There might be few times in your life when you require some additional funds to mitigate your long term or short term financial goals or financial emergencies. Whether it is a wedding, a requirement for renovating a home, planning a vacation or meeting medical fund shortages in case of emergencies like accidents etc., a Bajaj Finserv Personal loan or personal loan offered by other lenders can assist you to attain your financial obligations.
However, those looking to apply for a Bajaj Finserv Personal loan or personal loan offered by other lenders should know that your credit score is one of the initial filters applied by lenders when evaluating your application for a personal loan.
Note: For those with existing relations with Bajaj Finserv can directly contact Bajaj personal loan customer care number to know if they can avail of a loan at a preferential rate and suitable terms and conditions.
What is meant by credit score, and why is it important for availing Bajaj Finserv Personal loan or personal loan offered by other lenders?
A credit score is used by banks or lenders for evaluating the borrower’s creditworthiness. If you can manage your finances responsibly and hold a strong credit history, you may have a good credit score. For most lenders, a score of 750 and above is thought to be excellent for approving loan applications, including personal loans.
TransUnion CIBIL is considered to be one of the trustworthy Indian credit bureaus. Lenders like banks and NBFCs usually evaluate the CIBIL score of the applicant when processing his/her application. While there are other credit bureaus such as Experian, CRIF High Mark and Equifax offering equally accurate credit scores, CIBIL is widely known in the Indian market.
Bajaj Finserv personal loan applicants or applicants of other lenders having a lower CIBIL score of below 750 might witness a tough time availing of a personal loan. Such applicants are either denied a personal loan or are approved personal loan at a higher interest rate to make up for the lender’s credit risk of lending such applicants.
Also, lenders use numerous other parameters like age, location, income stability, work experience, profession etc., to evaluate the applicant’s eligibility. However, when it is about applying for a personal loan, holding a good credit score for their approval is crucial.
Reasons for CIBIL score to be crucial for Bajaj Finserv personal loan approval or approval of a personal loan from other lenders.
Analysis of data in the credit report
CIBIL accumulates data from various financial institutions to create a credit report for individuals. The credit bureau usually delivers the credit score of an individual in a 3 digit score ranging anywhere from 300 to 900. Note that the higher your credit score, the better is your chances of availing of personal loan approval.
To put it simply, one’s CIBIL score is nothing but a numerical representation of their creditworthiness. This score helps decide your lender as to how likely and capable you might be to repay your EMIs based on your loan schedule. A lender even reviews your CIBIL score to hedge their risks by endowing you with excellent loan offers for those with higher credit scores. However, those individuals with lower CIBIL scores are denied good loan offers and maybe given approval at a comparatively higher interest rate. Thus, it is necessary for every individual to timely review their credit report keep track of their data and score and report them to the concerned lender or bureau in case of any discrepancy. Doing so helps you remain ready for a personal loan as a requirement for a personal loan is uncertain in nature and can arise anytime in future. At that time, checking your credit score right before applying for Bajaj Finserv Personal Loan or personal loan from other lenders would be of no help. It is because building a good credit score takes time.
Approval of loan application
Holding a high CIBIL score serves as a catalyst in the process of submitting personal loan applications. When a particular lender receives a personal loan application of an applicant having a high credit score, it usually processes the loan swiftly as his/her proof of credibility already has been authenticated. This, in turn, results in instant fund disbursal into your bank account so that you can, without delay, put the fund for use.
Rate of interest
Mostly, Bajaj Finserv Personal Loan rates or interest rates available by other lenders act as a deal-breaker when you apply for a personal loan with a good credit score. Applicants with a good CIBIL score are usually in a good position and are generally offered the lowest rates at suitable terms and conditions. Having said this, remember that your interest rate on a personal loan can impact your loan repayment tenure significantly on being offered a lower interest rate on a personal loan, your potential to opt for a lower repayment tenure increases.
A personal loan’s ticket size is even dependent upon your credit score. Having a better credit score equates to having the potential to get approved for a higher loan amount. Additionally, having a strong credit score even makes sure that your personal loan easily goes through with minimal documentation. Besides these, there are even a few of the additional advantages of holding a strong credit score. They are:
* Nowadays, most organizations have started performing credit checks before they hire candidates. Having a strong credit score adds to your chances of availing yourself of a good job.
* Additionally, many landlords, as well as societies these days, may request credit checks before they agree to rent you a specific place.
* Furniture rental companies even perform your credit check before they offer you a price. Holding a good credit score helps you avail yourself of a good deal.
Thus, before you apply for Bajaj Finserv Personal Loan online, it is recommended to periodically review your credit score so that you can remain prepared to avail personal loan whenever any situation of monetary shortfall arises.