does personal loan affect cibil score

Yes, a personal loan directly affects your CIBIL score, either positively or negatively. Making all your Equated Monthly Instalments (EMIs) on time is crucial, as positive payment history significantly improves your score over the long term and diversifies your credit mix. Conversely, missing any payment can severely damage your credit standing. The initial application causes a small, temporary dip due to a 'hard inquiry' on your credit report. Responsible management is key to leveraging the loan to strengthen your credit profile.