How is a Personal Loan Granted Based on the CIBIL Score?


  • Want to get a personal loan at a lower interest rate? A CIBIL Score of 750 and above can do it for you!
  • Read here in detail the role of a CIBIL Score in getting you favourable personal loan terms

Whenever you face any financial emergency, the easiest way to get out of it is by borrowing a personal loan. A personal loan does not need any collateral and gets disbursed easily, making it the preferred option for borrowers seeking instant financial help. But getting a personal loan also depends on the credit history of an individual. This is where your CIBIL score comes into play. So, you should know the importance of a personal loan based on CIBIL score.

TransUnion CIBIL provides credit scores based on your loan or credit card repayment track. This 3-digit credit score from CIBIL ranges from 300 to 900 in India. The closer you are to 900 the easier it is to access a personal loan. Read here in detail the role of CIBIL Score in getting your personal loan approved.

Importance of CIBIL Score on Your Personal Loan

Before lending you a personal loan, banks and financial institutions look at certain parameters by which they can gauge the applicant’s creditworthiness. And your CIBIL Score is one of them that helps lenders assess your creditworthiness about the loan amount.

The higher the credit score is, the better are your chances to get a personal loan. A score of 750 and above is considered ideal for personal loan approval. So do check your CIBIL score as it plays an integral role in your financial journey.

Effects of CIBIL Score on your Personal Loan Interest Rate & Loan Amount

Before availing of a personal loan, you should always check the interest rate. And when you have a high CIBIL score, you can avail of a personal loan at a competitive rate of interest. The reason is simple – A good CIBIL score gives you the power to negotiate with your lender. Sometimes the lender even waives off the processing and pre-payment charges on a personal loan based on CIBIL score. On the other hand, when a person has a low score, the lender will raise the interest rate. Also, the amount of loan you borrow rests on your score. A high score will give you a higher loan amount and vice versa.

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CIBIL Score & its Relationship with Pre-approved Personal Loans

Lenders also offer pre-approved personal loans to individuals having a good score. It does not need any application from your end; the lender will check your credit history and offer you a loan based on it. So, if you are paying a credit card or loan EMI on time and have a good CIBIL Score, lenders could offer you a pre-approved loan. You can check such offers on your mobile or internet banking. All that requires is your consent to the offer and the loan amount will get disbursed in your account.

Advantages of Pre-approved Loans

Pre-approved personal loans based on CIBIL score can come at a lower interest rate. There is a reduction in the processing time of your loan application. You can also negotiate the terms of the loan, such as EMI, tenure as per your convenience.

How to Check Your Credit Score?

Your credit score gives the first impression to the lender about your creditworthiness. Using CIBIL, lenders can find out whether you can repay the loan on time or not. You can check the CIBIL Score at Wishfin, an official partner of TransUnion CIBIL for credit scores, by following the steps shown below.

  • Visit the official website of Wishfin
  • Click on the ‘CIBIL Score’ button
  • Enter your full name as it is on the PAN card
  • Enter Your Date of Birth
  • Select your gender
  • Enter your PAN card number
  • Enter your contact details such as email ID (where you will receive the credit report), mobile number, and home address.
  • Submit all these details to get the score
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Personal Loan Interest Rates September 2023
Fullerton India12.00% - 24.00%
HDFC Bank10.75% - 14.50%
ICICI Bank10.75% - 19.00%
IndusInd Bank10.25% - 26.00%
Kotak Bank10.99%
RBL14.00% - 23.00%
Standard Chartered Bank11.49%
Tata Capital10.50% - 24.00%
Home Loan Interest Rates September 2023
Axis Bank8.75% - 9.15%
Bank of Baroda8.50% - 10.60%
Citibank8.75% - 9.15%
HDFC8.50% - 9.40%
ICICI Bank9.00% - 9.85%
Indiabulls Housing Finance Limited8.65%
Kotak Bank8.85% - 9.40%
LIC Housing8.50% - 10.50%
Piramal Capital & Housing Finance10.50%
PNB Housing Finance8.50% - 10.95%
Reliance Home Finance8.75% - 14.00%
State Bank of India/SBI9.10% - 9.65%
Tata Capital8.95% - 12.00%