SIIA Advisory Consultants LLP

Knowledge Bank

CIBIL Score

An unsecured business loan is provided to proprietorship, Partnership, or Private Limited company, Limited company or self employed professionals without any collateral security. The funds can be used for:

Past Repayment Track Record	• Repayment track record of all your past debts • Consistent repayments lead to a higher score • Delayed payments lead to a lower score
Defaults, Settlements, Write-offs	• Write-offs on past debts affects your credit score
Loan Enquiries	• Too many loan enquiries made for availing loans in the recent past afect the score negatively

What is a good Credit Score?

Lenders tend to avoid granting credit to borrowers with a score less than 700 with CIBIL for secured loans like home loan. For unsecured loans like personal loan and consumer loans, tend to target customers with a score of 750 or above.

Credit Score Estimate	What it may mean for your credit health?
750 - 900	• Excellent Score, consistent past repayment track record
700 - 750	• Fairly good score reflecting fair past repayment track record
550 - 700	• Lower score reflecting some delays or irregularity of loan repayment in the past
300 - 550	• Reflects a history of multiple delinquencies and/ or over leverage • Extremely difficult to obtain loans from organized lenders

How to improve your CIBIL score?

• Pay all EMI’s regularly and on time
• Keep overall borrowing manageable
• Refrain from using credit cards. Prefer using debit cards instead of credit cards
• In case of any issue with a bank regarding a loan or charges, fight the matter but still pay EMI’s on time.

How to know your CIBIL score

Your exact score is available online in your CIBIL report. However, to know your exact CIBIL credit score online, you must access your CIBIL report online at www.cibil.com