What is the Minimum CIBIL Score Required to get a Loan?

Highlights

  • Know the minimum CIBIL score for home loan.
  • Check the minimum CIBIL score for personal loan.

An individual who has a credit history may get a hassle-free loan. CIBIL score is the numeric representation of the payment history based on which financial institutions decide whether your loan application deserves approval or not. CIBIL is the top rated credit score providing agency where the score ranges between 300-900. The credit score generated by CIBIL is popular with the term CIBIL score. The score on the upper range gives access to better credit deals. Now, talking about what is the minimum CIBIL score required to get a loan, it depends on the type of loan. In this article, you will learn about the credit score needed for a personal loan and home loan, two being the most general ones.

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Minimum CIBIL Score for Personal Loan

To get a personal loan, you must have a stable source of income and a good credit score. The minimum CIBIL score for loan approval is 750 or above. With this score, you are eligible to fetch a higher loan amount, faster approval and scope of negotiating in the interest rate on the loan. A good CIBIL score is thus necessary for loan approval at some banks/NBFCs as well.

Minimum CIBIL Score for Home Loan

Home loans are secured loans and hence the approval or eligibility for the loan depends on both repayment capacity and credit history. The housing finance companies such as Indiabulls and DHFL demand a CIBIL score of at least 650. But, most of the lenders such as SBI, LIC HFL, HDFC Ltd. and PNB HFL approve home loan applications with CIBIL score of 720 or above if credit history is healthy. Otherwise, applicants having a score below 650-750 might not get higher loan amount, a lower rate of interest or even approval. So, it’s better to maintain a score of at least 650-750 to get a home loan at low rate of interest.

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Can You Get a loan with Zero CIBIL score?

Having zero credit score or no credit history is still a better situation than a poor CIBIL score. When you have a bad CIBIL score, lenders straightforwardly reject your application since your score shows your ill-treatment with past payments. Coming back to the scenario when you have zero CIBIL score, there are many financial institutions that offer credit facilities to such score holders. For instance, HDFC Bank does give credit cards and personal loan to no CIBIL score holders on the basis of their present income and other relevant factors. Thus, lenders look for other factors to fulfill your repayment burden despite your middling score and consider your application for the approval.

How is CIBIL score calculation done?

You might be interested in knowing how the calculation of CIBIL score is done, so have a look at the factors based on which the score is generated:

  • The repayment history (35%)
  • The amount you owe to lenders (30%)
  • Number of years of servicing debt (15%)
  • Number and amount of recent loans taken or applied for (10%)
  • The Credit Mix (10%)

If you manage to maintain a CIBIL score of 750 or above, the approval process will be much faster; the loan amount might be larger; you might be able to negotiate a lower interest rate and the whole loan approval process is much simpler. Those who have a credit score below 750 should work towards its improvement by following the above-mentioned measures.

Personal Loan Interest Rates September 2018
Bajaj Finserv10.99% - 16.00%
Fullerton India14.00% - 33.00%
HDFC Bank11.25% - 21.25%
ICICI Bank10.99% - 18.40%
IndusInd Bank11.25% - 16.00%
Kotak Bank10.99% - 20.99%
RBL13.00% - 18.00%
Standard Chartered Bank10.99% - 14.49%
Tata Capital10.99% - 18.00%
Home Loan Interest Rates September 2018
State Bank of India/SBI8.65% - 9.20%
HDFC8.70% - 9.40%
Bank of Baroda8.55% - 9.55%
LIC Housing8.60% - 8.95%
PNB Housing Finance8.99% - 10.75%
ICICI Bank8.85% - 9.10%
Axis Bank8.50% - 8.75%
Citibank8.85% - 9.65%
Indiabulls Housing Finance Limited8.70% - 9.85%
Kotak Bank8.65% - 8.75%
DHFL9.05% - 9.95%
Reliance Home Finance8.75% - 10.00%
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