Personal Loan Credit Score Requirements: What Score Do Lenders Actually Want?

CIBIL scores in India range from 300 to 900, and while there's no single universal cutoff every lender applies, certain bands are widely understood across the industry.

The commonly referenced bands

• 750 and above is generally considered a strong score, often associated with easier approval and comparatively better interest rates
• 650-749 is typically viewed as a moderate score - approval is still possible, but terms offered may be less favourable, or additional scrutiny may apply
• Below 650 can make approval harder with many lenders, though this varies, and some lenders specifically cater to this segment with different pricing

Why there's no single fixed cutoff

Each lender sets its own internal risk policy, and a score that one lender treats as a hard cutoff might still be acceptable to another, especially when combined with other strong factors like stable income, low existing debt, or a long-standing banking relationship.

What else lenders weigh alongside the score itself

• Your repayment history - not just the score, but whether past loans and credit cards were paid on time
• Your credit utilization - how much of your available credit limit you typically use
• The length and diversity of your credit history
• Recent credit inquiries - too many loan or card applications in a short span can affect how lenders view a new application

If your score isn't where you'd like it

A lower score doesn't automatically mean rejection everywhere - some lenders specifically assess applicants with limited or lower scores using additional factors. Comparing offers across multiple lenders, rather than assuming one rejection reflects your options broadly, remains the more reliable approach.