CIBIL
CIBIL stands for Credit Information Bureau (India) Limited. It is a company that acts like a big library where they keep track of all your borrowings and payments. When you borrow money from a bank or take a loan, they inform CIBIL about it. CIBIL keeps a record of how much money you have borrowed, how well you have repaid it, and if you have been paying your dues on time. Think of it like a report card for your borrowing habits.
When you want to borrow money again, the bank will look at your CIBIL report card to see how responsible you have been in the past with your borrowings. If you have always paid your dues on time, your report card will show good grades, and the bank will be more likely to give you the loan. However, if you have missed payments or been late with your payments, your report card will show not so good grades, and the banks may reject your loan application.
So, it is important to keep a good record with CIBIL by making all your payments on time and in full so that you can easily get a loan when you need it.
When you want to borrow money again, the bank will look at your CIBIL report card to see how responsible you have been in the past with your borrowings. If you have always paid your dues on time, your report card will show good grades, and the bank will be more likely to give you the loan. However, if you have missed payments or been late with your payments, your report card will show not so good grades, and the banks may reject your loan application.
So, it is important to keep a good record with CIBIL by making all your payments on time and in full so that you can easily get a loan when you need it.