What’s a Good Credit Score to Get a Loan?

Meera teaches at a local school and needed a personal loan of ₹3 lakh. With her good credit score, the lender didn’t take long to give the green light. She was able to get the low-interest rate personal loan quickly and only had to share minimal documentation before the amount was credited.

Wondering what counts as a good credit score for better chances of loan approvals? Let’s break it down so you know exactly where you stand and how to improve your chances.

What Is a Credit Score?

A credit score is a quick snapshot of your borrowing history. It shows lenders how you’ve handled repayments and other credit in the past. In India, this score can be anywhere from 300 to 900. It’s worked out by credit bureaus, including CIBIL, Experian, Equifax, and CRIF High Mark.
Your score is based on a few key things -
●    Whether you pay your bills and EMIs on time
●    How much credit are you using compared to what’s available
●    The number of credit accounts you have and how old they are
●    How often do you apply for loans or credit cards
This score gives lenders a quick idea of how you’ve managed credit in the past. You can check your score or apply directly using a reliable loan app that gives you all the information in one place.

Why Does Credit Score Matter When Taking a Loan?

When you apply for any unsecured loans, for example, a personal loan, your credit score is one of the first things lenders check to determine your creditworthiness. Here’s how a stronger score can help -
●    Makes loan approvals more likely
●    Can lead to better interest rates
●    May allow for a higher loan amount
●    Speeds up the loan processing time

If you have a steady source of income, a slightly lower credit score may still get you approved, especially through an instant loan app.

What’s Considered a “Good” Credit Score in India?

Here’s a plain view of how scores are usually seen -

Please Note - Lenders use their own criteria, and credit score is only one factor.

How to Improve Your Credit Score

Progress does not happen instantly, but steady habits will gradually strengthen your credit profile. 
A solid score like Meera's makes it easier to get loans with terms that work in your favour. Here's what Meera did to build and maintain a healthy credit score -
●    Paid EMIs and bills on time
●    Kept her credit use below 30% of her total limit
●    Went through her credit report and fixed any mistakes

A Good Credit Score Strengthens Your Loan Application

When reviewing a personal loan application, lenders look at the full picture. They’ll check your earnings, how long you’ve been in your current job, any existing borrowings, and your repayment track record. Your credit score still matters, yet it’s not the only thing that counts. A higher score can often mean quicker processing and a better chance of getting terms that match your needs.
Before applying, check your personal loan eligibility using Hero FinCorp’s online tool to get an estimate based on your profile without affecting your score.

Frequently Asked Questions

1. Can I get a loan with a low credit score?

Yes. Approval isn’t off the table, but the terms could shift. You might face higher rates, reduced limits, or extra checks.

2. Does checking my credit score bring it down?

No. When you check your own credit score, it doesn’t hurt your rating. These are considered “soft checks”.

3. Are credit score and CIBIL score the same?

No. A credit score is a general 3-digit number showing your creditworthiness, given by any credit bureau. A CIBIL score is one type of credit score provided by TransUnion CIBIL, India’s most used credit bureau.

Disclaimer - This article shares general information only. It is not financial advice. Loan approval and terms depend on each lender’s policies and the applicant’s full profile.