What is the Minimum CIBIL Score for A Personal Loan?
The CIBIL score ranges from 300-900. But what is the credit score that is required to get a personal loan sanctioned?
Many lenders have different criteria for sanctioning personal loans. However, the credit score is one of the key factors that lenders look at before sanctioning an unsecured loan.
Now, this is ofte a source of confusion for customers. Is my score good enough? Will I get a personal loan? Will my rate be higher? What is the exact cut-off?
Broadly, this is how the minimum CIBIL score grid works for personal loans.....
If Your Credit Score Is:
This Is How You Fare:
800 or above
Excellent score. You will be a preferred customer for the lenders
720 to 800
Good score. Lenders will look at your application favorably
680 to 720
Fair score. Unnsecured loans are likely to be priced higher for the risk involved
Less Than 680
Poor. No unsecured credit facility is likely to be provided by any prime lender
The CIBIL is a Reserve Bank of India-approved agency whose crucial function is to calculate the creditworthiness of borrowers. CIBIL is one of India's most central credit bureaus, supporting financial institutions in risk assessments of candidates. It is an important factor that lenders consider when giving you a personal loan. It is always recommended to maintain at least a minimum CIBIL score for Personal Loan.
Ideal and Minimum CIBIL Score for Instant Personal Loan
The minimum CIBIL score preferred by the majority of lenders to provide instant personal loans is 750 to 900 (Very good), but the ideal CIBIL score is 800-900(Excellent).
- 800 to 900 are the excellent category CIBIL scores for an instant personal loan. This credit score shows regular payments of EMIs and excellent management of finance. You need to enhance your score to this level, and make sure that you pay your loan EMIs & bills on time.
- CIBIL score is made up of various factors. Major factors are: - credit payment history, outstanding debt, new credit, credit mix, debt-income ratio, no of products applied, length of credit history, etc.
Before applying for an instant personal loan minimum CIBIL score is a necessity.
Importance of maintaining a minimum CIBIL score for Personal Loan
- Defines the complete history and activities of your credit.
- You can enjoy speedy loan approval and other benefits connected with it.
- You will get low or competitive interest rates from various lenders.
- Easily obtain a larger loan amount for an instant personal loan.
- You can easily get loans from Banks, NBFCs, and Fintech companies.
Approach to Getting Bad Credit Personal Loans Immediately
If you are not qualified minimum CIBIL score, do not worry. Continuously improve your credit score. Follow this approach to get an instant personal loan with bad credit.
Also Read- How to Get A Personal Loan with Bad Credit
- Peer-to-Peer Loans for bad credit personal loans- Peer-to-peer lending is the fastest growing marketplace for lending. P2P lenders may not deeply analyze your credit score. You can also get a larger loan amount from this, it provides an affordable option for borrowers but it also has cons as well.
- Short-Term Bad Credit Instant Personal Loans- This loan option offers a speedy and reachable financing option because you can get approval very fast even if you have a poor credit score. Once you get the loan you can pay as per your choice. But you may get this loan with higher interest rates.
- Line of Credit by online lenders- Compared to banks and other financial institutions, online lenders generally have easygoing qualification requirements and quicker funding for lines of credit. The interest rates for lines of credit are normally higher than the banks. When you acquire a line of credit, you can access cash on demand.
- Co-signed instant personal loans- In a joint personal loan, the co-borrower is equally responsible to make repayment within time. With the help of a co-signer, the borrower will get bad credit personal loans with a good CIBIL score of another person.