Here's How a Good CIBIL Score Can Helps to Celebrate The Festive Season

The festive season is here, and the eCommerce sector, lending institutions, and retail stores make the festive season easy for customers to continue with their celebrations. To enjoy the festival to the maximum, one can do many things, including replacing their old wardrobe collection with new ones and buying electronic gadgets.

Certain underlying factors must be considered during the festive season, including your CIBIL score. Opting for a personal loan during the festival is a great idea, and for this, you must ensure that your cibil score is well-maintained. 

Let’s know more about it.

What is a CIBIL Score?

We often go above and beyond to make the festive season grand. According to statistics, 58% of borrowers in the past year bought their own homes, of which almost 45% had a cibil score of 720.

The Credit Information Bureau India Limited (CIBIL) issues a CIBIL score for every individual that indicates how worthy they are of a loan. It starts from 300 and goes up to 900. It is calculated from your past repayment records and your credit history. CIBIL score is a primary factor that decides whether you are eligible for a loan or not, and hence, it is essential to maintain a healthy score.

Must Read: Plan your finances better this Dussehra & Diwali with Personal Loan

Ideal CIBIL Score For Loan Approval

During the festive season, making purchases for gifts, renovations, new clothes, etc., require us to put aside quite some amount from our budget. For such celebrations, a personal loan becomes a great option to keep our savings intact. Personal loans are also reasonable considerations given the EMI repayment options. This is only possible when you have a decent CIBIL score, which will help you in getting a personal loan more easily. The ideal score for personal loan approval should be 750 and above.

Reasons for Maintaining a High CIBIL Score

With a healthy CIBIL score, you can benefit from several advantages, some of which are mentioned below:

1. High Loan Amount

During the festive season, expenses often rise. That’s why a loan amount that is good enough to cover all your desires without straining your budget is a good decision. For loans of high amounts, instant personal loans online can be a solution if you have a strong CIBIL score.

2. Quick Approval

There is nothing better than getting instant approval of funds, especially when you need it. A personal loan will help in gathering financial assistance from a lending institution. Your funds have a high chance of getting instantly approved if your CIBIL score is better than required. An instant approval will disburse the funds right into your savings account too.

3. Competitive Interest Rates

Interest rates depend a lot on how healthy your credit score is. A high CIBIL score helps lenders understand your ability to repay the loan on time. This helps the lender put your trust in you when they are offering you a personal loan. This is why interest rates often incline in your favour if you have a good CIBIL score.

What is Your CIBIL Score?

Expenses on high-end products like electronic gadgets or furniture are common during festive seasons. These are hefty expenses that fall under the gifting category. Therefore, to know the expenses and keep a check on them during the festive season, it is ideal to opt for a personal loan which will prevent you from exhausting your expenses. 

When you have a good CIBIL score, you become an ideal loan candidate for lending institutions that won’t hesitate to offer you a personal loan.

Must Read: How to Support the Local Economy during the Festive Season

How Does CIBIL Understand Your CIBIL Score?

Your CIBIL score depends on tons of factors. These include:

1. Repayment History 

Your repayment history contributes to 30% of your credit score. The repayment depends entirely on how well you have repaid your debt in time.

2. Credit Duration

Credit duration is the time taken to repay the credit. If your credit repayment tenure is high, your score will reflect it and vice versa. 

3. Credit Balance Inquiry

When you inquire about your credit, it impacts your score. The more inquiries you place, the more negatively your score is impacted.

4. Credit Utilisation

Having a balanced credit balance goes a long way. When you keep a check on your expense, it will be easy for you to avail of a personal loan without having to go through many hurdles. 

Conclusion

Numerous credit loans and financing options operate in the market, but personal loans offer the most prominent financial help to opt for during the festival season.

Thankfully, personal loans take care of your expenses, especially during festivities. SMFG India Credit knows the importance of personal loans during the festive season. That’s why we offer personal loan interest rates starting from 13%* per annum only.

You can check out our personal loan EMI calculator to track your EMIs so that you don’t miss out on timely payments. This festive season, cover all your expenses by applying for a personal loan online at SMFG India Credit!