CIBIL Score For Collateral-free Business Loan
One of the most important business loan eligibility criteria is the high CIBIL score. A CIBIL score, also known as credit score, is a summarised report of an individual’s payments of loans taken from banks and other financial institutions. Based on the timely payment of the credit, a CIBIL score is generated. The CIBIL score range for business loan is 300-900. The minimum CIBIL score for business loan is generally 750; the best CIBIL score for business loan is said to the number which is near to 900.
The CIBIL score information is considered to be very important and a good CIBIL score signifies timely payment of all the business loans. It is generally the first eligibility criterion that most of the banks, NBFCs, and other financial institutions apply when reviewing the borrower’s business loan application form. A number of factors can affect the CIBIL score and a low CIBIL score can simply mean rejection while applying for a business loan. But not is the case with ZipLoan.
ZipLoan understands that many factors together can affect the CIBIL score and therefore does not only follow the CIBIL score norms but have their own holistic credit evaluation process called ZipScore that calculates the creditworthiness of the borrower in a holistic fashion.
What Makes ZipScore Better than CIBIL Score for Business Loan?
ZipLoan understands that every business is unique and the limited parameters of calculating CIBIL score for business loan cannot capture all the peculiarities of such small businesses. To provide a solution to this, ZipLoan has developed its own credit evaluation process called ZipScore in order to underwrite each small business segment separately.
Removing human bias, ZipScore captures data from the qualified database only and offers real-time credit decision. The following are the points that ZipScore takes into account:
- Banking transaction
- Financial Data
- Demographic Data
- Mobile Data
- Business Web Footprints
- Identity Validation
- Credit History