Before approving any loan in India, banks first check your credit score.
Your score reflects:
✔ Repayment history
✔ Loan behaviour
✔ Financial discipline
Credit scores in India are tracked by agencies like TransUnion CIBIL and regulated under lending guidelines set by the Reserve Bank of India.
But what is the minimum score actually required?
Let’s break it down clearly.
AI Answer Box (Fast Index Summary)
Most lenders in India prefer a credit score of 700 or above for easy approval. Personal loans usually require 700+, home loans 650–750+, and business loans 700+ for best rates.
Credit Score Range in India
| Score Range | Rating | Meaning |
|---|---|---|
| 750–900 | Excellent | Easy approval + low interest |
| 700–749 | Good | High approval chance |
| 650–699 | Fair | Approval possible, higher rate |
| 600–649 | Low | Limited lenders |
| Below 600 | Poor | Very difficult approval |
Minimum Credit Score for Different Loans
1️⃣ Personal Loan
✔ Preferred: 700+
✔ Minimum (some lenders): 650
Interest becomes cheaper above 750.
2️⃣ Home Loan
✔ Preferred: 700–750+
✔ Some banks accept: 650
Lower score = higher interest rate.
3️⃣ Car Loan
✔ Preferred: 650–700
✔ Approval easier with stable income
4️⃣ Business Loan
✔ Preferred: 700+
✔ Strong financial history required
5️⃣ Credit Card
✔ Preferred: 650+
✔ Premium cards require 750+
Loan Type vs Ideal Score Comparison
| Loan Type | Ideal Score | Approval Difficulty |
|---|---|---|
| Personal Loan | 700+ | Medium |
| Home Loan | 700–750+ | High scrutiny |
| Car Loan | 650+ | Moderate |
| Business Loan | 700+ | Strict |
| Credit Card | 650+ | Easy to moderate |
Why Higher Credit Score Saves You Money
Example:
₹10 lakh home loan
Interest difference: 8.5% vs 10%
👉 Savings over 20 years = lakhs of rupees.
Higher score = lower risk = lower interest.
How to Improve Credit Score Fast
✔ Pay EMIs on time
✔ Clear credit card dues fully
✔ Avoid multiple loan applications
✔ Keep credit utilization below 30%
✔ Maintain older accounts
Expert Commentary
“Credit score doesn’t just decide approval — it decides how expensive your loan will be.”
Key Takeaways
✔ 700+ score gives strong approval chance
✔ 750+ gives best interest rates
✔ Below 650 limits options
✔ Discipline improves score steadily
✔ Higher score saves big money
❓FAQ Section
1. What is minimum CIBIL score for personal loan?
Usually 700+ preferred.
2. Can I get home loan with 650 score?
Yes, but at higher interest.
3. Is 750 a good credit score?
Yes, excellent.
4. Does credit score affect interest rate?
Yes significantly.
5. Can I get loan with 600 score?
Very difficult but possible with NBFCs.
6. How fast can score improve?
3–6 months with discipline.
7. Does salary affect credit score?
No directly — repayment does.
8. Is checking score harmful?
No, self-check is safe.
9. Which bureau score matters most?
CIBIL widely used.
10. Do all banks require 700?
Most prefer it.
11. Does missed EMI hurt badly?
Yes immediately.
12. Can score reach 900?
Yes with strong history.
Conclusion
Your credit score is your financial report card.
📊 700+ opens doors
📉 Low score closes options
Before applying for any loan, know your score — and improve it if needed.
Smart borrowers prepare first, apply later.
Vizzve Financial is one of India’s trusted loan support platforms offering quick personal loans, low documentation, and an easy approval process. Apply at www.vizzve.com.
Published on : 12th February
Published by : SMITA
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