People often resort to loans for the purchase of houses, shops and their own private office. During the application for a loan, you have to submit all the requested documents from the bank, though sometimes your loan application is rejected from the bank. But have you ever tried to know why the banks of your loan applications reject them? We will explain this to you through this article.
Why Rejects Loans Applications:
The bank checks your cibil score before you loan, which is also called credit score. Typically, in the event of a poor credit score, the bank either refrains from giving loans to you or refuses to give you a loan directly.
Credit Score Before Loan:
Credit score or Cibil score is the most important role in taking loan from the bank. Your credit score is actually the details of the loans taken earlier and its repayments. The bank approves your loan application only after checking your credit score in which your financial activities are tested. If your credit score is better then the bank offers you easy loan. But if your credit loan is not good then there is some difficulty in getting loan. So, if you are thinking of taking a loan, then definitely check the credit score before applying for a loan.
What happens to the credit score and who it gives:
The credit score is a number of three digits. This number is between 300 and 900. The higher the credit score, the better it is considered. The credit score may be weak even after making a default. 79 percent of the personal loans are approved on a score of more than 750. Credit Information Bureau (India) Limited (CIBIL) gives credit scores, which are prepared based on your old financial history. While preparing this, Cibil takes into account your credit history.
Check your Sibyl Score at home:
You can know your cibil score sitting at home by filling the online form and fees. To know the credit score, you go to the website www.cibil.com/online/credit-score-check, where you will have to fill out an information form. After filling the form, Rs. 470 will be paid as fee. After this you will be asked five questions for the authenticity of which you will have to answer. Keep in mind that you have to give the correct answers to at least three questions in order to validate your authentication. You can see your credit score after this process is complete. Not only this, your score card is also sent to you on behalf of the CIBIL via e-mail.