Banks or NBFCs offer secured and unsecured loans to help you meet your financial requirements. However, here are some important things like how to increase your CIBIL Score, how to maintain good Cibil to consider before you apply for any type of loan:
1. Interest Rates: Different banks or NBFCs charge different interest rates on loans. The unsecured loans attract high-interest rates, whereas the secured loans have low-interest rates, as an asset is kept as collateral in a secured loan. So, you need to see which loan type is subjected to how much interest rate and also check your financial capability to repay the loan amount along with the interest.
2. Penalty Charges: If you are not able to pay your dues on time, you may have to pay some penalty for the loan default. Therefore, it is important to find about the exact details of the penalty that may be levied in case of any loan default.
3. Credit History: Before you apply for any loan, you need to maintain a good CIBIL score or credit score in order to know the prospects of getting the loan approved. A good credit score shows your ability to repay the loan amount, as well as your credit history is a record of your past payments of the debts.
4. Search for the best deal: This means you have to look for the loan amount with the lowest interest rate. The low-interest rate means the lesser cost of borrowing money from any bank or lender. You also have to check the EMI costs and loan tenor.