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For a personal
loan in India, the CIBIL score plays a crucial role in determining your
eligibility, as a good CIBIL score is required for personal loan. Here's a
breakdown of the score ranges and their implications:
1. 750 and above:
This is considered an excellent score, as above 750 CIBIL score is the
best CIBIL score required for personal loan. Lenders usually offer the best
interest rates, and you are more likely to get approved for a personal loan
with favourable terms.
2. 700 to 749:
This is also considered as a good score, as CIBIL score up to 750 is also
considered as a good CIBIL score required for personal loan, and you have a
high chance of loan approval. You may get competitive interest rates, though
not as low as someone with a score above 750.
3. 650 to 699:
This is average score of an individual. While you can still get a personal
loan, the interest rates may be higher, due to this score or according to the
lender’s terms and conditions, and you might have to provide additional
documentation or collateral.
4. 550 to 649:
This is considered as below average score. Getting a personal loan may be tough, and if approved, the loan terms may not be on your side. Lenders may charge
higher interest rates and impose strict conditions; lenders might also charge
you to give something for any mortgage.
5. Below 550:
This is considered a poor score, and it’s quite difficult to get a
personal loan with such a score. If you do manage to get approved, the interest
rates will likely be very high, and you might be required to provide additional
guarantees, such as a co-applicant or collateral.
Key Points:
- A CIBIL score of 750 or
above is typically required for easy approval and low interest rates.
- Lenders also consider other
factors, such as your income, employment stability, existing
debts, and repayment history, in addition to your CIBIL score.
If your CIBIL
score is below 750, you can work on improving it by paying off existing debts,
avoiding late payments, and maintaining a good credit utilization ratio to
increase your chances of getting approved for a personal loan.
10 Ways to improve CIBIL score quickly
