Understanding the Importance of Credit Score While Borrowing a Personal Loan

When applying for a personal loan, the lender assesses your creditworthiness and history. Your credit score reflects these factors to the lender. In addition, it is evaluated based on the regularity of your payments of credit card bills and loan EMIs, the number of loan and credit card applications, and other factors. Here is all about how your credit score is essential when you borrow a loan.

What Does Your Credit Score Say to a Lender?

Credit scores come in different ranges based on the credit rating bureau. For instance, a CIBIL score ranges between 300 and 900. A score of 300-599 is considered poor and may not help you get a money loan. On the other hand, if your score is 600-749, it would be less risky. In this case, the lender usually assesses other factors like your income proof, employment history, and relationship with the lender to decide whether to offer you a loan. If your score is above 750, you stand the highest chance of getting an easy loan. This score can help you qualify for a higher loan amount and tenure, better interest rates, and other benefits.

Role of a Social Loan Quotient to Boost Your Loan Eligibility

Nowadays, you can apply for easy loans on a fintech company’s app on your Android or iOS device. A top digital lender determines your creditworthiness using an advanced credit rating system known as the Social Loan Quotient (SLQ).

The SLQ score ranges from 0 to 995 and works just like a credit score. However, it is calculated based on modern factors like your smartphone metadata and social media footprint. So, you can improve your loan eligibility in unconventional ways, like having an excellent social media presence without inappropriate behaviours like stalking. Other fundamental factors considered include your KYC details, educational qualifications, monthly salary and career experience. It becomes easier to qualify for a money loan with these simple factors.

On top of that, if you have a high credit score, you can get access to instant loans with a seamless process. Just make sure to provide genuine and authentic documents. For example, you can get an easy personal loan with a good credit and SLQ score, KYC compliance, and a minimum monthly salary of ₹15,000. Aided by a digitised process, the application, document verification, loan approval and disbursal would be completed within a few minutes.

Conclusion

A good credit score coupled with a high SLQ score can help you get a microloan starting from ₹1,000 only with flexible tenures starting from 3 months! Moreover, with an instant disbursement, the loan can help you meet various urgent cash requirements like medical emergencies, unpaid mobile bills, outstanding loan EMIs and much more.

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