Being a business owner, you must have heard about the CIBIL score. It is a three-digit numeric summary of your creditworthiness and credit history. This score is found by using the credit history on the credit report, also known as the Credit Information Report (CIR). CIBIL score ranges between 300 and 900, and it depends on how early and consistently you repay your previous loans.
The high CIBIL score represents an excellent credit history . It is used by lenders and NBFCs while accepting your unsecured business loan application and to check your creditworthiness and the likelihood of your loan on time. Higher is the CIBIL score; the better are the chances to get your loan application accepted. Check your CIBIL score with a free CIBIL score calculator and get business loans with ease.
How to Check your CIBIL Score?
Reviewing your CIBIL Score is not at all a strenuous task and thus, can be completed in just a few steps.
- Visit the official CIBIL website to initiate the process.
- Add the asked information which includes name, contact number, email address, and other additional details about PAN number. Make sure you add each detail with extreme care. Review the details entered and jump to the next step.
- Answer all questions accurately regarding your loan and credit cards. Based on the same, your CIBIL score will be calculated, and the report will be generated.
You will be suggested several paid subscriptions if you want more than just a report. You can opt for these subscriptions. However, if you are looking for a one-time free CIBIL score and report, then click on No Thanks at the bottom of the page.
- Now, you can log in to your account with an id and password that was created in step 2. After logging in, you will receive an email, and you need to authenticate yourself. Click on the link and enter OTP provided in the email. After authentication, you will be prompted to change your password.
- Once you login to the account, your details will be auto-entered by default. Review the details and enter the contact number to submit.
- After submitting the form, your dashboard will show your CIBIL score. In addition to this, you will get your credit report on the panel.
It is advised to check your CIBIL score on a regular basis. It is essential to monitor the ups and downs in your report and check the range of scores to know the chances of getting your instant business loan application approved.
Benefits of High CIBIL Score
As stated in the beginning, your CIBIL score presents your creditworthiness, which is the primary factor to be considered by banks and NBFCs while approving the loan. If a person has a good CIBIL score, then the chances of getting his loan application approved are high and vice versa.
Without further ado, let’s find out some of the significant benefits of a high CIBIL score.
- To get Loan Approvals: The first and foremost benefit of a high CIBIL score is that it can raise your chances of business loans instant approval. When you apply for the loan, lenders will check your CIBIL score, which shows your credit history and evaluate the chances of getting the loan back on time. If your CIBIL score is high, then the lender will consider you a safe candidate for a loan and accept your loan application with ease. However, if your CIBIL score is low, then your application will be directly rejected even if you have the repaying capabilities.
- For the Fast Disbursal of the Loan: Another benefit of having a high CIBIL score is that if your score is high, then there are chances of getting fast loan disbursal. If you have a good credit score and want to get a quick loan disbursal, then opt for ZipLoan where your loan gets disbursed in just 3 days.
- Avail loans at lower interest rates: An excellent CIBIL score not just helps to get fast loan approval and quick loan disbursal, but also helps you in getting a small business loan at a lower interest rate. CIBIL score allows you to fetch various benefits from the lenders, and the low interest rate on loans is one of them. Being a small and medium-sized business owner, you must know that the interest rates on different loans are generally very high. There, your high CIBIL score can make a difference. If you maintain a high rating and good credit history, then you can bargain for a lower interest rate. On the other hand, this option is not available to a candidate with a low credit score.
Steps to Improve your CIBIL Score
Now, when you are well-versed with all the benefits of the high CIBIL score, let’s get to know how to improve the CIBIL score in a few steps.
- Paying off Unpaid Dues: Your CIBIL score will be high only and only if you repay your loans at a faster rate and that too on time. So, to increase your CIBIL score, it is advised to pay off any unpaid dues and see the immediate difference in your score. Paying off your dues will positively increase credit score.
- Maintain your Credit Utilisation Ratio: Your credit card usage should be specific to certain transactions. Also, it is preferred to keep your credit utilisation ratio below 30 to 40% to avail faster loan at a lower interest rate. Moreover, if you keep your monthly expenses low, then you will see a gradual rise in your CIBIL score. Keep your utilisation percentage low by dividing your expenditure over 2 – 3 credit cards.
So, if you have a good CIBIL score and want to get business loans, then visit ZipLoan and get a loan between Rs. 1 Lakh and 5 Lakhs within minimal documentation. With ZipLoan, you can choose loan tenure as per your pocket as they are offering 3 options, i.e., 12 months, 18 months, and 24 months. Check your eligibility criteria, visit ZipLoan, and get your loan sanctioned within no or little time.