Your Credit Score is one of the leading factor which almost all financial institutions take into consideration while handling loan requests. CIBIL maintains financial data of every individual and generates report on request. CIBIL score ranges from 300 to 900, higher the score of yours, better are the chances for you to get the loan. As higher score reflects good financial record.
As per Arun Thukral, MD cibil if you have good financial background and holds a good credit score then you can even bargain with the banks to offer lower interest rate for loan. Although most of the banks do not publicize this but having good credit score makes you eligible for some sought of special benefits over others. Other than lower interest rate some banks either waive off prepayment charges or processing fee.
While applying for loan if you find your bank is not offering you any such benefit it is better to approach another bank.
As an individual can get his/her credit score directly from the CIBIL it is always better to know your credit score before applying for loan as it helps you ensure your loan approval as well as give you scope to negotiate with the lender.
Source :- ET