Credit History is extremely important to avail any kind of loan. Be it personal, business or home loan, one needs to have a clear and consistent credit history to be eligible for a loan. When an individual applies for a loan, the first thing that the lender checks is the applicant’s CIBIL score. After a thorough check of the borrower’s financial history, the lender decides the loan amount and the interest accordingly. There are several benefits of having a good credit score that make the process of getting a loan extremely smooth.
Having said that, it is important to note that during the loan application process, your credit score may take a slight hit due to the bank or non-banking financial institution (NBFC) making a hard inquiry to extract your credit score. A borrower need not worry about this hit as the same will recuperate once you start paying your EMIs in a timely and consistent manner.
Here’s the major benefits of having a good credit score:
Get Top-Up Loan
If the business owner already has running loan and wants a top-up loan. The lender will first check his repayment behaviour and pattern with the existing loan. On checking, if the borrowers CIBIL score is good, the loan will be sanctioned instantly.
Easy to Get Office Space
Having a good business score will not only grant the borrower working capital loan but also the loan for expansion. The borrower can easily lease out a new office space for his business. Nowadays, the landlords rent out premium spaces only to people with good credit history. They check if the borrower is capable of paying the rent on time. So, in a way, CIBIL score is inter-connected even to get a space for your business.
SMEs are always looking for investors. Maintaining healthy business practices gives you good credit score and attracts investors. Getting investors for the business is a positive sign as it doubles the growth and income. Therefore, a good credit score is essential because it is related to every aspect of your business.
A good CIBIL score indicates that the business owner is paying his EMIs on time. This practice makes him a suitable candidate in front of all banks and NBFCs (Non-Banking Financial Company) for loans. Always remember that a good credit history is essential for the sustenance and growth of your company.
With a high credit score, you can avail a Bajaj Finserv Business Loan on Finserv MARKETS at the most competitive interest rates. What’s more? Your online business loan application can be approved under just 3 minutes and the loan amount will be credited to your account within 24 hours! So why wait? Apply for a Bajaj Finserv business loan with us, today!
Read more about CIBIL MSME Rank
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