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Know the minimum CIBIL Score for MSME loans or business loans and how to improve your eligibility even with a low score.
Your CIBIL score is a key factor lenders consider when evaluating business loan applications. A strong score can unlock faster approvals, lower interest rates, and higher loan amounts. Even with a lower score, there are ways to improve your eligibility and secure funding.
Your CIBIL score for a business loan can influence the loan offers you receive, including interest rates, loan amounts, and approval chances. You can compare these details across multiple lenders available on Bajaj Markets to choose an option that aligns with your business needs and repayment capacity.
Here are the detailed offerings:
| Available Offerings | Maximum Loan Amount | Starting Interest Rate | Maximum Loan Tenure | Processing Fees |
|---|---|---|---|---|
80 Lakhs |
14% p.a. |
96 months |
Up to 4.72% (Inclusive of applicable taxes) of the loan amount |
|
50 Lakhs |
18% p.a. |
42 months |
Up to 2.5% of the loan amount |
|
2 Lakhs |
29.5% p.a. |
30 months |
Up to 2% |
|
35 Lakhs |
19.2% p.a. |
36 months |
Up to 3% of the loan amount + GST |
|
30 Lakhs |
22% p.a. |
36 months |
Up to 3% of the loan amount + GST |
|
30 Lakhs |
18% p.a. |
36 months |
3% to 4.25% |
|
₹10 Lakhs |
22% p.a. |
36 months |
3% to 4% of the loan amount + GST |
|
₹10 Lakhs |
22% p.a. |
36 months |
Up to 4.72% (Inclusive of applicable taxes) |
|
₹75 Lakhs |
15.5% p.a. |
60 months |
Up to 2% + GST |
|
₹35 Lakhs |
20.5% p.a. |
36 months |
1% - 6% |
|
₹50 Lakhs |
16% p.a. |
72 months |
Up to 3% of the loan amount |
Disclaimer: The above-mentioned details are subject to change at the lender’s discretion.
The minimum CIBIL Score for MSME loans or business loans can vary; however, lenders typically prefer a score of 750 or higher. Certain lenders may accept applications with a credit score of 650 or higher, subject to factors like business profitability, financial records, and the presence of collateral.
Refer to the following table to understand how your CIBIL score affects your eligibility for business financing:
| CIBIL Score Range | Business Loan Approval Probability |
|---|---|
750 - 900 |
Excellent score. High approval chances with the best interest rates and flexible terms. |
700 - 749 |
Good score. Likely to get approved with favourable terms. |
650 - 699 |
Average score. Eligible for loans, but terms may be slightly stricter. |
550 - 649 |
Low score. Approval is possible, but expect higher interest and shorter tenures. |
300 - 549 |
Poor score. Approval is unlikely; focus on improving your credit health first. |
Below 300 / NH |
No credit history. Build your credit profile before applying. |
Your business loan CIBIL score reflects your credit history, repayment behaviour, and overall financial reliability. Lenders use this score to assess how likely you are to repay the loan on time. Maintaining a strong score improves your chances of approval and helps you secure higher loan amounts on better terms.
Timely repayment of existing loans and disciplined debt management are key to maintaining a healthy score. A strong credit profile can also result in lower interest rates and more flexible repayment options.
Lenders typically use your CIBIL score in the following ways:
Credit risk assessment
Lenders evaluate your score to understand the risk of default before approving your application
A higher score can help you get lower interest rates and better loan terms
Your score plays a key role in determining whether your business loan application is approved or rejected
The minimum CIBIL score for a business loan can vary based on several factors that lenders use to assess your creditworthiness and risk profile. These factors help lenders decide your eligibility, loan terms, and approval chances.
Here are the key factors:
Each financial institution sets its own rules and limits for assessing credit risk. These policies play a significant role in determining the minimum CIBIL score required for approval.
During periods of economic slowdown or uncertainty, lenders may increase their minimum score requirements. This precaution helps reduce the risk of defaults in challenging market environments.
Higher loan amounts or longer repayment periods increase the risk exposure for lenders. Consequently, borrowers seeking higher amounts or extended tenures are expected to maintain stronger credit scores.
Including co-signers with strong credit profiles can enhance your loan application. It provides additional assurance to lenders and may result in quicker and smoother approval.
If you have a low CIBIL score, the following tips can help improve your chances of securing a business loan:
Ensure you have a consistent source of income and provide adequate proof to the lender. This helps to demonstrate your repayment capacity and assures the lender of your financial reliability.
Offering collateral such as property or gold can reduce the lender’s risk and increase your chances of approval on more favourable terms.
Adding a co-signer or guarantor with a strong credit score and stable income can significantly strengthen your loan application. Lenders take their creditworthiness and income into account, which may enhance your chances of approval.
Consider paying off existing loans and credit card balances to lower your Debt-to-Income (DTI) ratio. A lower DTI not only strengthens your loan eligibility but can also help improve your CIBIL score. Having a ratio of below 35% is generally considered ideal.
The eligibility criteria for a lower loan amount may be more lenient. This is because a lower amount poses a limited risk to the lender. This approach increases your chances of approval, even with a lower CIBIL score.
You can approach NBFCs, as they may offer loans to borrowers with lower CIBIL scores. However, these loans may come with higher interest rates due to the increased risk.
You can improve your chances by presenting detailed business plans, cash flow statements, and revenue proof. This helps demonstrate your repayment capacity and builds lender confidence.
While these tips may help you get approved, be aware that the loan terms may still include higher interest rates or shorter tenures.
To build a stronger CIBIL score, you can implement these measures:
Pay the loan instalments and credit card bills on time
Do not use more than 35% of the credit available to you
Avoid multiple credit card and loan applications at the same time
Check your credit report regularly for errors
Borrow a healthy credit mix of secured and unsecured forms of credit
You should understand how CIBIL score requirements differ between MSME loans and regular business loans before applying. This helps you choose an option based on your eligibility and credit profile.
Here are the key differences:
| Criteria | MSME Loans (Government-Linked Schemes) | Regular Business Loans |
|---|---|---|
Minimum CIBIL Score Requirement |
Flexible; may be lower or not strictly mandatory in some schemes |
Typically 650–750, depending on the lender |
Credit Assessment |
May consider business viability and scheme eligibility along with credit score |
Strong focus on CIBIL score and credit history |
Risk Coverage |
Often backed by government schemes, which reduces lender risk |
Fully based on lender’s internal risk assessment |
Interest Rates |
Usually lower or subsidised under specific schemes |
Market-driven; may vary based on risk profile |
Approval Flexibility |
Higher flexibility for small businesses and first-time borrowers |
Stricter approval criteria based on creditworthiness |
Documentation |
Requires business proof, MSME registration, and scheme compliance |
Requires financial documents, ITRs, and bank statements |
Reviewer
A CIBIL score of 750 or above is generally considered ideal for securing a business loan.
You can check your CIBIL score for free on Bajaj Markets. You can also visit the official website of TransUnion CIBIL to check your score or use their mobile app, CIBIL® Score & Report.
If you have a well-prepared business plan, the lender may approve your application even with a low CIBIL score. Additionally, having an existing relationship with the lender may further enhance your chances of approval.
Yes, the CIBIL score of the business owner affects their eligibility to get a business loan. The higher the CIBIL score, the better the chances of approval.
Yes, securing a business loan with a low CIBIL score is possible. However, lenders may offer such loans at higher interest rates or lower loan amounts, or require collateral co-applicants.
Yes, the minimum CIBIL score for MSME loans or business loans varies across lenders. Some may accept scores as low as 650, while others prefer 750 or above. This depends on factors such as loan type, collateral, and repayment terms.
The minimum CIBIL score for an MSME loan can vary depending on the lender and scheme. In many cases, a score of 650 or above is preferred. However, some government-backed MSME schemes may have flexible requirements and may consider applications with lower or even no credit history, based on business viability and documentation.
Yes, you may be able to get a business loan without a CIBIL score in certain cases. Some lenders, especially NBFCs and fintech platforms, consider alternative factors such as your business performance, cash flow, bank statements, and GST records. This is common for new-to-credit applicants or small businesses. However, such loans may come with stricter terms or higher interest rates.
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