CIBIL Score for Business Loan

As mentioned above, your CIBIL score can range between 300 and 900 - the higher number being better. A credit score of 750 or above is considered good and in most cases, is sufficient to get your loan application approved. That being said, your CIBIL score is only one of the many factors that determine your eligibility for a business loan. There are several other factors such as the Corporate Credit Rating (CCR) of your company, amount of capital invested, business plan, etc that significantly influence the likelihood of approval of your business loan.

Depending upon these other factors, the bank/NBFC might agree to offer you a loan even with a lower CIBIL score. However, if your CIBIL score is less than 650, it will be extremely difficult to get a business loan for your company.

When you apply for a business loan, the lender will not only check the Corporate Credit Rating (CCR) of your business but will also evaluate your creditworthiness as an individual using your CIBIL score. This is why, being an entrepreneur, it becomes imperative to maintain a good credit standing so that you do not face any problems while applying for loans for your business.

Your CIBIL score is a three-digit number ranging between 300 and 900 that indicates your creditworthiness. CIBIL score is calculated by TransUnion CIBIL, which is the most trustworthy credit bureau in the country and is based on your credit history including your repayment record, credit utilisation ratio, number of active and closed loan accounts, etc.

Your CIBIL score directly impacts the odds of approval of your business loan application. The higher your CIBIL score, the more likely it is that your business loan application would be approved. You may refer to the following table to get an idea of how the likelihood of approval of your loan application directly depends upon your CIBIL score: