What CIBIL score is required for a personal loan?

Every bank or financial institution has a different “cut-off” for CIBIL scores. But generally, a good or excellent score is essential for guaranteeing an approval. You might also get approval if you have a decent CIBIL score but the interest rate might be higher in this case. A CIBIL score can range till 900. Here is a summary of the range of credit score and what they mean-

Score Range



Poor CIBIL score


Decent CIBIL score


Good CIBIL score


Excellent CIBIL score

Personal Loan CIBIL Score

Getting a personal loan is quite easy today given the advancement in technology and disruption of the digital lending space. But there are still certain criteria that you have to meet in order to get a personal loan. Apart from being a resident of India, falling in the age and income bracket, there is still one very important criteria that you need to fulfil. That is CIBIL score. A good CIBIL score is mandatory to get a personal loan although the exact score required might be different for every bank.

Checking your CIBIL score is important when you apply for a personal loan because it is the first thing that the bank will check before they approve your loan. When you check your credit score yourself, it is known as a soft inquiry. This does not have any impact on your credit score. But if the bank runs a check on your credit report, it is known as a hard inquiry. This affects your credit score negatively. So before you apply to a particular bank-

  • Check the eligibility criteria.
  • Check your credit score before you apply.
  • Figure out if you are eligible for the loan.
  • Apply only if you are eligible.
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How to ensure personal loan approval?

Whenever you are applying for a personal loan, ensure that you follow the following to ensure a quick approval-

  • Fill the application form absolutely correctly. Any wrong information that does not match with your credit report can lead to a rejection of your personal loan.
  • Check your eligibility with the bank that you are interested in. Age requirements and the salary bracket is where most people fall short. Make sure that you fulfil those criteria.
  • Maintain your credit accounts diligently. Any defaults on your previous repayments can lead to a rejection. Make sure that you make all your EMI and credit card bill payments on time.
  • Do not be dishonest on your application form. Do not forge any documents just to help you get approval because you might be banned for the rest of your life in case you are caught.
  • Do not apply to too many places at once. This leads to a lot of hard inquiries and hence affect your credit score negatively. A low credit score can be a cause of a personal loan rejection.
  • Maintain your debt to income ratio. The amount of debt you currently have should not exceed more than 50% of your salary. If this is the case, hold back from applying for a personal loan at the time since your approval chances are quite low.
  • Keep your work conditions steady. Do not change jobs too frequently. Lenders can see this as a sign on unsteady career and might see you as a risky borrower. Hence, you might not get the loan at all.
  • Ensure that your house is not blacklisted with the bank you are applying to. Someone who previously lived in your house might have been a defaulter and hence got the address blacklisted. When you move to a new place, ensure that the address is not on that list.

What to do if my credit score is bad or I don’t have a CIBIL score?

A good CIBIL score is not something you are born with. You have to build a good credit history in order to attain a good credit score. If your credit score is bad or you are new to credit, you can do the following things-

Offer collateral for a loan or get a secured credit card. This is less risky for banks hence they might give you a loan. If you are diligent with the repayments, you will eventually have a good credit score to get an unsecured loan in the future. You can also get yourself added to a responsible person’s credit card so that you can benefit from their good credit habits. Once you have built a good CIBIL score, you can apply for a personal loan.