Last updated 12 Nov 2026
There is no single minimum credit score that applies to every loan in India. Each lender sets its own policy, and the score matters more for loans with no collateral (a personal loan) than for loans backed by an asset (gold, a home or a vehicle). A higher score usually improves your chances and the offer you see; a lower score does not always mean a refusal.
This guide explains how lenders read a credit score (CIBIL or another bureau), why a fixed cut-off would be misleading, what else is weighed alongside the score, and what can make up for a weak one. It does not quote any lender's cut-off, because those are internal and change. For the basics of the score itself, read credit score and credit report explained.
The short answer
- Unsecured loans (personal loan, unsecured business loan) lean heavily on the score and the credit report behind it.
- Secured loans (home, loan against property, vehicle, gold) lean more on the asset, but most lenders still look at the score and at your repayment history.
- A score is a summary. Lenders also read the report itself: missed payments, settled accounts, recent enquiries and how much of your limit you use.
- Income, existing EMIs, age, job or business stability and the loan amount you ask for can outweigh a modest score, or sink a good one.
Why no single cut-off exists
Many borrowers ask for "the minimum score". The honest answer is that it depends on four things the lender decides, not you.
- Risk appetite: one lender may serve borrowers with thin credit histories at a higher price, while another keeps its policy tight.
- Product: a small unsecured loan and a large home loan are underwritten differently, even inside one lender.
- Collateral: if the lender holds a valuable asset, the loss it can suffer on a default is smaller, so the score carries less weight.
- Your whole profile: a strong income and a low burden on that income can offset a middling score.
Because of this, two people with the same score can get different answers from the same lender, and the same person can get different answers from two lenders. A score that is often enough for one product can fall short for another.
How the score matters, loan type by loan type
The table shows how much weight the score usually carries and what tends to compensate when it is weak. "Often" describes common practice, not a rule. Check each lender's published criteria before you apply.
How much the credit score matters by loan type, and what can compensate
| Loan type | How much the score matters | What can compensate for a weaker score |
|---|---|---|
| Personal loan (unsecured) | High. Often the first filter, because there is no asset behind the loan. | Steady salary from a stable employer, low existing EMIs, a smaller loan amount, a co-applicant with a stronger profile |
| Home loan | Medium to high. The property is the security, but the loan is large and long. | Higher down payment (lower loan-to-value), co-applicant income, long job or business record, clean repayment history in the last two years |
| Loan against property | Medium. Property value drives the limit, but the lender still checks your repayment record. | Lower loan against the property value, rental or business income that clearly covers the EMI, a co-applicant |
| Business loan (unsecured) | High. The lender looks at the owner's score and often the business's as well. | Stable bank turnover, GST and ITR filing on time, longer business vintage, a smaller loan, a co-applicant |
| Business loan (secured) | Medium. Collateral reduces the lender's risk. | Value and clear title of the asset, steady cash flow, co-applicant |
| Car or two-wheeler loan | Medium. The vehicle is hypothecated to the lender. | Larger down payment, shorter tenure, stable income, a co-applicant |
| Gold loan | Lower. Lenders mainly rely on the value and purity of the gold. Some still check the report. | The gold itself and the loan-to-value the lender sets within RBI limits |
| Education loan | Medium. Often judged on the co-applicant's profile, since the student has little history. | Parent or guardian as co-applicant with steady income, a strong course and institution, collateral for larger amounts |
For a closer look at each product, see the pages for salaried personal loans, home purchase loans, loans against residential property, secured business loans, new car loans, gold loans and domestic education loans.
What score ranges usually mean
Bureaus score on their own scales, and lenders group scores into bands in their own way. In general terms, scores in the upper part of the scale are often treated as comfortable, scores in the middle are often treated case by case, and scores in the lower part often need extra support such as collateral or a co-applicant. These are not promises of any outcome, and the exact bands differ between lenders and between products.
Two warnings about reading bands. First, a file with no history behind it (a "new to credit" file) is different from a low score, and lenders treat the two differently. Second, a high score can still be refused if the income does not support the EMI.
What lenders weigh besides the score
Factors lenders read alongside the credit score
| Factor | What the lender checks | Why it matters |
|---|---|---|
| Repayment history | Missed or late EMIs, cards paid late, settled or written-off accounts | The strongest signal of how you behave when money is tight |
| Credit utilisation | How much of your card limit you use | A high share suggests stress even when payments are on time |
| Recent enquiries | Number of lender checks in a short period | Many applications close together can look like a search for credit under pressure |
| Income and FOIR | Share of monthly income already committed to EMIs | Decides how large a new EMI can be |
| Age and job or business stability | Age at maturity, years in current job or business | Affects tenure and the lender's comfort that income will continue |
| Loan amount and tenure | How large the loan is against your income or the asset value | A smaller ask is easier to approve at any score |
| Collateral and LTV | Asset value and the share the lender finances | A bigger cushion reduces the lender's risk |
The income test is called FOIR (fixed obligations to income ratio). Our guide to loan eligibility and FOIR explains it step by step.
A worked example of why the score alone does not decide
Take two salaried applicants asking for a personal loan of ₹5,00,000. Applicant A takes home ₹60,000 a month and already pays ₹5,000 in EMIs. Applicant B takes home ₹60,000 and already pays ₹30,000 in EMIs.
Suppose a lender allows total EMIs up to 50 per cent of monthly income (an illustration, not a lender policy). That is ₹30,000. Applicant A has room for ₹25,000 of new EMI. Applicant B has no room at all, whatever the credit score. Even if B's score is higher than A's, B is likely to be declined or offered a much smaller amount. The score opens the door; the income test decides how far you can walk through it. You can test your own numbers with the FOIR calculator.
What can make up for a weak score
- Collateral: a secured loan such as a gold loan, home loan or loan against property depends more on the asset.
- A co-applicant with a stronger profile: income and credit history of both applicants are read together.
- A smaller loan or a shorter tenure that keeps the EMI comfortable.
- A larger down payment, which lowers the share the lender finances.
- Clean recent history: a lender may weigh the last 12 to 24 months more than an older slip.
- Correcting errors: a wrong entry in your report can pull the score down for no reason.
What not to do when your score is weak
- Do not apply to many lenders at once. Each application can add a credit enquiry, and too many lender checks in a short time can lower your score.
- Do not pay anyone who promises to repair your score. A genuine error is corrected through the bureau and the lender that reported it.
- Do not take a loan from an unknown app that asks for access to your phone contacts or gallery.
- Do not close old accounts in good standing just before applying; length of history helps.
How LOANZ 360 fits in
LOANZ 360 is a loan aggregator, not a lender. Before any application goes to a lender, LOANZ 360 compares your details with each partner lender's published eligibility criteria, so you apply only where you are likely to qualify. This helps avoid unnecessary credit enquiries; too many lender checks in a short time can lower your score. Checking your own score does not lower it. Our team prepares a credit assessment summary before the file reaches a lender. The lender, not LOANZ 360, decides every loan.
You can start with the eligibility check or read about borrower rights.
Frequently asked questions
Is there an official minimum credit score for a loan in India?
No. The Reserve Bank of India does not fix one score for all loans. Each lender sets its own credit policy, and it can differ by product and over time. Treat any figure you see online as a general idea, not a rule, and check the lender's published eligibility criteria.
Can I get a loan with a low credit score?
Sometimes, yes, though options narrow and terms can be less favourable. Secured loans such as a gold loan, or a loan with a co-applicant who has a stronger profile, are more often possible than an unsecured loan. See our guide on personal loans with a low credit score.
Does checking my own credit score lower it?
No. Checking your own score is not a lender enquiry. A lender's check when you apply is different and can be recorded. Too many lender checks in a short time can lower your score.
Do all bureaus show the same score?
Not necessarily. Each credit bureau uses its own model and scale, and it may hold slightly different data. A lender may pull a particular bureau, so a small difference between reports is normal. Large differences are worth checking for errors.
Do home loans need a lower score than personal loans?
Often the score is weighed less heavily because the property secures the loan, but lenders still read the whole report. A large home loan also depends on income, age and the down payment, so a good score alone does not decide it.
How long does it take to improve a score?
It depends on what is pulling it down. Paying every EMI on time, reducing card use and avoiding new applications help over months, not days. A genuine error corrected by the bureau can change the score faster.
Will a co-applicant's score matter?
Yes. Lenders usually read the credit history and income of every applicant. A co-applicant with a clean report can help, and one with problems can hurt.
Related reading: credit score and credit report explained, loan eligibility and FOIR, personal loan with a low credit score, why loans get rejected, co-applicant vs guarantor, credit score in the glossary, hard enquiry, credit report, FOIR calculator.