Personal loans are Unsecured loans which does not require collateral. CIBIL score or Credit score will play key role to get a Personal loan or even a Credit card. TransUnion CIBIL Limited maintains credit files of Individuals and companies.
There are two important terminologies that hits our head when we think of a personal loan. They are
1) Interest rate
2) CIBIL score
Borrowers look out for financial institutions who offer least interest rates whereas lenders disburse loans based on CIBIL score. Low CIBIL score can result in rejections, multiple rejections will further drag down credit score.
Application -> Rejection -> Score down -> Application: This is a dangerous cycle where lenders assume higher risk with this kind of profiles. For a healthy CIBIL score ensure repayment on or before due date which also helps you to avoid late charges.
Is your company 5 years old?
In case if you're working in a start up/recently established company then the chances of getting a loan is very low. Financial institutions have set some standards before they offer you Personal loans. They are
1) Banks: HDFC, ICICI, IDBI, AXIS, Kotat, SBI etc.
2) Non-banking financial company(NBFC): Muthoot Finance, Bajaj Finserv, Mannapuram Finance etc.
Usually the interest rate vary from 10.99% to 24% per annum.
There are two important terminologies that hits our head when we think of a personal loan. They are
1) Interest rate
2) CIBIL score
Borrowers look out for financial institutions who offer least interest rates whereas lenders disburse loans based on CIBIL score. Low CIBIL score can result in rejections, multiple rejections will further drag down credit score.
Application -> Rejection -> Score down -> Application: This is a dangerous cycle where lenders assume higher risk with this kind of profiles. For a healthy CIBIL score ensure repayment on or before due date which also helps you to avoid late charges.
Is your company 5 years old?
In case if you're working in a start up/recently established company then the chances of getting a loan is very low. Financial institutions have set some standards before they offer you Personal loans. They are
- Company you're working in should be 5 years old.
- Are you at least 1 year old in current company.
- Type of residence(Owned, Owned by Parents/Siblings, Rented).
- Your CIBIL score.
- Your re-payment plays vital role.
1) Banks: HDFC, ICICI, IDBI, AXIS, Kotat, SBI etc.
2) Non-banking financial company(NBFC): Muthoot Finance, Bajaj Finserv, Mannapuram Finance etc.
Usually the interest rate vary from 10.99% to 24% per annum.
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