CIBIL Score

A CIBIL Score is a three-digit numeric credit score ranging from 300 to 900 — generated by TransUnion CIBIL (Credit Information Bureau India Limited), India's oldest and most widely referenced credit bureau — that summarises an individual's creditworthiness based on their credit history and current credit obligations. A higher CIBIL score indicates a stronger credit profile and lower default risk. Scores above 750 are generally considered excellent and attract the most favourable loan terms, while scores below 650 may result in loan rejection or higher interest rates. The CIBIL score is calculated from credit bureau data including: payment history on existing loans and credit cards (on-time payments improve the score; defaults and late payments damage it), credit utilisation ratio (the proportion of available credit being used — lower is better), credit mix (having a diverse portfolio of secured and unsecured credit), credit enquiries (multiple hard credit pulls in a short period reduce the score), and length of credit history. For Indian investors, maintaining a high CIBIL score is important not only for personal loan and home loan approvals but increasingly for investment-related facilities such as Loan Against Shares (LAS), Margin Trading Facility (MTF), and overdraft facilities against mutual fund holdings.