The short answer
| Loan | Usual minimum | Best rates from |
|---|---|---|
| Personal loan | 650 | 750 |
| Business loan, unsecured | 650 | 750 |
| Business loan, secured | 600 with some NBFCs | 750 |
| Car loan | 600 with some NBFCs | 750 |
| Loan against property | 600 with some NBFCs | 750 |
There's no official minimum. Each lender sets its own policy, so treat these as common benchmarks. Lenders also look at your whole report, not just the number, so a good score doesn't guarantee approval.
Why secured loans are more flexible
With a car or property as security, the lender has something to fall back on if repayments stop. That's why some NBFCs may lend to borrowers with lower scores for secured loans, generally at a higher rate. Personal loans and unsecured business loans have no such protection, so lenders tend to be stricter.
How your score may affect your rate
A better score usually means a lower rate. These are the indicative rates our calculators use to estimate EMIs and loan amounts. They aren't quotes, and actual rates depend on the lender and the date you apply.
| Score | Personal | Car (new) | Business, unsecured | Business, secured | LAP |
|---|---|---|---|---|---|
| 750 and above | 10.5% | 8.75% | 14% | 10.5% | 9.25% |
| 725 to 749 | 12% | 9.5% | 16% | 11.5% | 10% |
| 700 to 724 | 14% | 10.5% | 18% | 12.5% | 10.75% |
| 650 to 699 | 17.5% | 12.5% | 21% | 14% | 12.5% |
| 600 to 649 | – | 14.5% | – | 16% | 14.5% |
| No credit history | 15.5% | 11% | 20% | 13% | 11% |
A lower score reduces the loan you can get as well. On a ₹50,000 salary, the calculator's personal loan estimate is ₹11.63 lakh at 750 or above, but ₹9.95 lakh at 650 to 699, because the same EMI repays less at a higher rate.
What lenders look at beyond the score
- Payment history. Recent late payments matter more than old ones.
- Defaults, settlements and write-offs. Any of these in the last 2 years can lead to rejection, even if your score has recovered. "Settled" is not the same as "Closed".
- Recent applications. Lenders prefer 3 or fewer in 6 months, since many applications can look like financial stress.
- Card utilisation. Regularly using most of your limit can suggest you're stretched.
- Credit mix and age. A long record of varied, well-managed credit helps.
If you have no credit history
A CIBIL score of NH or -1 generally means there isn't enough credit history to score you. That's different from a low score. Some lenders consider first-time borrowers, particularly for secured loans or for those with stable, well-known employers. You can start building a history with a secured credit card against a fixed deposit, or by applying with a co-applicant who has a good record.
How to raise your score
- Pay every EMI and card bill on time. Set up auto-debit so you don't miss one.
- Keep card usage under about 30% of your limit. Paying down the balance before the statement date can help.
- Check your report for errors. Mistakes do happen, such as a closed loan shown as active or an account that isn't yours. You can dispute them with the bureau.
- Space out applications. Wait 3 to 6 months between them where you can. Checking your own score doesn't lower it.
- Sort out old settlements. Ask the lender what it would take to get the account updated, and keep your No Dues Certificate.
Scores usually start improving within 3 to 6 months of consistent behaviour, though serious issues can take longer. In India, you're entitled to one free full credit report a year from each credit bureau, so it's worth checking your report well before you apply.
Once you know your score, enter it in the eligibility calculator to see how much it could change your loan.