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Planning your finances for a huge expenditure on the horizon? A wedding, a business to be set up or just a long overdue holiday? Or has an unexpected emergency expense come up that your savings can’t cover?
A personal loan from HDFC Bank may be exactly what you need. You can borrow up to Rs.25 lakhs for any expenditure - usually approved within 72 hours. This is, of course, based on your eligibility and ability to repay your loan.
Say you’re a 30 year old salaried-employee with five years of work experience, living in a rented place in a metro, you automatically meet HDFC’s personal loan criteria for a loan up to Rs. 5 lakhs with attractive interest rates and EMI options. But this is just your loan eligibility. Whether your loan gets approved on not depends largely on your CIBIL score.
CIBIL is the Credit Information Bureau of India Ltd and is India’s first credit information company. The ‘Credit Bureau’ as it is also known collects, analyses and maintains the credit history of individuals (and legal entities), making it available to banks and other financial institutions upon request. One reason for this is to be able to rank individuals (and legal entities) on a standard scale so that banks and lending institutions can be assured that a borrower can repay his loan, based on his history.Why is the CIBIL score so important? What does it contain and what scores are considered favourable?
When you take out a loan, the lending entity undertakes the risk that you might not repay your loan or honour your loan payments. The CIBIL score can stand as a vote of confidence in your ability to repay, or can be a witness to your bad credit history. In the case of unsecured HDFC personal loans, this CBIL score/rating is all that HDFC Bank has to look at to take a call on your final eligibility.
Your credit history is the sum total of all the details of your dealings with banks and financial institutions in terms of your capacity to repay outstanding balances of borrowed amounts. It takes into account factors like:
These factors, among others, are taken from banks and compiled, collated, analysed, evaluated and a pattern is dawn about your ability to repay outstanding balances. This pattern is represented as your CIBIL TransUnion Credit Score. The different scores that one can have are:
Most banks in India require you to have a CIBIL TransUnion Score of above 700 to be eligible for personal loans. Since these loans are unsecured, your CIBIL score is a big factor in getting your loan approved. HDFC and other banks are approving loans for those with a scores of 700-750, or higher, with 700 being the absolute lowest limit. You should ideally aim for a score >750.
CIBIL Credit Reports have sections for comments against your borrowing history. Bank representatives sometimes give you the option to reach a “settlement” with the bank if you are unable to repay the full amount. This means that your loan has not been “repaid in full” and is considered a negative remark. Even a score above 750 but with negative comments like “settlement”, “defaulter”, etc. that imply that you did not repay the full amount on the terms on which you borrowed it are factors that go a long way in getting your loan approved/rejected.Your loan could also be rejected if:
To successfully take out a HDFC Bank personal loan, we recommend that you maintain a respectable CIBIL TransUnion credit score by:
Performing simple tasks like planning payments on time, having securities in case you are unable to pay, maintaining good relations with banks, staying away from guaranteeing loan-defaulters, etc. goes a long way in making sure you have the financial freedom and power you need, when you need it.
|As explained above, is your CIBIL score good? Now, apply for the HDFC Bank Personal Loan|
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