New Delhi, Nov. 24 -- Digital distribution of personal loans is rapidly gaining traction in the country. This has resulted in aspiring borrowers turning towards leading financial institutions to apply for and try to secure low-interest loans to meet day-to-day expenses. Still, a common concern among borrowers that continues to float is: Does applying for a personal loan affect your credit score?

The objective here, therefore, is to analyse and understand the influence of a new personal loan application on an individual's creditworthiness, current credit score, and their overall credit profile.

Amit Bansal, Founder, BharatLoan, says, "Applying for a new personal loan can create a brief dip in your credit score since lenders conduct a har...