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CIBIL Score is an important parameter that a lender looks into when he/she receives your personal loan application.  A high credit score can increase your chances of loan approval, whereas a low score can make the process challenging. 

Minimum CIBIL Score for a Personal Loan

The minimum CIBIL score required for a personal loan is between 720-750. If you have a CIBIL score of 750 or above, the lender will think of you as a creditworthy individual who can pay off his/her personal loan obligations as per the payment terms. 


If you have a CIBIL score that is within a range of 651-750, you may still get a loan, but chances are that it may attract a higher interest rate and you may have to repay it over a shorter repayment tenure. If your CIBIL score is below the 650 mark, it will be very difficult for you to get a personal loan. Chances are that the lender may even reject your personal loan application if that is the case.

Why is a CIBIL Score Important for a Personal Loan

In simple terms, a good CIBIL score for a loan is essential because it determines your repayment ability, which the lenders assess before approving your application. To sum up, lender benefits from having a minimum CIBIL score requirement in the following ways:


  • Determine a loan cap or the maximum amount you can borrow

  • Determine the interest rate at which to approve the loan

  • Assess your creditworthiness 

However, you can still avail an instant personal loan for a low CIBIL score. Here, the lender may grant you a loan at a higher interest rate and a lower sum than what you requested in your application. 

How Your Credit Score Impacts Your Personal Loan

Your CIBIL score unquestionably impacts your personal loan approval the most. In fact, several things in connection to your personal loan depend on the range your CIBIL score is in. Given below a table to give you an idea of how a CIBIL score in different ranges affects your chances of availing an affordable loan. 

CIBIL Score Range 

Loan Approval Probability


High. As any lender considers a CIBIL score above 750 a good score. A score in this range means that you have commendable financial discipline and can make timely repayment. 


Probable. Although a CIBIL score in this range is not ideal, most lenders will give you a personal loan if your score is in this range. However, with a CIBIL score in such a range, you may get the same at a high interest rate and/or with a shorter loan repayment tenure.


Low. A CIBIL score in such a range is a sign of credit unworthiness and financial indiscipline. A CIBIL score in such a range may also cause your loan application to get rejected. In such a scenario, the only way you can perhaps get a personal loan is by either offering collateral, getting a guarantor on board or taking a Loan Against Property (LAP).

Factors Affecting Credit Scores for Personal Loan

Many factors affect credit score, they can either positively or adversely impact credit ratings, here’s a list of some of those factors:

1. Positive influences on credit scores

  • Paying credit card bills on time

  • Timely repayment of loan EMIs

  • Settling the total outstanding debt, not simply the minimum amount owing

2. Negative influences on credit scores

  • Late or non-payment of loan EMIs and credit card bills

  • Using credit cards to the maximum or more than 30% of the credit limit on a regular basis

  • Paying only the minimum amount due on credit cards; the remaining balance is still regarded as unpaid

  • Having an excessive amount of credit, particularly unsecured credit

How to Improve Your CIBIL Score for a Personal Loan

Some of the ways in which you can improve your CIBIL score are as follows:

  • Pay Your Debts on Time:

Your repayment history is one of the significant factors impacting your credit score. Defaulting or late payment can negatively affect your CIBIL score. As a result, repaying your debt on time is vital in maintaining and improving your CIBIL score. Opt for reminders from lenders or set reminders yourself to ensure that you make repayment on time.


  • Watch your Debt-to-Income ratio:

Your debt-to-income ratio refers to the amount of debt you have against your income. Suppose your is ₹50,000 and your debt is ₹20,000, then your debt-to-income ratio is 40%. This is an essential factor in your credit score because it shows how well you can manage your current debt and whether you have enough room for new credit. 

As a result, you should aim to have a lower ratio. Generally, you should maintain your debt-to-income ratio at 40%. If you want to lower your ratio, you can try prepayment or foreclosure of your debt account. 

  • Keep a Low Credit Utilisation Ratio:

Unlike debt-to-income, this ratio refers to the total credit you have used against the total credit limit. So, if you have used ₹30,000 from a credit limit of ₹90,000, your credit utilisation ratio is 30%. 

This ratio affects your credit score as it implies how frequently you need to use credit. A frequent dependency on credit suggests that you may either be in a debt trap or unable to manage your current finances. As a general rule of thumb, you should keep this ratio under 30%.

  • Maintain a Healthy Credit Mix:

A credit mix is a ratio of secured to unsecured credit that you have availed. If the number of unsecured credit accounts outnumbers the secured ones, it may imply that you are a credit-hungry person, negatively affecting your CIBIL score.

Given this, you must consider taking collateral-backed loans/credit cards every now and then to increase your credit score and keep it above the acceptable range. Complete repayment of secured credit shows that you have a good handle over your finances.

  • Space Out Credit Applications:

When you apply for a loan/credit card, the lender checks your CIBIL score. Such inquiries are known as hard inquiries. Every time a hard inquiry is registered on your profile, it causes a dip in your CIBIL score. 

If you apply for loans/credit cards too many times in a short span of time, it shows you are credit hungry resulting in a lower credit score. Hence, if you want to improve and maintain your CIBIL score, try restricting the number of times you apply for credit.

Things to Keep in Mind Before Applying for a Personal Loan

Prior to submitting an application for a personal loan, you should be aware of the following:

  • Compare Personal Loan Options:

Several lenders will be willing to offer personal loans at competitive interest rates and with a variety of repayment terms. Different interest rates can mean different borrowing costs. As a result, you should compare all options and find the most affordable option.

  • Check Your CIBIL Score:

When you submit a personal loan application, the first thing that a lender will check is your CIBIL score. You only stand a decent chance of getting a personal loan if your CIBIL score is above 750. Hence, you must always check your CIBIL score before applying to ensure a seamless application.

  • Consider Add-on Charges/Fees:

In addition to your standard interest, many lenders also levy other kinds of charges on you. Most commonly, they will levy a processing fee, a prepayment/ foreclosure charge and late penalty fees. These add up to your total cost of borrowing, and hence, you must look into all such costs attached before applying.

  • Reduce Your Credit Utilisation Ratio:

If your credit utilisation ratio is above the 40% mark, you must try to get it down before applying for that personal loan. One way to do it is by prepaying your loans/credit card debts ahead of the repayment tenure maturity. Another way to do so is by getting a secured credit card in your name and increasing the available limit.

  • Avoid Applying for Credit Frequently:

If your personal loan/credit card application has already been rejected by a lender, applying for credit shortly after that is not going to do you any favours. So, if you have already applied for and been denied credit once recently, wait for at least 2 months before reapplying for a personal loan.

FAQs on CIBIL Score for Personal Loan

You can check your CIBIL score for a personal loan through the official CIBIL portal. You are entitled to one free CIBIL report every year. Alternatively, you can check your CIBIL score via Bajaj Markets.

Most lenders have a minimum CIBIL score requirement between 720-750. However, this may vary for each lender, so you should check the lender’s website before applying.

Some lenders offer a personal loan with low CIBIL score and so check the minimum requirement on their website. But you will get the loan at a higher interest rate, and chances are that you will get a lower amount. Additionally, you may be required to repay the same over a shorter loan repayment tenure

Yes, your CIBIL score definitely affects your personal loan eligibility. A higher CIBIL score increases your chances of availing affordable credit easily and vice-versa. If your CIBIL score is 750 or above that, chances are that you will be granted a personal loan instantly.

Availing a personal loan with this CIBIL score may be challenging. However, you may still be able to get one if you have a long-standing relationship with the bank or get a guarantor on board. Alternatively, you can also try to get a Loan Against Property (LAP) if none of the previous two options work out for you.

Yes, but it depends on the lender you apply with. Additionally, availing an instant personal loan with low CIBIL score may result in you paying a higher interest rate and/or having a shorter payback period.

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