As part of its ongoing CSR initiative, Muthoot Finance donated thirteen battery-operated tricycles to differently abled individuals in Karnal, Haryana. This initiative aims to empower beneficiaries by enhancing their mobility and independence.
Unlike a vehicle loan or home loan, a personal loan is unsecured. The CIBIL score acts as a marker of an individual’s financial responsibility, reflecting how the person has managed credit in the past. The CIBIL score is used by lenders to assess the individual's ability to repay the loan and impacts the approval, interest, and borrowing terms of the personal loan.
It is best to have a CIBIL score between 720 and 750 for a personal loan. It is also possible to get a personal loan with a score of 600-700, but the interest rate in such cases will be higher. Secured loans have a lower minimum CIBIL score requirement, like above 600 for business loans or above 550 for home loans.
The CIBIL score is an important parameter, as the three-digit number acts as a key indicator of an individual’s creditworthiness. The CIBIL score ranges from 300 to 900 and summarises an individual’s credit history, reflecting how responsible they have been with borrowing and repayments in the past. The CIBIL score acts as a financial trust score for lenders and influences access to credit, loan approvals, and interest rates.
In general, when it comes to applying for loans or credit cards, a CIBIL score of 750 or above is considered to be ideal. Many financial institutions also accept scores above 700. All banks and NBFCs may have different requirements for a minimum CIBIL score, but usually, it becomes harder for people with a CIBIL score below 685 to borrow funds.
