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If the loan defaults i.e. is not repaid on time, your CIBIL score gets spoiled. For example, if a child gives an examination and does not give the paper properly then he does not get good marks. Later, due to the same low marks the child is not able to get admission in a good college. The same situation happens when a loan is taken and it defaults. If you do not repay the loan, you get the notoriety of default, which spoils your CIBIL score. Next time you go to a bank to take a loan, you will not get the loan and even if you get it, it will be at a high interest rate.
Now the question is whether the CIBIL score keeps deteriorating from birth to birth. Is there no scope for any patching or improvement in this? If this were the case then people would probably never be able to repay the loan. There must be some scope so that the way forward can be opened and some loans can be obtained.
Understand with this example
Let us understand CIBIL Score Fund with a simple example. Suppose you took a loan from a bank to build a house. Initially you kept paying the loan installments but suddenly the lockdown was imposed and your business got ruined. In such a situation, you have no option but to stop the installment. As soon as the installment stops, the bank puts you in the default category.
Later the financial situation improved and you repaid the remaining installment amount and interest on it to the bank. This would make you think that the loss in CIBIL score will be compensated. You set your expectations right, but experts tell you that despite everything you do, the CIBIL score remains bad for at least two years. Pay the pending installment or even pay its interest, CIBIL score has not improved for two years and its loss is being seen in many financial needs.
CIBIL score error cannot be hidden
The air of Sibyl Score is such that its waves reach every corner. That means the negative ranking of your CIBIL score reaches every bank and finance agency. Next time you go to a bank or finance company to take a car loan, they will immediately know your negative score. In such a situation you will not get a loan. Even if a loan is available in Chirauri and Muravat, its interest rate will be charged at a higher rate. Then you will be well aware of the importance of CIBIL Score.