What is the CIBIL Score Required for Loans and Credit Cards?

You don’t get things if you don’t deserve them. Be it the personal or professional life, efforts and performance go a long way in making you eligible for the plaudits and rewards. Similarly, when it comes to accessing the credits, a good CIBIL score would be required besides having the income to pay off the monthly dues with ease and on time. Even as the income stands good, a poor score could mar the possibilities of smooth credit approvals. Also, the requirement of CIBIL score can vary across different credits. So, you can read this article and know all that and more.

What is CIBIL Score?

A CIBIL score is a numerical representation of one’s debt servicing capabilities. Actually, the score ranges from 300 to 900 in India. CIBIL, a renowned credit bureau operating around the world, assigns credit scores to individuals based on their repayment behaviour.

What is the CIBIL Score Required to Obtain a Personal Loan?

A personal loan can be applied at banks and non-banking finance companies (NBFCs) for a variety of purposes such as education, marriage, instant cash needs, travel, etc. It’s an unsecured loan granted to individuals for a maximum of 5 years at interest rates ranging from 11%-25% per annum on an average. As it’s an unsecured loan, the CIBIL score needed would be 750 and above for a smooth approval.

A Detail on CIBIL Score Requirement for Home Loan

There could be many looking to buy their dream home on the back of a loan. A home loan at attractive interest rates of 8.65%-10% per annum has somewhat made the dream possession within the reach of many. The fact that the loan can be availed for as long as 30 years eases the EMI payment to a great degree. Since the loan gets secured by the equitable mortgage of the property to be bought, a CIBIL score of 650 and above can get it disbursed to you without much fuss.

What Should be the CIBIL Score to Access Car Loans Easily?

Driving the dream 4-wheeler on the road is getting out of the realms of dreams to increasingly becoming a reality. It’s because of the attractive finance schemes having a long repayment period of up to 7 years and 5 years for new and used cars, respectively. The loan can be availed at interest rates of 9%-13% for new cars and 14%-23% for used cars. Even though the car is hypothecated, the value of the car depreciates sharply over time. Taking this into account, banks would like to see a CIBIL score of 700 and above to approve the application.

What is the CIBIL Score Needed for Easy Approval of Credit Cards?

A credit card is a plastic instrument used to shop for a variety of products online and offline. You can buy mobile phones, luxury items or even book tickets for movies, trains, buses, etc. At the same time, you can avoid interest on the credit card by paying its dues on time and in full. In the absence of the same, the interest gets charged at the rate of 2.5%-3.5% per month. Like personal loans, it’s also unsecured and so would require you to have a CIBIL score of 750 and above for a smooth approval from the lender.