When you apply for a personal loan, lenders look at your credit score to judge how safely you handle credit. Scores in India usually range from 300 to 900. A higher number means lower risk for the bank and a better chance of quick approval at a reasonable interest rate.
What Score Do Lenders Usually Expect
- 750 and above
Strong profile for most banks and NBFCs. You are likely to get faster approval and better rates if your income and documents are in order. - 700 to 749
Often acceptable. Approval is common if salary stability, FOIR, and employer profile are good. Rates may be slightly higher than the best slab. - 650 to 699
Possible but not guaranteed. Lenders may ask for more documents, higher income stability, or offer a lower loan amount at a higher rate. - Below 650
Tough zone. Many lenders will decline or offer small-ticket loans at high rates. Consider improving your profile before applying.
Why Your Score Is Only One Part of Approval
Banks look at the whole picture, not just the number. Key checks include:
- FOIR or EMI to income ratio – Lenders prefer total EMIs to be between 40 and 50 percent of net income.
- Repayment history – Recent delays or write-offs hurt approval even with a decent score.
- Credit utilisation – Regularly exceeding more than 30 percent of card limits is a red flag.
- Employment stability – Longer job tenure and a steady employer list help.
- Existing obligations – Many active loans reduce your borrowing room.
Which Bureau Score Do Lenders Use
Lenders in India pull scores from multiple bureaus, such as CRIF High Mark, Experian, and others. Your score may differ slightly across bureaus due to differences in data timing. What matters to the bank is consistent behaviour across reports. Track your profile with a trusted check credit score tool so you know where you stand before you apply.
How To Raise Your Score Quickly Before Applying
Give yourself 60 to 90 days to strengthen your file.
- Pay all bills on time – No misses on EMIs or card payments.
- Cut card utilisation below 30 percent – Make a mid-cycle payment if needed to keep the statement balance lower.
- Fix report errors – If a closed loan shows active or a timely month shows late, raise a dispute and recheck next cycle.
- Avoid new applications – Too many enquiries reduce your score and approval odds.
- Keep old accounts active – A more extended credit history supports the score.
Sample Scenarios
- Amit, score 770, salaried in Pune. – Strong chance of approval with a competitive rate if FOIR is under control.
- Priya, score 720, IT employee in Bengaluru – Likely to get approval. Keeping card usage below 20 percent for two cycles may lead to a better offer.
- Rahul, score 665, freelance designer – Possible approval with a smaller amount and a higher rate. Clearing card dues and waiting one cycle can improve terms.
Common Reasons Personal Loans Get Rejected
- Recent late payments or bounced EMIs
- High card utilisation in the last one or two statements
- Too many loan or card applications in a short period
- FOIR above the lender’s comfort
- Mismatch in documents or address
Quick Checklist Before You Apply
- Score close to or above 750
- Clean repayment record for the last 6 to 12 months
- Credit card usage is under 30 percent.
- FOIR within the bank’s threshold
- Report checked for errors and corrected if needed.
If Your Score Is Below 700
Do not rush the application. Spend a few weeks cleaning up utilisation and payment behaviour. Close small dues, pay on time, and avoid new enquiries. Recheck your score and apply when the profile looks stable. A slight delay now can save a lot of interest later.
Final Thoughts
For most lenders, a score of 750 and above is the comfort zone. Scores in the 700-749 range often work with substantial income and a clean history. Below 700, approvals get tighter and rates rise. Prepare your profile, track your report, and apply when you are clearly ready.
Bas itna yaad rakho. Time par payment, low card usage, aur report clean rakho. Score naturally improve hoga aur personal loan approval easy ho jayega.
