Credit Score and Loan Approvals
Understand How Your Credit Score Facilitates The Loan Approval Process
View the processWhat is a Loan?
A loan is an amount of money borrowed by a lender from a bank or a financial institution for a fixed period of time. A loan is essentially a debt which has to be paid to the lender with interest until the entire loan amount has been repaid.
Today, loans play an integral part in our financial and social well-being by helping us manage our finances. Be it a planned venture like an international education, a dream house, or an immediate requirement of funds for personal use, or a business expansion, loans are the best means to the end. However, it is important to know that lenders check your CIBIL Score and Report to evaluate your loan application.
The higher your score the better are your chances of getting a loan.
Be it Credit Card, Personal Loan, Home Loan, Auto Loan or Consumer Durable Loan, with your CIBIL Score and Report you can now plan your loan requirements in a more organized manner.
General Questions
What is an EMI?
An EMI, equated monthly installment, is the amount of money to be paid to the bank or lender on a monthly basis. It consists of the principal amount and the interest on said amount, equally divided by the number of months in the loan tenure. The EMI is paid on a fixed date of the month until the full amount has been repaid. Calculating your EMI in advance can help you plan your budget, because you will know exactly how much money to pay each month.
What are the different types of interest rate available?
- Fixed interest rate:
A fixed interest rate on a loan or mortgage stays at the predetermined rate for the entire term of the loan. This allows borrowers to plan their future payments. Usually personal loans and credit cards have fixed interest rates. - Floating interest rate:
A floating interest rate fluctuates with the market or along with an index. Floating rates are usually offered for home loans; the prime lending rate or the base rate is used as a basis for calculating the floating rate and the interest rate charged is the prime interest rate/base rate plus a certain spread (as charged by the credit institution).
Document Checklist
| DOCUMENTS REQUIRED | PERSONAL LOAN | CREDIT CARD | AUTO LOAN | HOME LOAN |
|---|---|---|---|---|
| Latest Credit Score & CIR* | ||||
| Bank Statement | ||||
| KYC docs (identity, signature & address proof) | ||||
| Registration Papers | ||||
| Income Statement (such as salary slip) | ||||
| Property Papers | ||||
| Last 3 years IT return | (for self-employed only) |
(for self-employed only) |
* This is an indicative list and may differ from lender to lender.
Loan Eligibility Calculator
Click here to check your loan eligibility and EMI calculator