When we talk about loan then the interest rate is one of the most important factors associated with it. Depending on loan type interest rates varies and applied. Every borrower wants to get a loan on the lower interest rate. But you know what your credit score plays a vital role in getting a loan. A good CIBIL score will reduce the rate of interest of your EMI.
Loans provided by banks are within certain range of interest. But this will differ for different customers depending upon their score. If you will have good CIBIL score then the bank will differentiate among borrowers and will offer a better interest to a borrower with above average score. A good CIBIL score is always considered above 750 by banks. But if you have a score below 650 then bank probably won’t prefer you as you are at the mercy of the bank.
The bank always considers customers with the poor score as a risky phenomenon and so they always try to compensate their risk by offering them higher interest rate on their loan. How CIBIL score impact your interest rate. Then it has been seen that 10 points improvement in score and your interest rate decrease by 20 BPS overall. So, all in all, your Score gives you the power to bargain with the bank.
It will be better if you will give high impact to your credit card information and consequently on the EMI. Those who wanted to turn on for this opportunity they should always try to strive to maintain an above average score. Best methods to improve your CIBIL rating is to not to be over-dependent on debt to fulfill your needs. You should approach lenders only for genuine business and personal needs. If you are already having a debt on your account then, you should strive to pay your EMIs and credit card dues on time