How to Check CIBIL Score Online in Just 4 Simple Steps
Every loan providing firm or bank will want to access your CIBIL Score before giving a loan. So what is it? And why do these firms and banks ask for it before giving a loan? In simple terms, CIBIL Score or credit score is a three-digit score ranging from 300-900. If you are having a higher credit score, then you will get business loans from banks or any NBFC like Ziploan quite easily.
Persons with no history of credit will possess a score of -1. If an individual has a credit record older than six months, his credit score would be 0. It takes one 18-36 months to build up a high credit score. So what does the CIBIL Score depend on?
CIBIL score mainly depends on the credit history, repayment habits, the ratio of the repaid amount to the business loan amount, frequency of credit taken, and the new accounts opened and closed. Let us understand the simple procedure to know your CIBIL Score online in a few minutes.
How to check out your CIBIL Score online?
How to check cibil score free is no more a worry. As everything operated digitally these days, one can check CIBIL Score digitally for getting any kind of MSME business loan.
- To check CIBIL Score first go to cibil.com and login there.
- You will be redirected to the page where you have to enter the necessary information like your name, phone number, PAN card details, date of birth, monthly salary etc.
- An OTP would be sent to the phone number and the email address you had entered in the previous step. Enter the OTP you have received for the completion of the verification process.
- Now, you will be able to view your CIBIL report.
Suppose you’re an MSME and want to obtain MSME loan with no collateral. A high CIBIL score is more than a necessity. A good CIBIL score is crucial for every business house as well.
Steps for Improving CIBIL Score and getting Business Loan approval Quicker:
1) Pay all the loans, EMIs on time to every lender. Your records are taken into account while determining your CIBIL Score; hence, keep your repayment records clean. Two years of good repayment history will fetch you a good CIBIL score.
2) Careful and mindful application for credits
Businesses and MSMEs should always make sure you are applying for credit to traditional sources only. Formal sources have low-interest rates and demand no or marginal collateral. Formal sources take a bit of time for approval but are worth it. Secondly, carefully analyze your spending and verify whether the loan you are seeking is only what you need and not a surplus amount. Surplus amounts trigger unnecessary spending, and the interest they come up with is a definite liability for your business.
3) Monitor your CIBIL Score in regular intervals
As a business, you should always be aware of your CIBIL Score at every instant. For this, check your CIBIL Score regularly and Monitor whether you score good enough for seeking loans in emergency situations. Better CIBIL Score attracts formal loan sources, and some banks even offer lower interest rates to businesses with high CIBIL scores.
What a good CIBIL score is?
If you’re a business or MSME, a CIBIL score of more than 750 is considered very good. This indicates to the lender that your company has a fantastic track record, is punctual when it comes to repayment of loans. The banks and the lending institutions would be eager to provide you with the business loans with the lowest possible interest rates.
There are various ways to improve your CIBIL Score. The most obvious thing to do would be to stop acquiring a lot of debts. Secondly, make sure you pay all your loans on time. Finally, request for the business loans only when you need them and only the amount you actually need.