Personal loans refer to the unsecured loans for which no collateral has been pledged by the borrower. This may seem like a reckless mistake however, due to this point only, a borrower has to pass the minimum personal loanseligibility criteria.

The basic criteria are:

• The person should be a resident of India.
• The person’s age should be above 23 years and below 57 years.
• The person should be working in MNC, public or private company.
• The person should have a monthly salary as per the individual requirements of each state.

Moreover, once the borrower is able to pass the above-mentioned eligibility criteria, the financial institution or bank checks the CIBIL score of the person.

CIBIL refers to Credit Information Bureau India Limited. It is a credit information company. A large number, approximately 550 million, of people’s credit are managed by the company. Anyone can subscribe to CIBIL and attain regular credit reports, correct the errors and resolve any disputes with the lender.

CIBIL scores are calculated by CIBIL for the purpose of helping the financial institutions gain knowledge whether the candidate trying to procure loans, passes the personal loan eligibility criteria or not.

For such a study, CIBIL keeps a track of the borrower’s loan and repayment patterns. This helps to predict whether the borrower will be responsible and sensible towards repaying the loan. Such information is necessary for financial institutes to reduce risks and increase profits.

A well maintained CIBIL score is important to avail personal loans. The scores are calculated between 300 and 900. The scores are divided into:

• Over 750 – an excellent score
• 700-750 – a good score
• 650-700 – an average score

CIBIL scores are important not just to be qualified as a personal loan borrower, but also to attain better interest rates. As the score goes nearer 900, the interest rates given alongside are also more attractive.

For those people who have such low CIBIL scores that they are unable to attain personal loans, should first try to get their scores corrected or rectified. In order to do so, the candidate must contact the CIBIL firm. Thereafter, the candidate will need to fill and submit a dispute resolution form, and then submit a settlement letter to CIBIL.

This will help people with low CIBIL scores to rectify their mistakes and resolve disputes regarding past borrowings. Only after this, the bank or financial institutions will allow the candidate to apply for and attain personal loans.

CIBIL has slowly but surely become an important factor in deciding who should avail a personal loan. Further, it has created awareness among the procurers of the loans to not take personal loan eligibility criteria lightly. Any contract that has been signed must be fulfilled by the borrower.

CIBIL allows the people to be financially literate about the ways of maintaining and the need for maintaining a good credit score. In order to know more about the eligibility for availing personal loans and to increase your chances of availing personal loans, visit the official site of Upwards.