regarding effect on cibil score using cc account

[Atharva@1909]

hey everyone I had applied for mudra loan from bob they had given me limit of 7 lakhs in the form of cash credit (CC) . disbursement is expected in coming 1 to 2 days and to be honest i have to utilize at least 3 to 4 lakhs for my business expansion . my question is does the credit utilization ratio rule ( 30%) applies here ? i mean if i use 3 to 4 lakhs but i will be paying interest on time will it affect negatively on my cibil plz help !!!

 

[akshayhs]

I'm not sure but CUR is only applicable for credit cards in my opinion. The limit definitely adds to your overall credit available anytime you are sanctioned the loans.

My belief is it shouldn't affect your score if your payments are on time.

 

[Atharva@1909]

I'm not sure but CUR is only applicable for credit cards in my opinion. The limit definitely adds to your overall credit available anytime you are sanctioned the loans.

My belief is it shouldn't affect your score if your payments are on time.

okay brother thanks for the suggestion

 

[ankushanup1]

hey everyone I had applied for mudra loan from bob they had given me limit of 7 lakhs in the form of cash credit (CC) . disbursement is expected in coming 1 to 2 days and to be honest i have to utilize at least 3 to 4 lakhs for my business expansion . my question is does the credit utilization ratio rule ( 30%) applies here ? i mean if i use 3 to 4 lakhs but i will be paying interest on time will it affect negatively on my cibil plz help !!!

yes it comes to impact cibil although negative or positive depends on lot
It's the Leverage that comes into picture most importantly than Cur% of 30 or more
so basically what multiple of your income is taken as credit is a important thing for cibil
for example if your income is 5 lakhs/yr and your credit is 10lakh then leverage is 2x /yr so higher the leverage higher the risk so cibil may be impacted negatively but there are more variables like age /nature of income/assets etc
having said that aprox 30% at max is the weightage for exposure but on time payments have much more weight so not to worry much upto certain point