CIBIL: Applying for an unsecured loan? These are the credit score requirements
unsecured loans vary from banks to banks and depend on a range of factors such as current employment, income, existing loans, and the credit history. There is no denying the fact that banks tend to lend to borrowers who have good to excellent credit scores for unsecured loans. Excellent Credit Score (Above 750): Borrowers with excellent credit scores usually have a higher chance of qualifying for unsecured loans and may also be given better interest rates and terms.
Banks view them as low-risk borrowers who are likely to make payments on time. Good Credit Score (between 700 and 749): Borrowers with good credit scores may qualify for loans, but they might not receive the most favourable interest rates and terms. However, banks view them as low risk.
ALSO READ: CIBIL: How do personal loans affect your credit score? Fair Credit Score (between 650 and 699): Borrowers with fair credit scores are vulnerable to face a higher degree of scrutiny from banks at the time of applying for unsecured loans. They may qualify for loans, but might encounter higher rates of interest and stricter terms. Poor Credit Score (lower than 650): Borrowers with poor credit scores may find it challenging to qualify for unsecured loans from traditional lenders.
They may need to explore alternative lending options or work on improving their credit score before applying for a loan. So, even if you have a lower credit score, you may still qualify for a loan if you can show other positive financial attributes. ALSO READ: What are the specific CIBIL score requirements for business loans? MintGenie explains One should protect their personal and financial information to prevent identity theft that can lead to fraudulent activity on accounts and damage credit
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