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Minimum CIBIL Score to Obtain a Loan in India


Secured or unsecured, any form of loan can help you in the time of a financial crisis. However, before applying for a loan in India, it is important to get a better understanding of how loans work in order to avoid any unforeseen problems. To ensure loan approval on your loan application, you need to have a deep understanding of the eligibility criteria of that particular loan. Generally, the eligibility criteria for most of the banks remain the same throughout the country. An applicant, in order to secure a loan must be above the age of 21 years at the time of applying for credit. However, applying for multiple credits at the same time or having various loan rejections can lower your credit score as they make you look credit hungry in front of the banks. 

Banks, whenever they receive your loan application, run a background check on you. They enquire about your CIBIL score from the respective credit bureaus. Although the minimum CIBIL score required differs per bank, a CIBIL score of 750 or above is preferred when applying for a loan in India. Apart from your credit history and score, banks tend to examine other aspects as well such as your age, CIBIL score, income, and job status. If you wish to get approval on your loan application at a low interest rate, you must keep these loan eligibility conditions in mind. 

Eligibility Criteria for a Loan

There is a certain set of eligibility criteria that you need to fulfil in order to get approval on your loan application. Below are some of the important eligibility aspects that banks enquire when you apply for any kind of loan:

Age of the Applicant

Generally, banks consider this aspect in case of a home loan. Along with the age of the applicant in the event of a home loan, banks also consider the number of working years left with that applicant to evaluate his repaying capacity. Since home loans are generally offered for a loan tenure of 30 years, banks prefer young applicants to give approval for a home loan in India. Young applicants are seen to be able to secure a longer loan term than older applicants. 

Income Status

Banks favour candidates who have a consistent source of income. Such applicants are regarded as creditworthy by banks, and they are less likely to default on their loans. Borrowers having a consistent source of solid income are regarded to be capable of repaying the loan on time. In addition to being a creditworthy candidate, your income level has a big influence on the EMI you pay on your home loan.

Employment Status

In addition to your income levels, banks consider your employment status. If you are a salaried employee, you must have worked for at least two years, with at least one of those years spent with your current company. Your employer should also be a recognised public or private sector organisation. If you are self-employed, however, you must have been in business for at least 2 to 5 years. However, because this criterion differs from bank to bank, it is always a good idea to check with your lender before applying for a home loan.


If you have an excellent repayment history and have a high CIBIL Score then there are chances of getting a loan approval at a lower rate of interest. A high CIBIL score also indicates a lower chance of default. As a result, banks will consider you creditworthy enough for the loan and are more likely to approve your application. Furthermore, if you have a low CIBIL Score, then you can follow the measure on how to improve CIBIL score and increase your credit score. Banks normally demand a CIBIL score of 750 or above to approve a loan application in India.

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