What Is a CIBIL Score?
Your CIBIL score is a three-digit number ranging between 300 and 900 that reflects your creditworthiness. It is generated by TransUnion CIBIL based on your repayment history, credit utilization, loan applications, and other financial behavior.
- Higher score (750+) → High chances of quick loan approval
- Average score (650–749) → Possible approval, but with higher interest rates
- Low score (<650) → Chances of rejection are high
Minimum CIBIL Score for a ₹10 Lakh Personal Loan
Most banks and NBFCs in India require a minimum CIBIL score of 700 or above to approve a ₹10 lakh personal loan. However, for faster approval and lower interest rates, a score of 750+ is considered ideal.
- CIBIL 750–900 → Easy approval, lowest interest rates
- CIBIL 700–749 → Approval possible, but higher interest rates
- CIBIL 650–699 → Approval is difficult, collateral or guarantor may be required
- CIBIL below 650 → Very low chances of approval
Why Does CIBIL Score Matter for a 10 Lakh Loan?
Since a personal loan is unsecured, banks do not have collateral security. Your CIBIL score acts as proof of your repayment capability. Lenders check:
- Past repayment history – Any defaults or late payments?
- Credit utilization ratio – Do you max out your credit cards?
- Loan inquiries – Have you applied for too many loans recently?
- Debt-to-income ratio – Do you have enough income to manage a new loan?
How to Improve Your CIBIL Score for Loan Approval
If your score is low, you can still work towards improving it before applying for a ₹10 lakh loan:
- Pay bills and EMIs on time – Timely repayment boosts credit score.
- Keep credit utilization below 30% – Don’t use your entire credit limit.
- Avoid multiple loan applications – Too many inquiries lower your score.
- Maintain a healthy credit mix – Balance between secured and unsecured loans.
- Check your CIBIL report regularly – Correct any errors immediately.
Other Factors Banks Consider Apart from CIBIL Score
While the CIBIL score is critical, lenders also review:
- Income stability – Monthly income above ₹40,000–₹50,000 is usually required.
- Employment type – Salaried professionals and government employees are preferred.
- Existing debt – Fewer liabilities mean better chances.
- Age – Applicants between 21–60 years are usually eligible.
Final Thoughts
To secure a personal loan of ₹10 lakh, aim for a CIBIL score of 750 or above. A strong score not only ensures quick approval but also helps you get the best interest rates. If your score is low, work on improving it before applying to avoid rejection.
FAQs
Q1: Can I get a personal loan of ₹10 lakh with a CIBIL score of 650?
A: It’s difficult, but some NBFCs may approve at a higher interest rate or ask for collateral.
Q2: What is the ideal CIBIL score for a ₹10 lakh loan?
A: A score of 750+ gives you the best chances of quick approval and lower interest.
Q3: Will my loan application be rejected if I have a low CIBIL score?
A: Not always. You may get approval with stricter conditions, higher rates, or need a guarantor.
Q4: Can I apply for a personal loan without a CIBIL score?
A: Yes, but lenders may treat you as a high-risk borrower, and approval is less likely.
Q5: How can I check my CIBIL score for free?
A: You can check it on the official CIBIL website or through many banks’ online port
Disclaimer: This article is for general information only. The interest rates and terms mentioned in it depend on the policies of the bank and NBFC. These may change from time to time. Before taking any type of loan, get complete information from your bank.