What is CIBIL?

check your free cibil score online

TransUnion CIBIL is Credit Information Bureau of India. It is the oldest and reliable credit bureau company that provide credit-related services to the members.

It was established in 2000 and collects and maintains credit information of the residents of the country, as provided by various banks and NBFCs.

The credit bureau generates a CIBIL report and CIBIL score based on the information collected from banks and NBFCs. Based on the credit score status, lenders analyse whether the loan borrower is capable of repaying the credit on time or not. This way, TransUnion CIBIL plays a vital role in India’s financial system.

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What is CIBIL Score?

Importance of Good CIBIL Score

There are many benefits of high CIBIL score, and one such is that you can avail a small business loan at lower interest rates. Well, we don’t say that you cannot avail loans for business with a bad credit score. But it is offered at high-interest rates.

best CIBIL score allows you to avail a loan at the most competitive interest rates. A high CIBIL score for a loan comes with several other advantages as well, which are as follows:

  • Increased Loan Eligibility: most lenders consider CIBIL check imperative before lending their money. If the CIBIL score is good, the loan lender would be interested in granting a loan.

  • Access to Credit Card: one of the most significant benefits of knowing CIBIL score is that it gives access to credit score with high limits.

How to Check CIBIL Score for Free?

To get free CIBIL score, follow the steps mentioned below:

  1. Log in to the official website of the credit agency to request for the credit report.

  2. Furnish all the required documents.

  3. After providing the documents and their verification, you will receive a CIR over an email.

  4. The free CIBIL score check report will be sent to you within a day or two.

What is the CIBIL Report?

CIBIL report is a document that contains all the credit history of an individual across different lenders over a period. It is a well-explained report that includes details of an individual’s credit history. It consists of the following information:

  • Individual’s personal details, such as name, gender, age, etc.

  • Employment or earning details

  • Number of hard enquiries made for all types of loans and credit card applications

  • Record of current and previous loans availed with their repayment record

  • Any defaults on the last loan

  • All the details of the settled loans

  • Credit score

  • Credit card payments and defaults

  • Total credit card limit and the amount spent (credit card utilisation)

Credit or CIBIL report provides comprehensive information on an individual’s creditworthiness. Based on this report, loan lenders decide whether or not grant a business loan.


  1. What is your CIBIL score, and how does it work?

CIBIL score ranges between 300 and 900. The best CIBIL score is 715 and above. If you repay all your loans and bills on time, credit utilisation ratio is below 30%, and don’t have more than two loans running on your name; your CIBIL score would be high.

  1. How to check your CIBIL Score?

It is effortless to check CIBIL score online. First, you need to visit the CIBIL website and then click on the free credit report. After this, create a CIBIL account and fill the required information, such as date of birth, gender, postal address, etc. Once you accept the terms and conditions, the CIBIL website will show your CIR – Credit Information Report.

  1. Does checking CIBIL score lower down the score?

No. When you check your CIBIL score, it doesn’t affect your CIBIL score. However, the score is impacted if the lending agencies check your score.

  1. Why do lenders check your CIBIL score before approving your loan?

CIBIL score is the numeric representation of the credit report of an individual. The lenders check CIBIL score to determine the financial behaviour of the borrower. It helps them ascertain that the borrower would be able to repay the loan with interest on time. 

  1. What is a good credit score to avail a business loan?

The minimum and maximum CIBIL score to avail a business loan is 550 and 900, respectively. However, if the CIBIL score is more than 715, the borrower will be able to get the loan for business on competitive interest rates.

  1. Is CIBIL score and ZIP score the same thing?

No, CIBIL score and ZipScore are not similar. While the CIBIL score it just the numeric representation of the CIBIL report, ZipScore is a broader term that includes CIBIL score, bank statement, and other financial information. ZipScore includes various factors that help increase business loan eligibility and chances to get the application approved.

  1. How can you maintain a good CIBIL Score?

To maintain a good CIBIL score, it is essential that you pay all your bills and loan EMIs on time. Besides, you also need to maintain credit utilisation ratio below 30%.

  1. Does EMI affect CIBIL score?

Late EMI payments affect the CIBIL score negatively and bring down the score. On the other hand, if you pay all your EMIs on time, it helps in maintaining a good and high CIBIL score for a loan.

  1. What reduces the CIBIL score?

If you don’t pay your EMIs and bills on time, this can reduce your CIBIL score. Besides, utilising the credit card more than 30% of its limit also impacts the score negatively. Availing more than two loans at the time also decreases the score as it shows credit hungry behaviour.

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