Having easy access to finance via various loans helps you meet urgent needs and fulfil your goals. All loans come with their eligibility criteria, a personal loan to pay for healthcare or a wedding, a home loan to become a homeowner or a business loan to boost your firm’s growth.
To both qualify for a loan and get it on competitive terms, your credit score is a number you can’t ignore. A credit score above 750 reflects good financial health and increases your chances of getting an affordable sanction on flexible terms.
Why does your credit score matter when you’re looking to take a loan
Your credit score showcases your creditworthiness and allows your lender to judge your application as a potential borrower. It is a summation of your credit history and how responsibly you have dealt with credit in the past. Your credit score reflects your credibility since it considers things like timely repayment of EMIs, your credit utilisation, your credit inquiries, and your existing debt. A good credit score shows your lender that you are financially stable and responsible with credit.
However, do keep in mind that your credit score is not the only criteria in the process of qualifying for a loan and getting approval on your application. Other factors such as your salary, city of residence, existing debt, employer, etc., also play a part.
While a good credit score is essential irrespective of the kind of financing you are looking to avail, here are the ideal scores that can help you get a better deal on your loan.
Ideal credit score to avail a personal loan
Your credit score is a significant factor determining your eligibility for a personal loan since it is a collateral-free loan. The minimum CIBIL score for a personal loan is between 720 and 750. Having this score means you are creditworthy, and lenders will approve your personal loan application quickly. They may also offer you your chosen loan amount at a nominal interest.
While you may still be able to get a personal loan with a credit score between 600 and 700, the lower your score, the lower your approved loan amount will be. A credit score below 600 is considered inadequate for personal loans in most cases.
Ideal credit score to avail a business loan
If you are applying for a collateral-free business loan, having a credit score of 700 or more is ideal. If you are applying for a secured business loan, your loan application may be approved with a lower credit score, say between 600 and 700 too. Both these scenarios are true when you are applying for a business loan as an individual, be it a self-employed professional such as a CA or engineer or doctor or self-employed non-professional such as a trader or manufacturer.
Additional Read:How to ensure your Business CIBIL score stays above 700
However, if you are applying for a business loan as an entity, be it a Partnership, Limited Liability Partnership, Private Limited, or a closely held limited company, your business credit score matters apart from your personal credit score. In such cases your CIBIL rank or Equifax business credit score is checked by the lender.
Ideal credit score for home loans
A home loan is a secured loan as the home you are purchasing acts as the collateral. Hence, it is possible to get a home loan even if your credit score is lower than 750. Some lenders sanction home loans if your credit score is around 550 or more.
It is important to remember that the lower your credit score is, lower the loan amount might be sanctioned on approval. That is why applying for a big loan amount when your credit score is low is not advisable. In some cases, lenders provide only 65% or less of the required loan amount if your credit score is low. It would be better to improve your credit score before applying for a home loan.
Additional Read: Where to check credit score
Even though you may get a loan even if your credit score is low, it is important to realise your credit score will always be considered for loan approval. This is why it is better to have a good credit score instead of risking rejection from a potential lender, which may lower your credit score further.
Bajaj Finserv offers pre-approved offers on a variety of loans. Just share your details and check out your pre-approved offer to avail the financing you need.
FAQs
A CIBIL Score of 750 and higher is ideal while applying for a personal loan with Bajaj Finance Limited. Your credit score is very crucial as it reflects how risky or non-risky you are as a borrower.
What is good credit score for Bajaj Finance? ›
While the minimum CIBIL Score required for the Bajaj Finserv Insta EMI Card is 720, you should aim to fortify your creditworthiness by aiming for a score of 750 or more. The general consensus among lenders is that a score within the range of 750–900 is excellent.
What credit score is good for loan? ›
A CIBIL score of 750 or above in your credit report is ideal. It will aid in qualifying you for personal loans and credit cards. However, if your CIBIL score is below 685, you will find it harder to borrow funds from banks and NBFCs.
What should your credit score be to be approved for a loan? ›
To qualify for a personal loan, borrowers generally need a minimum credit score of 610 to 640. However, your chances of getting a loan with a low interest rate are much higher if you have a “good” or “excellent” credit score of 670 and above.
How much credit score is required for EMI? ›
You need a minimum credit score of 700+.
How much can I borrow with a 700 credit score? ›
You can borrow from $1,000 to $100,000 or more with a 700 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
What is the credit limit of Bajaj Finserv? ›
Both Bajaj Finserv DBS Bank Credit Card and Bajaj Finserv RBL Bank SuperCard offer a limit of up to Rs. 2 lakh.
How to get a 900 credit score? ›
A credit score of 900 is not possible, but older scoring models that are no longer used once went up to 900 or higher. The highest possible credit score you can get now is 850.
What is a perfect credit score? ›
A perfect credit score of 850 is hard to get, but an excellent credit score is more achievable. If you want to get the best credit cards, mortgages and competitive loan rates — which can save you money over time — excellent credit can help you qualify. “Excellent” is the highest tier of credit scores you can have.
Is 777 a good CIBIL score in India? ›
A CIBIL Score of 777 falls within the excellent credit score range, which typically ranges from 750 to 900. This impressive score suggests that you have managed your credit responsibly, making timely payments, and maintaining a healthy credit history.
Requirements to receive a personal loan
This allows them to look at your history from the past seven years and see whether you've typically made payments on time. For a $30,000 loan, you'll typically need a credit score above 600 just to qualify or above 700 to get a competitive rate.
What credit score is needed for a $20,000 loan? ›
Generally, you'll need a good to excellent credit score — 670 or higher — to qualify for a $20,000 loan. The higher your credit score, the better your chances of qualifying for a loan and securing a lower interest rate.
What credit score do I need for a $10,000 loan? ›
What credit score do I need for a $10,000 loan? Generally, you need a good to excellent credit score of 670 or above to qualify for a $10,000 loan. However, some lenders specialize in working with borrowers with fair or poor credit.
What is the minimum CIBIL Score for Bajaj Finserv? ›
It is measured on a scale between 300 and 900, with 900 indicating maximum creditworthiness. The minimum CIBIL Score required for Bajaj Finserv Insta EMI Card is 720 or above. A score of 750 or above is considered excellent and can fetch favourable terms while availing of the Bajaj Finserv Insta EMI Card.
How to check Bajaj EMI eligibility? ›
If you are interested in applying for the Bajaj Finserv Insta EMI Card, you'll need to meet some basic eligibility criteria. To apply for the card, you must be an Indian citizen between 21 years and 65 years of age with a regular source of income and a credit score of 720 or higher.
Is Bajaj Finserv EMI card good? ›
Is taking the Bajaj Finserv EMI card a good option? Absolutely. Opting for the Bajaj Finserv Insta EMI Card is a prudent decision. Its swift approval process, widespread acceptance, and No Cost EMI option ensure a seamless and cost-effective shopping experience.
What is the credit rating of Bajaj Finance? ›
Company Rating. The company has been assigned Long Term Issuer Credit Rating of 'BBB-/Stable' and Short Term Issuer Credit Rating of 'A-3' by S&P Global Ratings.
What is the minimum credit score to get a Bajaj EMI card? ›
It is measured on a scale between 300 and 900, with 900 indicating maximum creditworthiness. The minimum CIBIL Score required for Bajaj Finserv Insta EMI Card is 720 or above. A score of 750 or above is considered excellent and can fetch favourable terms while availing of the Bajaj Finserv Insta EMI Card.
Is 750 credit score good for car loan? ›
Good Credit (700-749)
If you have good credit, which is typically above 700 but below 750, you're a prime borrower. In this case, you're likely to receive a below-average interest rate for your auto loan.
Is 650 credit score good for car loan? ›
Is 650 a good credit score to buy a car? It's possible to get approved for a car loan with a 650 credit score. If you are approved for a car loan, having a lower credit score may mean you're offered less favorable loan terms, like a higher interest rate.
