How much CIBIL score required for personal loan?

 

For a personal loan in India, the CIBIL score plays a crucial role in determining your eligibility, as a good CIBIL score required for personal loan. Here's a breakdown of the score ranges and their implications:

1.    750 and above:
This is considered as the most preferred score, as CIBIL score above 750 is the best CIBIL score required for personal loan. Lenders usually offer the best interest rates, and you are more likely to get approved for a personal loan with favourable terms.

2.    700 to 749:
This is also considered as a good CIBIL score, as score up to 750 is also considered as a good CIBIL score required for personal loan, and you have a high chance of loan approval from the lenders. You may get competitive interest rates, though not as same as an individual with a CIBIL score above 750.

3.    650 to 699:
This is the average score of an individual. While you can still get a personal loan, the interest rates may be higher, due to this score or according to the lender’s terms and conditions, and you might have to provide additional documentations or collateral or the lender may ask for someone to guarantee for your personal loan.

4.    550 to 649:
This is considered as below-average score. Getting a personal loan with this score range is tough, and if approved, the loan terms may not be on your favour. Lenders may charge higher interest rates and impose strict conditions; lenders might also charge you to give something for any mortgage, which is more valuable than the loan amount.

5.    Below 550:
This is considered a poor score, this is not considered as a CIBIL score required for personal loan and it’s quite difficult to get a personal loan with such a score. 

If you do manage to get approved, the interest rates will likely be very high, and you might be required to provide additional guarantees, such as a co-applicant or collateral.

Key Points:

• A CIBIL score of 750 or above is typically required for easy approval and low-interest rates.
• Lenders also consider other factors, such as your income, employment stability, existing debts, and repayment history, in addition to your CIBIL score.

If your CIBIL score is below 750, you can work on improving it by paying off existing debts, avoiding late payments, and maintaining a good credit utilization ratio to increase your chances of getting approved for a personal loan.