Credit
Credit Inquiry
pronounced: [C-r-e-d-i-t- -I-n-q-u-i-r-y]
A record created when a lender checks an individuals credit report to evaluate loan or credit card applications.
Multiple hard inquiries within a short period can temporarily lower credit scores.
Example
Ravi applies for a home loan. His CIBIL score is 720 — considered "fair". With a score above 750, he would get a loan at 8.5% p.a. Instead, the bank offers 9% p.a. A 20-year ₹50 lakh loan at 9% costs ₹44,986/month vs ₹40,680/month at 8.5% — ₹4,306 more every month.
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Last updated: 21 May 2026