How Much CIBIL Score Is Required for ₹1 Lakh Loan?

When you apply for a ₹1 lakh loan in India, one of the first things a lender checks is your CIBIL score. Your CIBIL score is like your financial report card — it tells lenders how reliable you’ve been with borrowing and repaying money in the past.

But here’s the big question — what is the minimum CIBIL score you actually need for a ₹1 lakh loan? And is it possible to get the loan if your score is low? The answer depends on the type of loan, lender policy, and your overall credit profile.

In this detailed guide, we’ll break down:

• The ideal and minimum CIBIL scores for a ₹1 lakh loan
• How different lenders treat your score
• Other factors that impact your loan approval
• Tips to get your loan approved even with a low score

By the end, you’ll know exactly where you stand and how to improve your chances.

What Is a CIBIL Score?

Your CIBIL score is a 3-digit number ranging from 300 to 900, maintained by TransUnion CIBIL — India’s oldest credit bureau. It’s based on your:

• Loan repayment history
• Credit card usage
• Number of loans/credit cards
• Loan applications
• Credit age (how long you’ve had credit)

Score Ranges:

Minimum CIBIL Score for ₹1 Lakh Loan

For most unsecured personal loans, the minimum CIBIL score requirement is 700 or above. But here’s the nuance:

💡 Key takeaway: If you have 700+, you are in a strong position for a ₹1 lakh personal loan. If you are between 650–699, you may still get approval but at higher interest rates. Below 650, your best bet is a secured loan like a gold loan or FD-backed loan.

Why Lenders Care About Your CIBIL Score

Lenders want to minimise the risk of lending. A higher CIBIL score means:

• You’ve repaid past loans on time
• You don’t overuse credit
• You haven’t defaulted in the past

Think of it this way: If two people apply for a ₹1 lakh loan and both earn ₹40,000/month, but one has a CIBIL score of 780 and the other has 610, the lender will almost always choose the first applicant — and give them a better interest rate.

Other Factors That Matter Alongside CIBIL Score

Even if your CIBIL score meets the minimum requirement, lenders will also check:

1. Monthly Income Higher income = higher repayment ability. For ₹1 lakh loan, most banks require a minimum monthly income of ₹15,000–₹20,000.
2. Employment Type
   • Salaried employees in government/PSU/MNCs = lower risk
   • Self-employed = more scrutiny on business stability
3. Debt-to-Income Ratio (DTI) If you’re already paying multiple EMIs, your loan approval chances drop.
4. Credit Age Longer credit history = better score stability.
5. Past Defaults Even one unpaid loan can hurt your chances.

What If My CIBIL Score Is Low?

If your score is below 650, personal loan approval will be tough — but not impossible. You can:

• Apply for secured loans (gold, FD-backed, or property loans)
• Get a co-applicant with good CIBIL score
• Apply with your salary account bank (relationship benefit)

Ways to Improve CIBIL Score for Loan Approval

If you’re not in a hurry, improving your score before applying can save you thousands in interest.

1. Pay EMIs and credit card bills on time Even one late payment can drop your score.
2. Keep credit utilisation below 30% If your card limit is ₹1 lakh, try not to spend more than ₹30,000.
3. Avoid multiple loan applications at once Each hard inquiry lowers your score.
4. Maintain old credit accounts Long credit history = better score.
5. Check for errors in your CIBIL report Dispute wrong entries immediately.

CIBIL Score vs. Interest Rate for ₹1 Lakh Loan

Example Scenarios

Scenario 1 – High Score (CIBIL 780)

• Loan Amount: ₹1 lakh
• Interest Rate: 12%
• Tenure: 2 years
• EMI: ₹4,707
• Total Interest: ₹12,968

Scenario 2 – Low Score (CIBIL 640)

• Loan Amount: ₹1 lakh
• Interest Rate: 26%
• Tenure: 2 years
• EMI: ₹5,373
• Total Interest: ₹28,952

Difference: The low score borrower pays ₹15,984 extra in interest for the same loan amount.

Alternatives if You Don’t Meet the Minimum CIBIL Requirement

1. Gold Loan – No CIBIL needed, quick disbursal
2. Loan Against Fixed Deposit – Low interest (1–2% above FD rate)
3. Peer-to-Peer Lending – Flexible, but high risk and interest
4. Co-signed Personal Loan – Apply with someone who has good score

FAQs

Q1. Can I get ₹1 lakh loan with 600 CIBIL score? Possible only through secured loans or with a co-applicant.

Q2. Will my CIBIL score drop if I check it before applying? No, checking your own score is a soft inquiry and doesn’t affect your score.

Q3. Which bank is easiest to get ₹1 lakh loan from? Your salary account bank often has the highest approval chances.

Q4. How quickly can I improve my CIBIL score? With consistent payments and low credit use, you can see improvement in 6–12 months.

Get ₹1 lakh personal loan in India with GoodScore

For a ₹1 lakh personal loan in India, a CIBIL score of 700+ gives you the best approval chances, while 750+ gets you the lowest interest rates. If your score is lower, you still have options — but you may need to go for secured loans or work on improving your score first.

Final tip: Always check your CIBIL score and loan eligibility before applying. This prevents rejections and helps you get the best deal.

✅ Check your free CIBIL score now on GoodScore and see personalised loan offers based on your profile.