CIBIL (Credit Information Bureau, India Limited) is a crucial aspect to verify the credibility of a borrower for a loan. Ranging between 300 to 900, it is a three-digit numeric summary of your credit and repayment history. Lenders usually consider a score less than 700 as a poor CIBIL score, which means that they may not disburse loans to such candidates. And, even if they do, you might be charged a high-interest rate on such loans.

CIBIL score is the first thing that lending institutions evaluate while reviewing the loan application. So, if you have an unhealthy score and want to increase it to avail low-interest loans in future, then taking out an instant personal loan might help you to a large extent. Let’s find out how it works. 

Benefits of personal loan for low CIBIL score

1. Multiple credit debts can take a toll on your financial health. Thus, taking a personal loan and repaying all of the previous credits at once can help you lower your CIBIL score. 
2. With a personal loan for low CIBIL score, you can consolidate high-interest debts, and get low-interest rates to pay your instalments faster. 

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Factors to consider while availing an instant personal loan 

1. After extensive research, select a lender that suits your needs and avoid multiple loan applications. 
2. Determine the amount of loan you wish to borrow. Higher the amount, more difficult it is to repay the loan. 
3. Calculate your monthly EMIs by using a personal loan calculator and make sure it is not more than 40-50% of your monthly income.

All in all, personal loans not only help to deal with sudden unexpected events but also boost your CIBIL score in the long-run.

Additional Read: A Quick Guide To Help You Boost Your CIBIL Score