Do you want a personal loan to cover an emergency or a big purchase?
If so, you have probably heard that your CIBIL score is the key to getting approved. But what exactly is a “good” CIBIL score? And what happens if your score isn’t perfect?
A CIBIL score of 750 or higher is considered excellent for a personal loan in India.
If your score is above 750, lenders view you as a low-risk borrower. This often leads to faster approvals and lower interest rates. Scores between 700 and 750 are also good and usually get you approved, though the interest rate might be slightly higher.
But if your score is lower, don’t worry. It is still possible to get the funds you need. Let’s break down everything you need to know about CIBIL scores and how you can get an Instant loan even with low CIBIL score.
What is a CIBIL Score?
A CIBIL score is a three‑digit number between 300 and 900 that shows how safe you look to banks and NBFCs as a borrower. For personal loans, lenders check this score first because the loan is unsecured and there is no collateral to fall back on.
- CIBIL stands for Credit Information Bureau (India) Limited.
- The usual score range is 300 (lowest) to 900 (highest).
- Higher score = lower chance of default in the lender’s view.
For a personal loan, lenders use your score to decide:
- Whether to approve or reject your application.
- What interest rate to offer.
How much loan amount and what tenure to allow.
What is the Minimum CIBIL Score Required for a Personal Loan?
Most traditional banks in India prefer a minimum CIBIL score of 700 to 750.
If your score falls below 700, many banks may reject your application or ask for a high interest rate.
However, modern fintech apps are changing these rules. They often look at other data points beyond just your score.
Here is a quick breakdown of how lenders typically view your score:
| CIBIL Score Range | Rating | Loan Approval Chances |
| 750 – 900 | Excellent | Very High (Best Interest Rates) |
| 700 – 749 | Good | High (Standard Interest Rates) |
| 650 – 699 | Average | Moderate (Higher Interest Rates) |
| Below 650 | Poor | Low |
If you have a low credit score, you can still get personal loan with InstaMoney. You just need to download the app, check your eligibility, provide the required documents, and you will get loan amount credited into your account directly. You can spend this amount for any types of personal expenses.
Why Does Your Credit Score Matter for Personal Loans?
Why do lenders care so much about this three-digit number?
It comes down to trust. Your CIBIL score tells the lender how likely you are to repay the money on time.
- Approval Speed: A high score often leads to instant approval.
- Interest Rates: The higher your score, the lower your interest rate.
- Loan Amount: A good score can help you qualify for a larger amount, up to ₹1,00,000 with apps like InstaMoney.
If your score is low, lenders worry you might default. That is why they either say no or charge you more to cover their risk.
How is Your CIBIL Score Calculated?
Do you know what actually makes your score go up or down? It isn’t random.
Four main factors decide your score:
- Repayment History (35%): Do you pay your EMIs and credit card bills on time? This is the most important factor.
- Credit Utilization (30%): How much of your credit limit do you use? If your card limit is ₹1 lakh and you spend ₹90,000, your score will drop. Try to keep it under 30%.
- Credit Duration (15%): How long have you had credit? Older accounts are better.
- New Inquiries (10%): Did you apply for ten loans in one week? That looks desperate and hurts your score.
How Can You Improve Your Credit Score Quickly?
If your score is low right now, you can fix it. It takes time, but these steps help:
- Pay Your Bills on Time: Never miss a due date. This is the fastest way to build a good history.
- Don’t Close Old Cards: Keep your oldest credit card active, even if you don’t use it much. It adds to your credit history length.
- Limit New Applications: Don’t apply for five different loans at once.
- Check for Errors: Sometimes your report has mistakes. Check it and report any errors to CIBIL.
How Should You Check and Monitor your CIBIL Score Safely in India?
You might be worried that checking your score too often will lower it.
This is a common myth.
When you check your own score, it is called a “soft inquiry.” Soft inquiries do not hurt your credit score. You can check it as many times as you want.
However, when a bank checks your score because you applied for a loan, that is a “hard inquiry.” Too many hard inquiries in a short time can lower your score. Here is the safest way to monitor your score without any risk:
Use the Official CIBIL Website Once a Year: Every Indian citizen is entitled to one free full credit report every calendar year from the official CIBIL website (www.cibil.com). This is the most accurate report you can get.
- Go to the official CIBIL website.
- Create an account using your PAN card and email.
- Verify your identity and download your report.
Use Trusted Third-Party Apps for Monthly Updates: Since the official report is free only once a year, you can use reputable financial apps like OneScore or Paisabazaar for more frequent updates. These apps often provide free monthly updates.
- Tip: Always check the app’s privacy policy to ensure they don’t sell your data to random telemarketers.
Watch Out for Phishing Scams: Fraudsters often create fake websites that look like CIBIL to steal your data.
- Check the URL: Ensure the website starts with “https://” and has a lock icon.
- Never Share OTPs: No legitimate credit bureau or bank will ask for your OTP over a phone call.
- Avoid Public Wi-Fi: Do not check your sensitive financial data while connected to free public Wi-Fi at a cafe or station.
Review Your Report for Errors: Sometimes, lenders make mistakes. They might report a paid loan as “active” or a payment as “late” when it wasn’t. If you see an error, raise a dispute immediately on the CIBIL website. It can take up to 30 days to resolve, but it is worth it to fix your score.
Pro Tip: If you are planning to apply for a big loan (like a home loan) soon, stop applying for other small credit cards or loans at least 6 months in advance. This keeps your hard inquiries low and your score healthy.
Conclusion
Your CIBIL score is important, but it isn’t the only thing that matters. While a score of 750 or higher gets you the best rates, you can still secure funds with a lower score.
Financial emergencies don’t wait for your credit score to improve. That is why we focus on your current ability to repay rather than just your past history. Whether it’s an emergency, a special purchase, or just some extra cash in hand, InstaMoney helps you fulfill your needs without the wait.
The process is 100% digital. You only need to upload 4 documents , and our automation allows your loan to get approved within a few minutes.
Why wait for banks to approve you? Check your eligibility in 2 minutes and get an instant personal loan up to ₹1,00,000 directly to your bank account today.
