Gold Loan and CBIL are not the appropriate terms that go with each other. CIBIL score (Credit Information Bureau (India) Limited) is the credit history of an individual, recorded by the Indian Information Bureau. This score is primarily important for unsecured loans, like Personal Loan, but as far as Gold Loans are concerned, there is no requirement for a CIBIL score. On the other hand, gold loans can impact the CIBIL score without requiring its need during the application of the loan.

There is no need for a CIBIL score in case someone is approaching a gold loan. This is so because gold loans have collateral, in simple words- there is a need for mortgaging gold assets in order to pass a gold loan. So even if the borrower fails to return the money credited the bank or NBFC can liquefy the gold and get the credit cash from there. Whereas in the case of personal loans, there is no collateral value and no assets to mortgage. Thus having a good CIBIL score serves as a confirmation that the individual will repay the credit to the bank.

Even though a CIBIL score is not required to apply for a gold loan, still a gold loan can help one improve their CIBIL score in different ways. Follow the given instruction below, in order to benefit your CIBIL score:

• Repaying within the tenure- You will be allowed to select tenure or a time period within which you have to submit your payment. For example, if you take a Manappuram gold loan and you have a tenure of 12 months, then you have to keep on paying your estimated EMI every month, before the due date. Timely repayments trigger the CIBIL score in a way that will benefit you in the future for sanction of other loans.

• Avoiding Collateral Auction- Most of the lenders in this industry are not very lenient, they might not pull you up dues to a few late EMI payments. So the best advice is to never cross the due date of EMI payments. This not only affects your CIBIL score but will also put your gold assets at stake, which you have kept as collateral.

Some other benefits of gold loans are:

• Quick Disbursal

• Low rate of Interest

• Secured type of loan

• Liquidation of gold assets

The given instructions should help one to grow their CIBIL score for other financial benefits. Although the CIBIL score does not affect the application of a gold loan there are other requirements, like KYC documents, that one will need for applying for a loan in banks or NBFCs. Further, you might also want to check the rate of interests offered by the financial institution you are getting your loan approved from.