What is the Co-Relation Between CIBIL Credit Score & Loan Sanction ?

CIBIL CardBhai Interaction on Loan Approval & Credit ScoreThe demand for loans in India for various products, including home and auto loans from banks and other financial institutions in India, has grown a sharp 150% since 2010, according to CIBIL. As India’s largest credit information company, CIBIL has 930 credit institutions as its members and maintains information on over 290 million consumer trades and 14 million commercial trades

What are the hit rates on CIBIL? Have they gone up?

  • Hit rates from the credit bureau have definitely gone up over the past 5 years
  • The hit rates are very good at 70% for the urban centres.

What is the Co-Relation of CIBIL Credit Score to Loan Approval ?
Many of us have asked what are the chances of Loan approval after the Banker pulls up CIBIL Credit Report and Score ?
We posed this question to CIBIL and the following chart shows Relation between Credit Score & Loans sanctions
CIBIL Loan Approval Success Rate From the above Chart it is evident that Higher the CIBIL Score [800+], easier for an Individual to get Loan Approved. If you call on the other end of the spectrum i.e CIBIL score is less than 650 then you’ll need a co-guarantor who has Solid Credit Score or a Co-Lateral to secure your loan.

Apart from CIBIL, Equifax, Experian Credit Reports and Score, the banker also wants some assurance that you have constant source of income to repay the debt obligation he’ll potentially extend. So your Salary Slip or Income Tax payment records come in handy.

You may read the detailed procedure on How Banks interpret your Credit Report / Score before Approving your Home Loan.

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