Importance of A Credit Report

Why A Credit Report is Important in Personal Loan Sanction?

Credit report maintained by credit bureaus is a compilation of financial information that reflects how you handle your credit accounts. It forms the sole source of information about a borrower’s credit history. It usually carries a 3-digit number, called the CIBIL score. A high CIBIL score is a mandate, in case you are looking for a personal loan approval.

Considering that unsecured advances like personal loans involve no mortgaging of collateral, the score and the credit reports act as a proof of a borrower’s creditworthiness. It reflects -

1. The current level of indebtedness – Personal loan approval is significantly dependent on one’s current financial obligations and level of indebtedness. It reflects your credit repayment capability. In case your FOIR is within 30-50%, you are liable to get a higher loan amount against a lowered rate of interest.




2. Types of credit availed – Your credit report shows the types of advances availed by you and a balanced credit mix mitigates the risks of failure in repayment.




3. Past credit performance – Timely payment of EMIs boosts your credit score and helps you gain a hassle-free approval of personal loan application.

Availing personal loan from Bajaj Finserv with a CIBIL score of 750 and above helps you enjoy the benefits of add-on features like the flexi loan facility. Under this, you can withdraw funds as and when required from a pre-sanctioned limit and pay interest only on the utilised funds. Using the flexi interest-only loan EMI calculator, you can calculate the EMI amount in advance. You can choose to pay interest-only EMIs for the initial part of the tenor as per your convenience.

The above-mentioned points are indicative of your financial track record and hence, reflect your creditworthiness. This criterion is considered while you apply for a personal loan. Following this, you can utilise the sanctioned amount to meet various expenses.

Personal Loan Part-Prepayment and Foreclosure Charges

When is it a good idea to apply for a Personal Loan?

How to Get a Personal Loan?

How to Check Bajaj Finserv Personal Loan Account Statement?

How to Track Bajaj Finserv Personal Loan Application Status?

What Are the Things to Consider Before Applying For a Personal Loan?

How to Improve Your Chances of Getting Approved For a Personal Loan?

What Are the Do’s and Don’ts While Taking a Personal Loan?

When Should You Take a Personal Loan?

What Is the Bajaj Finserv Moratorium Period in Personal Loan?

What is Personal Loan Amortization Schedule?

What is Loan Repayment and How it Works?

What is the Difference Between Co-Borrower and Co-Signer

What is an Unsecured Loan?

What are the Types of Unsecured Loans Available in India?

What is Prepayment Penalty on Personal Loan?

How to Refinance Your Personal Loan?