What Credit Score Is Required for a ₹1 Lakh Personal Loan?

Looking to get a ₹1 lakh personal loan ? Your credit score plays a huge role in whether lenders say “yes” — and at what interest rate. In India, this three-digit number is one of the first things banks and NBFCs check when deciding whether to lend you money.

According to Rohith Reji, Co-founder of Neokred, “Lenders typically look for a credit score of 700 or above when approving a ₹1 lakh personal loan. A higher score indicates good creditworthiness, increasing the chances of approval and better interest rates. Some lenders may consider lower scores with stricter terms.”

What’s a Good Credit Score?

In India, credit scores range from 300 to 900. The closer you are to 900, the stronger your credit profile. Generally:

• 750 and above – Excellent credit score. You're more likely to get approved quickly and at favorable interest rates.
• 700–749 – Good score. Most lenders will still consider your application.
• Below 700 – Approval gets tougher, and if granted, the terms may be more rigid or costly.

But your credit score isn’t the only thing lenders evaluate. They also check:

• Your payment history
• Any past loan defaults
• Your debt-to-income ratio (DTI)
• Income stability and job consistency

Why It Matters
People take personal loans for a variety of reasons - from funding medical emergencies to managing wedding expenses or paying off high-interest debt. But no matter the reason, your credit score can make or break the process.

Aim for a score of 750 or above to boost your chances of approval and enjoy better loan terms. Keep an eye on your financial habits - pay EMIs on time, avoid too many loans at once, and keep your credit utilization in check.

Note: The credit scores mentioned above are for illustrative purposes only and are not definitive. They may vary based on multiple factors, including payment history, debt-to-income ratio, past defaults, and more. For personalized guidance, it's recommended to contact the customer service team of your respective lender on a case-by-case basis.

Beyond Credit Score: What Really Affects Your Personal Loan Approval?
When applying for a personal loan, most people fixate on their credit score - and rightly so. A high score can open doors to easy approvals and better interest rates. But did you know your credit score isn’t the only factor lenders consider?

Here’s a quick look at the other key elements that can make or break your loan application.

What Lenders Look For (Besides Your Credit Score)

• Income Stability

A steady, reliable income gives lenders confidence in your ability to repay. Gaps in employment or inconsistent earnings can raise red flags.

• Type of Employment

Salaried employees and self-employed professionals with a stable income over several years are preferred. The more predictable your earnings, the better your chances.

• Age and Background

Ideally, applicants should be between 21 and 60 years old. Clean records - free of past defaults or legal troubles—are essential.

• Existing Debt Load

Your Debt-to-Income (DTI) ratio plays a major role. A lower DTI means more breathing room for another loan and signals lower risk for the lender.

How to Boost Your Credit Score

If your score is on the lower side, don’t worry - here are clear steps you can take:

• Pay on Time, Every Time

Never miss EMIs or credit card payments. Punctuality is key to building trust.

• Watch Your Credit Usage

Keep your credit utilisation under 30%. High usage can make you seem overextended, even if you’re paying on time.

• Check Your Credit Report

Mistakes happen. Regularly review your report and fix any errors immediately.

• Limit New Credit Applications

Too many applications in a short span can harm your score. Each one triggers a hard inquiry, which lenders don’t like.

What’s a Good Credit Score?

750 and above: You’re in the safe zone. A score in this range usually qualifies you for a ₹1 lakh personal loan from top lenders.

Below 700: This could lead to rejection, higher interest rates, or tougher repayment terms.

While your credit score is important, lenders take a 360-degree view before approving a personal loan. A strong financial profile - with steady income, low debt, and responsible credit behavior - can tip the scales in your favor.

Disclaimer: This article is intended solely for educational purposes and aims to raise awareness about financial products such as loans, credit cards, and credit scores. NewsPoint does not endorse or encourage taking credit, as it involves certain risks, including high interest rates and hidden charges. Readers are strongly advised to consult certified financial experts before making any credit-related decisions.