrations and are unable to do so due to a cash crunch for some reason or the other, then a personal loan can come to your rescue. Personal loan can be taken for buying a gift like a smartphone, a weekend getaway with family or simply to host a feast for your friends and relatives on the occasion of Eid. These loans can extend for a period of 12 months to 60 months and are often processed pretty fast so they can come to your rescue at a short notice.
In case you are wondering where does the CIBIL score fit in, let us explain. A good CIBIL report ensures that not only your loan application is accepted but it is processed faster and you can get a good deal too. So a good CIBIL score does the following for you:
Ensures your application is accepted: The first thing a good CIBIL score does to help you is; it ensures that your application for a loan is accepted in case you meet rest of the eligibility criteria. In case of a personal loan documentation and conditions to be met with are quite simple. If you are seeking a loan to buy a consumer durable or an electronic gadget then most likely the amount will also not be very high, so with a good CIBIL rating your application is more likely to get accepted. For an auto loan the amount can be higher depending on what you are buying but a good CIBIL score pulls up your chances of getting the application accepted. Thus your CIBIL score can get you closer to fulfilling your dream this festival season.
Gets you better rates: Who doesn’t love a good bargain? So, though you want to borrow to help yourself in the celebration you do not want to pay a high interest rate; a high credit score can help you there too. A credit score reflects the risk potential you pose as a customer and interest rates depend on the perceived risk potential of a customer. Higher the risk potential; higher will be the interest rates charged by the bank.
High CIBIL Score = Lower Risk Potential = Low Interest Rates.
There can be a room for flexibility in interest rates especially in the case of personal loans which are unsecured loans (not backed by an asset unlike car loans). So, you could get a loan at a lower rate if you have maintained a healthy credit report.
If you are looking for a loan to brighten up your Eid celebration it wouldn’t be of too much use if it were sanctioned after the festival went by. So voila, your CIBIL score can help you here too! Banks are likely to process loan applications from those who have higher CIBIL Score. A CIBIL report has a lot of information presented in a concise manner so a look at your CIBIL report can help the bank in processing your application faster and of course a high CIBIL score gets it accepted while a low CIBIL score gets it rejected. You also save time because you do not have to approach another bank in case your application is rejected by the first one and repeat the process.
A Word of Caution…..
While you may want to splurge and enjoy Eid with your loved ones; remember all borrowing should be done with some planning. Even if it’s a small amount that you borrow make sure that you pay the installments on time without default in order to avoid any negative impact on your CIBIL rating and fines.
So borrow responsibly and have a fun filled celebration!