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Minimum CIBIL Score Required for a 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.

Why is CIBIL Score Important for a Business Loan

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.

How Your Credit Score Impacts Your Eligibility for a Business Loan

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:


Likelihood of Approval of Business Loan Application

800 or above

Very likely

750 - 800

Fairly likely

650 - 750

Can be approved depending upon other factors

Less than 650

Very unlikely

FAQs on CIBIL Score for Business Loan

How to check CIBIL score for Business Loans?

You can check your CIBIL score on the official website of TransUnion CIBIL. You first need to register on the website and provide a few details including your PAN and date of birth. Checking your CIBIL score once a year is free, you need to opt for one of the subscription plans if you wish to check more frequently.

What is a good CIBIL score range to get a business loan?

A CIBIL score of 750 and above (ranging from 750 to 900) is considered good for getting a business loan.

How to get a business loan with a low CIBIL score?

While it might be difficult to get a business loan with a low CIBIL score, if you have a solid business plan, the bank/NBFC might still approve your application even with a low CIBIL score. If you already have an existing relationship with the bank/NBFC, the chances of approval of your loan will improve further.

Does CIBIL score affect business loan eligibility?

Yes, the CIBIL score of the business owner directly affects their eligibility to get a business loan. The higher the CIBIL score, the better the chances of approval of the loan application.

How to avail a business loan without a CIBIL score?

Some banks and NBFCs might offer you a business loan even without a CIBIL score if you have a solid business plan. You may also consider government schemes like Mudra Yojana to meet your working capital needs or to expand your business.

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