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What is the minimum credit score required for a personal loan application?

Money Control · 9h

In India, the borrower's credit score is crucial in securing a personal loan. Lenders assess creditworthiness through the credit score, which is a three-digit number reflecting the borrower's financial responsibility based on credit history. A higher credit score increases the chances of loan approval and provides better interest rates. The minimum credit score required varies, but many lenders prefer a score of 750 or above. Factors affecting the credit score include payment history, credit utilization ratio, credit history length, credit mix, and number of credit inquiries. To improve credit scores, borrowers should pay bills on time, reduce outstanding debt, regularly check credit reports for errors, and limit new credit applications. Monitoring credit scores is essential for informed financial decisions.