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SBI Scheme: We all know how important it is to have a good CIBIL score to take a loan. In today’s time, most people fulfill their needs by taking loans. While taking a loan, banks decide whether to give you a loan or not by looking at your CIBIL score. If you have to give a loan, then at what interest rate should the loan be taken.

Let us tell you that the CIBIL score ranges between 300 and 900. CIBIL score is also called credit score. The higher the credit score, the more reliable the bank considers you as a customer. In such a situation, the loan is easily available at a lower interest rate.

On the other hand, if the CIBIL score is low then it becomes difficult to get a loan and even if you get it, the interest rate is very high. Let us tell you that if you take a home loan or any other loan to home from State Bank (SBI Home Loan), then on what CIBIL score can you get a loan at what high or low interest rate? How is the credit score decided?

There are many factors that go into determining the credit score such as loan repayment history, credit history, credit utilization ratio and credit mix etc. Apart from these, your CIBIL score is calculated from some other things such as incorrect information in your credit report, you have ever done a loan settlement in the past, you are a guarantor for someone’s loan and it is not being repaid etc. All these also affect your CIBIL score and can spoil your score.

Who prepares the CIBIL score?

Several credit bureaus issue CIBIL scores. The major ones are credit information companies like TransUnion CIBIL, Equifax, Experian and CRIF Highmark. These companies are licensed to collect and maintain financial records of people and create credit reports/credit scores based on this data. These credit bureaus evaluate customer data deposited with banks and other financial institutions such as outstanding loan amounts, repayment records, applications for new loans/credit cards and other credit- information and create CIBIL scores based on that.