Minimum Cibil Score for Personal Loan – Banks sanction personal loan to applicants based on certain eligibility criteria. This includes age of the applicant, his/her net monthly income and most importantly, CIBIL score. Cibil score is a three-digit number ranging from 300 to 900 that depicts the credit history of the borrower. Banks and other financial institutions offer personal loan to borrowers based on the repayment capacity / creditworthiness of the borrower ascertained by CIBIL score. Rejection or approval of the personal loan applications depends majorly on CIBIL Score.
Personal Loan is an unsecured loan that is offered without collateral or third-party guarantee. To prevent any default payments, Banks check Cibil score to know about the repayment capacity of the borrower before sanctioning personal loan.
Minimum Cibil Score Required
To avail Personal Loan, the borrower should have a Minimum Cibil Score of 750 .With Cibil score 750 and above, one can enjoy hassle-free documentation, speedy approval, and easy interest rates. Individuals having Cibil score below this number are less likely to avail personal loan.
Zero Cibil Score
In case, the personal loan applicant has no credit history and therefore his Cibil score is zero, he is offered loan amount based on other crucial factors. These factors include income of the applicant, his company status and relationship with the Bank.
Factors that Affect Cibil Score
Calculation of Cibil Score
Your Credit Score is calculated based on certain factors. These include: