Simple Definition
CIBIL score is a three-digit credit score that reflects a borrower’s repayment behaviour, credit usage and credit history. Lenders often use it while evaluating loan and credit card applications.
Why It Matters
A stronger CIBIL score can improve the chances of approval and may help in getting better loan terms, subject to lender policy.
Example
A borrower with timely EMI payments and low credit utilisation may have a stronger credit profile than someone with missed payments.
FAQs on CIBIL
Is CIBIL required for every loan?
Most lenders check credit history for unsecured loans. Requirements can differ for secured loans and specific lender policies.
Can I get a loan with low CIBIL?
It may be possible, but approval, amount and pricing depend on the lender, income, collateral and overall risk profile.