In the last few years, there has been a tremendous increase in the number of borrowers. The bank or NBFC first check the credit score ie CIBIL score to take a loan. This score reflects the status of the previous loan of the customer. This shows the bank about the risk. If the CIBIL score is good then the bank gives a loan easily. At the same time, if the score is reduced, then you also have to face trouble in taking a loan. This is what happened to the CIBIL, now there is one thing in the minds of the people that if we repay the loan on time, the score will remain. But it is not so.
Actually, many factors work in making your CIBIL score. In which all these things are also affected by the inquiry of loan and how many loans are taken. Let us tell you about all those factors.
1. More inquiry about loan
If you inquire or apply for more loans, it also has a negative effect on your CIBIL score. Therefore, inquire for a loan or apply only when it is very important.
2. loan amount
Another factor is the loan amount. If the loan is of small amount, then there is not much risk for the bank. At the same time, if you have taken a loan of more than 1 lakh, then somewhere it affects the CIBIL score. However, its effect is nominal.
3. Taking several loans simultaneously
If many loans are running together in your name, then it has a negative effect on your score. So try to take a loan according to the need. Even if you are paying these loans on time, the CIBIL score seems to be decreasing.
4. Do not take a loan from NBFC
This problem is very common, in fact, many people take loans from many small companies in the greed of the offer, which do not even have NBFC license of RBI. In such a situation, if a single EMI is missed for 2 or 3 days, then these companies will cause great damage to your CIBIL score. So try to apply for a loan from NBFC with a bank.
