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Know the minimum CIBIL score required for personal loan approval and how it affects your cost of borrowing.
Last updated on: Jul 04, 2026
A high CIBIL score is a marker of your creditworthiness. An ideal CIBIL score for a personal loan application may differ as per the lender policies. However, within the range of 300 to 900, a score above 750 is considered excellent, allowing you to get unsecured loans, such as a personal loan, quickly and at favourable terms.
With a good score, you may also receive pre-approved personal loan offers from lenders. Such offers make applying for funds easier, as you may not be asked for additional documents. You may even get a personal loan if your credit score ranges between 650 and 749, albeit with a slightly higher rate of interest. Thus, your score is one of the factors that affects the terms and the funds you can get.
By checking your CIBIL score before you apply for a personal loan, you can assess your eligibility beforehand. On Bajaj Markets, you can check your score free of charge and make informed decisions.
Since a personal loan is an unsecured credit facility, financial institutions do not have any collateral to fall back on if you do not pay your EMIs on time. This makes a good CIBIL score more important for lenders when evaluating your loan application. It allows them to understand your credit health and assess the probability of a default.
Here’s how the score impacts your borrowing journey:
By maintaining the best CIBIL score for loan applications, you may get a higher loan amount even without collateral. Financial institutions are more likely to trust a borrower with a score falling in the range of 740 to 800 and above to repay a personal loan responsibly. So, with a higher score, you may be able to negotiate your desired loan amount.
Getting an instant personal loan with a CIBIL score of 740 and more is easier. A high score increases your creditworthiness and allows lenders to make faster decisions when checking your loan application.
Meeting or exceeding the minimum requirements for the CIBIL score for a personal loan can help you get the most competitive interest rate. This helps you reduce your loan EMIs, which makes repayment more comfortable.
You can get a personal loan for long or short durations, usually between 3 months and 8 years. With a high credit score, lenders are likely to approve a longer tenure, which makes repayment more comfortable for you. The exact tenure options depend on the financial institution you are applying for, so it is best to check before you apply.
Here are the various CIBIL score ranges and what they generally mean for the likelihood of personal loan approval:
| CIBIL Score Range | Probability of Loan Approval |
|---|---|
300 - 499 |
Application is likely to get rejected due to poor score, as it indicates a higher risk of default |
500 - 649 |
Application may be approved by a few financial institutions but with less favourable terms |
650 - 749 |
Application is likely to be approved by many financial institutions as the score reflects low risk and better credit behaviour |
750 - 900 |
Highest chances of approval from top financial institutions with competitive terms due to minimal risk |
Different scores can result in varying personal loan terms from lenders. Let us understand this with an example. See the table below to know the possible consequences assuming that Riya applies for a personal loan. Suppose Riya has different CIBIL scores at different stages in her life and applies for a loan amount of ₹20,000.
| Riya’s CIBIL Score | Probable Interest Rates Offered | Probable Approval Timeline and Term |
|---|---|---|
640 |
High interest rates that go up to 16% p.a. |
|
700 |
Moderate interest rates of nearly 15% p.a. |
|
760 |
Most competitive interest rates of up to 14% p.a. |
|
Disclaimer: The example given above is for illustrative purposes only, as loan eligibility and terms depend on other parameters as well.
This example makes it clear that with a good credit score, you can get:
A higher loan amount
A more competitive rate of interest
A longer tenure
Quicker approval and disbursal of the loan amount (subject to the lenders’ policies)
Your CIBIL score for a personal loan can influence the offers you receive. Here is a comparison of interest rates, loan amounts, and repayment tenures across lenders available on Bajaj Markets:
| Available Offerings | Starting Interest Rate | Max. Loan Amount | Max. Tenure | Processing Fee |
|---|---|---|---|---|
10% p.a. |
₹55 Lakhs |
108 months |
Up to 2% of the loan amount |
|
13.99% p.a. |
₹10 Lakhs |
60 months |
0% to 6% of the loan amount |
|
12% p.a. |
₹25 Lakhs |
60 months |
3% to 5% of the loan amount |
|
14.5% p.a. |
₹10 Lakhs |
60 months |
Up to 5.1% + GST |
|
12% p.a. |
₹10 Lakhs |
60 months |
Up to 3.93% of the loan amount (Inclusive of taxes) |
|
14% p.a. |
₹5 Lakhs |
60 months |
1.10% - 1.50% of the loan amount + GST |
|
18.96% p.a. |
₹2 Lakhs |
24 months |
Up to 3% of the loan amount + GST |
|
12% p.a. |
₹15 Lakhs |
48 months |
1% onwards |
|
12% p.a. |
₹5 Lakhs |
36 months |
2% to 6% of the loan amount |
|
14% p.a. |
₹5 Lakhs |
36 months |
2% to 3% of the loan amount + 18% GST |
|
18% p.a. |
₹1 Lakh |
12 months |
2% to 4% of the loan amount |
|
1.33% p.m. |
10 Lakhs |
60 months |
2% to 5% of the sanctioned amount |
|
10.99% p.a. |
40 Lakhs |
72 months |
2% to 2.5% of the loan amount + GST or ₹500 + GST (whichever is higher) |
|
12.75% p.a. |
₹5 Lakhs |
48 months |
1.50% to 4.50% of the loan amount |
|
15.95% p.a. |
10 Lakhs |
60 months |
Up to 3% of the loan amount |
|
14% p.a. |
₹4 Lakhs |
24 months |
2% to 12% of the loan amount |
|
17.25% p.a. |
₹6 Lakhs |
60 months |
₹50 to ₹200 + 18% GST (maximum APR of 48%) |
|
18% p.a. |
₹5 Lakhs |
12 months |
Starts from 2% of the approved loan amount |
|
16% p.a. |
₹5 Lakhs |
36 months |
3% of the loan amount |
|
6% p.m. |
₹1.5 Lakhs |
90 days |
3%-10% |
|
17.99% p.a. |
₹5 Lakhs |
48 months |
3%-5% |
|
16% p.a. |
₹5 Lakhs |
36 months |
Up to 5% + applicable taxes |
|
23% p.a. |
₹5 Lakhs |
36 months |
A fee ranging from 2.5% to 4% of the loan amount |
|
Branch Personal Loan |
16% p.a. |
₹2 Lakhs |
36 months |
3.50% |
FatakPay Personal Loan |
18% p.a. |
₹5 Lakhs |
48 months |
2% – 6% |
*Disclaimer: The mentioned details are subject to change at the lender’s discretion.
Different lenders set their own minimum CIBIL score requirements for personal loans. Below is a comparison of the minimum score needed to apply across lenders available on Bajaj Markets:
| Lender Name | Minimum Credit Score |
|---|---|
Bajaj Finance Limited |
650 |
FatakPay |
650 |
Branch International |
650 |
Kotak Mahindra Bank |
750 |
PaySense |
700 |
PayU Finance |
700 |
Piramal Finance |
710 |
Poonawalla Fincorp |
720 |
Prefr |
725 |
Ram Fincorp |
650 |
SMFG India Credit |
750 |
Unity SFB |
675 |
KreditBee |
As per lender’s policy |
L&T Finance |
As per lender’s policy |
moneyview |
As per lender’s policy |
mPokket |
As per lender’s policy |
Muthoot Finance |
As per lender’s policy |
Olyv |
As per lender’s policy |
Zype |
As per lender’s policy |
Bajaj Markets makes it easy for you to determine your credit health before applying for a personal loan. Follow these simple steps to get your score for free:
Click on the ‘GET YOUR SCORE’ option on this page
Enter your personal information, including your name, mobile number, date of birth, personal email ID, PAN details, and Pincode
Select your employment type and agree to the terms and conditions
Click on ‘GET REPORT’ to receive the OTP
Enter the OTP to view your credit score
You can even check your credit score through the official TransUnion CIBIL website.
Increasing your credit score is easy when you adopt the right credit habits. These include:
Pay the EMIs of any existing debts on time to build a good credit history as a responsible and diligent borrower. Follow the same pattern when it comes to your credit card bills. This is the primary way to boost your score.
By having a mix of secured and unsecured loans and repaying them on time, you showcase good credit management skills. Having an experience with different types of credit products can enhance your credit score.
By checking your score and Credit Information Report (CIR) every 3 months or so, you can monitor your credit health better. By analysing changes in your credit score, you can identify issues, such as:
Mistakes in reporting by financial institutions
Fake loans in your name
By reporting these issues and raising disputes when needed, you can increase your score and take better control of your creditworthiness.
Applying for multiple credit products at the same time can bring your CIBIL score down. This triggers multiple hard enquiries of your credit report by financial institutions and lowers your credit score.
Instead of trying your luck with various financial institutions, apply for loans and cards only if you are eligible.
By reducing your current debt, you can decrease your Debt-To-Income ratio (DTI) and increase your score. The DTI measures existing debts against your income, and a ratio of 35% or below is considered ideal.
While the CIBIL score is one of the major factors affecting your eligibility for an unsecured loan, there’s more to it. Here are some of the other considerations:
Financial institutions calculate your total earnings, be it from your salary, other sources like rent, or business. A higher income can increase your chances of getting approval on your personal loan application as long as you do not have many existing obligations.
A lower debt-to-income ratio will help you get a personal loan easily, as it means you have the ability to pay EMIs comfortably. Usually, keeping your DTI to 35% or less when applying for a new loan is ideal. However, this depends on the lender you apply to and its policies.
A stable and secure job with a well-established company can help you get faster approval on your loan application. This decreases the probability of you missing EMIs and increases your creditworthiness.
A long and sound history with a bank or Non-Banking Financial Company (NBFC) can increase your eligibility for a personal loan. Since the lender already has information related to your finances and credit profile, the evaluation process is faster.
Apart from your score, lenders also check your past behaviour with credit. By not carrying forward unpaid balances on credit cards and having a longer length of experience with credit, you can boost your eligibility.
Taking a personal loan can have both a positive and negative impact on your credit profile. If repaid responsibly, personal loans can help enhance your score.
Here is how your credit score influences your loan and further, how your liabilities impact your CIBIL score:
Meeting the lender’s requirements of the minimum CIBIL score for a personal loan is a prerequisite to qualify for financing. Financial institutions use your credit score to assess your reliability and ability to repay the loan.
Here's how it impacts the way your personal loan application is viewed and the terms you get:
Loan Approval
Having a high credit score increases your chances of getting approval on your personal loan application.
Interest Rates
With a higher score, lenders are more inclined to offer competitive personal loan interest rates. This can significantly reduce the overall cost of the loan and reduce your EMIs.
Loan Amount
A higher score may allow you to borrow a larger sum, while a lower score may limit the personal loan amount you can borrow.
Favourable Terms
You are more likely to be offered flexible repayment terms if you have a higher credit score. This could include longer repayment periods and more manageable monthly payments.
Regular and timely personal loan EMI payments can steadily improve your score. This can help you get approval for preferred credit cards and loans in the future, possibly with more favourable terms.
Be it for a medical emergency or for your home renovation, you can get financing across the stages of your life by maintaining a good score. However, taking a personal loan does bring your DTI down, and can decrease your eligibility for a new loan until you repay it.
Not repaying this loan on time or defaulting on it can also have severe consequences on your credit health. It can hurt your creditworthiness, which makes it difficult for you to get access to funds when needed.
Reviewer
One of the key factors that lenders assess when you apply for a personal loan is your credit score. It not only impacts your chances of approval but also helps you secure favourable terms. These include lower interest rates and longer repayment tenures.
The minimum CIBIL score for a personal loan can vary across lenders, as each follows its own eligibility criteria. In most cases, lenders prefer a score of at least 650 to consider your application.
However, a score of 750 or above is considered ideal. It improves your chances of quick approval, lower interest rates, and better loan terms. If your score falls between 700 and 750, you may still get approval, but often at slightly higher interest rates.
If your score is below 700, your options may be limited. In such cases, you are more likely to find loan approvals from non-banking financial companies (NBFCs), typically with stricter terms or higher borrowing costs.
Yes, certain lenders allow you to get an unsecured loan even if you do not have a CIBIL score. They generally rely on alternative means to assess your creditworthiness if you are new to the credit world. You can also apply for this loan with a co-applicant who has a good credit score.
You can get a personal loan for a salaried individual with a low CIBIL score from certain financial institutions. However, they may charge you higher interest rates to cover the risk associated with offering you funds.
Yes, you can get a personal loan for a CIBIL score of 550 or 600 from lenders that offer credit to borrowers with low CIBIL scores. However, the interest rates for these loans may be higher to cover their risk, and the repayment terms may also be stricter.
When you apply for a personal loan, lenders conduct a hard enquiry to assess your creditworthiness. It is best to avoid applying multiple times to keep your score unaffected.
No, your credit score doesn’t get affected when your personal loan gets disbursed. However, it may be affected based on how you manage repayment.
If you miss a payment, the lender reports the delay to credit bureaus like TransUnion CIBIL. Even a single missed EMI can impact your score, depending on how late the payment is made. For instance, delaying your EMI by 30 days can reduce your score by 90 to 100 points or more.
The best CIBIL score for a loan is generally 750 or above. This range is considered ideal by most lenders and improves your chances of quick approval.
If your score is above 800, you may qualify for the lowest available interest rates and better loan terms. A higher score also increases your chances of receiving pre-approved offers with minimal documentation.
Your CIBIL score directly impacts the interest rate offered on a personal loan. A higher score indicates lower credit risk, which can help you secure lower interest rates.
For example, if your score is above 750 or 800, lenders may offer more competitive rates. In contrast, if your score is between 650 and 700, you may still get a loan, but often at higher interest rates, especially from NBFCs. The exact rate depends on the lender, your income, and overall repayment capacity.
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