CIBIL Score

What The Hell is a CIBIL Score?

A CIBIL score is a 3-digit number between 300 and 900 that tells a bank how reliably you have paid money back before 300 = you look risky. 900 = you look safe.

Anything above 750 is treated as a good score.

You are not applying for a loan. Your score is applying for you, and it was built years before you walked into that bank.

And banks do not only use it to say yes or no. They use it to set your interest rate.

Real World Example & Calculation:
-> Take the same ₹30 lakh home loan for 20 years from the EMI post.
-> A good score gets you 8.5%. Your EMI is ₹26,035.
-> A weak score gets you 9.5%. Your EMI is ₹27,964.
-> That is ₹1,929 extra, every month, 240 times.
-> Over the full loan, ₹4.63 lakh more for the exact same house.

Same loan. Same house. Same salary.

Three digits decided that one of them pays ₹4.6 lakh extra.

Under RBI rules you get one free score and report every calendar year. Most people have never once looked at theirs.

✍🏻 Mantra Joshi

Spotted a wrong number or something out of date? Tell me and I'll fix it.