CIBIL Score - Credit Score Explained in Hindi - YouTube

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Hello, my name is Mukul

And you are welcome to the Asset Yogi channel

Where we unlock the knowledge of finance

In this video, we are going to discuss CIBIL Score

If you go to take a loan

Whether it is a personal loan, credit card loan, car loan, home loan

Or any other type of credit facility from the bank

Then bank checks your CIBIL score

I have mentioned the CIBIL score many times in my previous videos

So in this video, we will learn about the CIBIL score

I'll do a short series

We will make 3 to 4 videos about the CIBIL score

In this particular video, what is the CIBIL score?

How does it work? What is the meaning of this?

What is a low score? What is a high score?

We will understand these things

So stay tuned with the video from start till the end

So that you'll not miss any important point

And you'll understand the whole concept of the CIBIL score properly

Let's go straight towards the blackboard

Let's understand the concept of the CIBIL score. Let's take an example.

Assume this is Rahul

And he has the requirement of loan or credit card

He goes to the bank. Now maybe he requires a home loan or car loan

Both of these are secured loan

Or maybe he requires an unsecured loan

Like credit card or a personal loan

Or any other type of credit facility he wants from the bank

So the bank will say

I do not trust you

Whether you will pay us on time or not

Bank will go to the CIBIL

Which is an organization

Which maintains all the data and information

Of all the individuals and businesses

Maintains their credit history

Based on that, they assign a CIBIL score

So the bank says that tell me the CIBIL score of Rahul

So what's happening here is that

The bank wants to check the credit worthiness of Rahul before giving the loan

Why do they want to do this?

They want to do it to know the repayment history of Rahul

What type of pattern did he follow in the past?

So you will know that by CIBIL score

What is the CIBIL score? It is a 3 digit credit score assigned

To an individual and businesses

We get to know your credit worthiness by this and what is your risk potential

This means if you are a risky customer for the bank

Then the bank gets to know that too

If your score is very low

Then the bank will think that you will not repay the loan to the bank on time

So the risk for the bank increases

So basically, banks do the assessment if we talk in simple language

Whoever the individual to whom the bank lends money, will pay back on time or not

So this indicates the CIBIL score

So what is the range of the CIBIL score? The range is from 300 to 900

900 is the maximum, the higher the CIBIL score is, the greater is the benefit

All the financial institution

Shares their credit data with CIBIL

So this is one bank

And it gives the loan to the customers

The bank will share all the data with the CIBIL

In the same way, if we talk about bank 2, bank 3

All the banks in the world, world means I am talking about India

All the banks in India share their data of customers with cibil

So that they will know how many loans this customer has taken?

How many credit cards has he taken?

What is their repayment history?

All this data can be accessed by the bank from the CIBIL website

The parent company of CIBIL is Trans Union CIBIL

If we talk about today's date

Then it maintains the data of more than 600 million individuals

And it maintains the data of more than 32 million businesses in India

So let's understand how does the

CIBIL score look like?

What type of score do you get when you go to the website?

And what does that mean?

See this, I got my CIBIL score from the website

We can get it for free. I will tell you that how can we access this in the next video

See, different percentages are also assigned

Which comes in the range of 300 to 700

They are bottom 20% people bottom, 19% people

21% comes in the range of 700 to 774

In the range of 775 to 799, 21% people come in this range

In the range of 800 to 824, 20% people come in this range

19% people come in the range of 825 to 899

I think my CIBIL score is quite good

Any bank can give me a credit card or loan easily

It's not a very big task to maintain a good CIBIL score

Anyone can do it as long as you pay your EMI and credit card payments on time

Then it can be maintained very easily

On what factors does the CIBIL score depend?

First is how is your repayment history?

As I have told you if you do your payments on time

Of your EMI, credit card payments, etc

How is your credit card utilization?

So, the better the repayment history is

The better will be the CIBIL score

Credit utilization means that whether or not you have a habit of taking very much loan

If you have a habit of taking very many loans then your CIBIL score can be less

So you should keep your credit utilization a little bit low

You should keep it at a moderate range

Multiple enquiries imply

If you generate much inquiry for the loan requirement

Assume you are thinking

Of taking many loans at the same time

If you are generating many enquiries

Then it can affect your CIBIL score

You should try that your inquiries should be minimum

Do as much as you require

The fourth is the credit mix. Credit mix means if you are taking a car loan,

You are taking a personal loan, credit card, home loan

if you have taken different types of loans then it is considered good

If your credit mix is good then your CIBIL score will also be high

I will talk about all these factors in detail that how can you improve your CIBIL score

I will make a separate video on this and you can watch that video of mine

Let's move forward. So what is the benefit of maintaining a good CIBIL score?

A good CIBIL score means you will get affordable loans

You will get the best interest rates

So assume if the lowest rate of home loan is 8.5 %

Then if your CIBIL score is good let's stay it's above 750

Then you will get the lowest home loan rate

But if it goes below

800 or 750

Then your interest rate can increase

You may not get approval very easily

So lower CIBIL score means that

You will not get approval very easily and

You can get rejected also

We are talking about these scores below 700

Then it is very difficult to get a loan here

And the score above 750 is considered a good score

If we talk and your score is in this range if you are in the top 60 % of people

Then you can get a loan quite easily

So if you don't have any activity and you haven't generated a CIBIL score

Then you can get NA

NA means that you will not get a score instead you will get NA

This means there is no credit activity

You haven't used a credit card, you haven't taken a loan

In the last couple of years

And second, you can see something like NH

NH means No Credit History

No credit history means either you haven't used any credit system

You haven't taken any loan, you haven't used any credit card

Or maybe your credit history is not enough

To generate a score

So if you see NA or NH in your score

Then no need to panic

You can start by taking a small loan

Then your credit history will be made again

I think I've covered all the basic things related to the CIBIL score

In the next video

We will see how can you check your CIBIL score free of cost

How can you generate this type of report for yourself?

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