100 Million First Time Borrowers To Apply For a Loan Every Year: Cibil

100 Million First Time Borrowers To Apply For a Loan Every Year: Cibil

Lenders sanction loans based on a number of criteria that borrowers must fulfil to get loans. A key criterion that must be met by a borrower is to have a credit score. Based on this, borrowers see fit to grant/reject a loan. The credit score is also known as a CIBIL score.

What is a CIBIL score?

A CIBIL score/credit score is a number that acts as a summary of your credit profile. This takes your financial history and current financial health into consideration. A CIBIL score is also accompanied by a report generated by the Credit Bureau of India Limited (a subsidiary of TransUnion CIBIL). The CIBIL score is a three-digit number, falling in the range of 300-900. The higher your CIBIL score is, the better your chances of getting a quick and easy loan. Typically, an ideal CIBIL score accepted by banks and NBFCs is 650.  How to check CIBIL score is something you should know, and you can learn about this, plus check your score online at Finserv MARKETS.

The Purpose of CIBIL Scores

A CIBIL score lets lenders know the following:

  • Credit Profile – Your credit profile indicates your creditworthiness and ability to repay loans.
  • How to Calculate Loan Components – Based on your credit profile,  lenders can decide loan tenures, amounts and interest rates.

First Time Borrowers

It is likely that if you are applying for a loan for the first time in your life, you may not have a record of your financial status with any credit bureau. This makes it difficult for lenders to assess your financial health. In such cases, lenders may be apprehensive about lending to borrowers with little or no credit history. As a solution to this issue, credit bureaus have created solutions wherein the credit profile of a ‘new-to-credit’ or NTC customer is compared with profiles that are similar. How to check CIBIL score then becomes easy for individuals who are taking loans for the very first time.

Credit Scores for First Time Borrowers

Any borrower can go through a CIBIL score check free online. By pan number entry on the website of TransUnion CIBIL, you can quickly get to know your credit score before you apply for a loan. For borrowers taking loans for the first time, TransUnion CIBIL makes a ‘CreditVision’ NTC score service available. This score falls in a range between 101-200. Values that are nearer to 200 indicate reduced credit risk and lower default probability. Since the NTC customer base is already large and growing, TransUnion CIBIL had to come up with a way for such borrowers to get loans. According to reports, TransUnion CIBIL claims that there could be 100 million first time loan takers,  under the age of 40, every year in India.

Conclusively Speaking

As the number of first time borrowers is on the rise, the NTC score gives opportunities to anyone who wants to take a loan. If you are a first time loan taker, or want to explore any loan products, go ahead and check out Finserv MARKETS.

100 Million First Time Borrowers To Apply For a Loan Every Year: Cibil

Lenders sanction loans based on a number of criteria that borrowers must fulfil to get loans. A key criterion that must be met by a borrower is to have a credit score. Based on this, borrowers see fit to grant/reject a loan. The credit score is also known as a CIBIL score.

What is a CIBIL score?

A CIBIL score/credit score is a number that acts as a summary of your credit profile. This takes your financial history and current financial health into consideration. A CIBIL score is also accompanied by a report generated by the Credit Bureau of India Limited (a subsidiary of TransUnion CIBIL). The CIBIL score is a three-digit number, falling in the range of 300-900. The higher your CIBIL score is, the better your chances of getting a quick and easy loan. Typically, an ideal CIBIL score accepted by banks and NBFCs is 650.  How to check CIBIL score is something you should know, and you can learn about this, plus check your score online at Finserv MARKETS.

The Purpose of CIBIL Scores

A CIBIL score lets lenders know the following:

  • Credit Profile – Your credit profile indicates your creditworthiness and ability to repay loans.
  • How to Calculate Loan Components – Based on your credit profile,  lenders can decide loan tenures, amounts and interest rates.

First Time Borrowers

It is likely that if you are applying for a loan for the first time in your life, you may not have a record of your financial status with any credit bureau. This makes it difficult for lenders to assess your financial health. In such cases, lenders may be apprehensive about lending to borrowers with little or no credit history. As a solution to this issue, credit bureaus have created solutions wherein the credit profile of a ‘new-to-credit’ or NTC customer is compared with profiles that are similar. How to check CIBIL score then becomes easy for individuals who are taking loans for the very first time.

Credit Scores for First Time Borrowers

Any borrower can go through a CIBIL score check free online. By pan number entry on the website of TransUnion CIBIL, you can quickly get to know your credit score before you apply for a loan. For borrowers taking loans for the first time, TransUnion CIBIL makes a ‘CreditVision’ NTC score service available. This score falls in a range between 101-200. Values that are nearer to 200 indicate reduced credit risk and lower default probability. Since the NTC customer base is already large and growing, TransUnion CIBIL had to come up with a way for such borrowers to get loans. According to reports, TransUnion CIBIL claims that there could be 100 million first time loan takers,  under the age of 40, every year in India.

Conclusively Speaking

As the number of first time borrowers is on the rise, the NTC score gives opportunities to anyone who wants to take a loan. If you are a first time loan taker, or want to explore any loan products, go ahead and check out Finserv MARKETS.