How much loan can you get based on your CIBIL Score

Your CIBIL score can be the key factor that determines how much loan you qualify for, the interest rate, and the repayment terms. A high CIBIL score opens the door to higher loan amounts, lower interest rates, and quicker approvals. Let’s understand how your CIBIL score affects your loan eligibility, the ideal score for various loans, and what you can expect in terms of loan amounts based on your score.

As you know, a CIBIL score is a three-digit credit score that ranges from 300 to 900 and represents your creditworthiness based on your financial history. It is calculated by the Credit Information Bureau (India) Limited (CIBIL) and widely used by banks and financial institutions when reviewing loan applications.

  • Higher Score = Better Loan Offers: A score of 750 or more is considered excellent and indicates a responsible credit history.

  • Lower Score = Limited Loan Options: A score below 600 may lead to rejections, higher interest rates, or smaller loan amounts.

CIBIL Score and Loan Eligibility Table

Here’s a quick look at the types of loans, ideal CIBIL scores for them, and the approximate loan amounts you can expect:

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Loan Type Ideal CIBIL Score Loan Amount Range Interest Rate (Approx.)
Home Loan 750+ ₹20 Lakh - ₹5 Crore As low as might be 8.30%
Personal Loan 700+ ₹50,000 - ₹15 Lakh 10.50%-12%
Car Loan 650+ ₹1 Lakh - ₹6 lakh Mostly above 10%
Credit Card 750+ ₹50,000 - ₹10 Lakh (credit limit) 2% - 3.5% per month (on outstanding)
Education Loan 700+ ₹50,000 - ₹20 Lakh 8%-10%
Gold Loan 600+ Based on Gold Value (Up to ₹50 Lakh) 8% - 13%

Note: The exact interest rate and loan amount can vary depending on the lender’s terms, your income, and other financial factors.

How Much Loan Can You Get Based on Your CIBIL Score?

CIBIL Score: 750 and Above - Ideal for All Loans

If your CIBIL score is 750 or higher, congratulations! You are eligible for almost any type of loan with favorable terms.

  • Home Loan: Loan amount up to ₹5 Crore with an interest rate as low as 8.5%.

  • Personal Loan: Loan amount up to ₹40 Lakh, ideal for emergencies, travel, or weddings.

  • Car Loan: Eligible for new or second-hand cars with competitive rates and higher amounts.

  • Credit Cards: High credit limits with low-interest options.

Important: A score above 750 not only increases the loan amount but also ensures faster approvals and better negotiation power with lenders.

CIBIL Score: 700-749 - Good for Moderate Loans

A score between 700-749 is still considered good but may slightly limit the loan amount.

  • Home Loan: Loan amount up to ₹1 Crore at slightly higher interest rates (around 9.5%).

  • Personal Loan: Loan amount up to ₹15 Lakh, suitable for moderate expenses.

  • Car Loan: Still eligible for both new and used cars but might face slightly higher interest rates.

Tip: If your score falls in this range, work on boosting it by paying off any outstanding debts or ensuring timely bill payments.

CIBIL Score: 650-699 - Fair, Limited Options

With a score in the 650-699 range, you are eligible for basic loan types but may face higher interest rates and smaller loan amounts.

  • Home Loan: Limited to about ₹20 lakh with rates around 11%.

  • Personal Loan: Loan amount up to ₹1 Lakh but with stricter repayment terms.

  • Car Loan: Possible, but you will be required to make a higher down payment.

CIBIL Score: 600-649 - Low, Limited and Expensive Loans

A 600-649 score indicates a higher risk for lenders. You can still get some types of loans, but they may come with strict conditions.

  • Gold Loan or Secured Loan: Using assets like gold or property as collateral.

  • Personal Loan: Limited options and amounts typically capped at ₹50,000 with high interest.

  • Home Loan: Almost not eligible, if eligible than very strict terms and conditions

Warning: You may need a co-signer or collateral for approval, and the interest rates will be noticeably higher.

CIBIL Score: Below 600 - Very Limited

With a score below 600, it may be challenging to get unsecured loans, and you may need to look into secured loan options.

  • Secured Loans Only: Options like gold loans or loan against property might still be possible.

  • Personal Loan: Very low, like Rs. 20,000

  • Home Loan: Most lenders will not approve a home loan, or you may need a co-signer.

Conclusion

Your CIBIL score is important for getting a loan, deciding how much you can borrow, and what interest rates you'll pay. A high score (750 and above) makes it easier to get loans and can save you money on interest over time. By knowing your score, you can choose the best loans for you and understand their costs.

Frequently Asked Questions (FAQs)

  1. What is the minimum CIBIL score for a personal loan?

    • The minimum score generally required is around 700. However, some banks may consider lower scores if you meet other eligibility requirements.

  2. How can I improve my CIBIL score?

    • Pay bills on time, reduce outstanding debt, avoid multiple loan applications, and regularly check your credit report for errors.

  3. Can I get a home loan with a score of 650?

    • Yes, but you might face higher interest rates and limited loan amounts. It may help to bring in a co-applicant or provide additional collateral.

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