What Is a Good CIBIL Score in India?

Imagine this: You need ₹1 lakh urgently for a medical emergency or to book your flight tickets for a foreign trip. You apply for a personal loan online but are offered a high interest rate. At the same time, when your friend applies, they get a lower interest rate. So, what makes the difference? Most probably, your CIBIL score.

For any loan applicant, a CIBIL score is of utmost importance. It can determine your interest rate, approval chances and even the loan amount.

So, what is considered a good CIBIL score? And how can you make sure it works in your favour? 

What is the CIBIL Score Range and what it means
 

👉 A CIBIL score of 750 and above is considered excellent. However, with IDFC FIRST Bank you can get a personal loan starting at 730 CIBIL Score.

Why is 750+ the best CIBIL score for loans?
 

• Instant Approvals – Many lenders provide instant personal loan approvals if you have a high credit score.

• Lower Interest Rates – A higher credit score means you’re more likely to get loans at the lowest interest rates. For products like home loan or car loan, you can find information on how interest rates are correlated with your CIBIL score on bank websites.

• Higher Loan Amount– For example, someone with a 780 CIBIL score may be approved for a loan of ₹10 lakhs, while someone at 640 may only qualify for ₹3–5 lakhs.

How does your CIBIL score impact loan costs: an example
 

Consider two people applying for a ₹5 lakh personal loan for 5 years:

• Suvarna (CIBIL score: 780) is offered a personal loan at 9.99% p.a. Thus her EMI = ₹10,621 → Total interest ≈ ₹1,37,264
• Rajesh (CIBIL score: 650) is offered a personal at 15% p.a. Thus his EMI = ₹11,895 → Total interest ≈ ₹2,13,698

Suvarna can save nearly ₹76,434 simply because of a higher CIBIL score.

Minimum credit score for loan approval
 

Most banks and lenders require a minimum CIBIL score of 700 for personal loans. However, a CIBIL score of 750 and above can significantly improves your chances of getting the best personal loans.

• At 650–699, you may face higher rates and lower loan amounts.
• At 700–749, approval chances improve but not at the best terms.
• At 750+, you’re in the prime category for affordable loans.

Here are the steps to increase your CIBIL score and also maintain it
 

• Pay EMIs & Credit Card Bills on Time – Payment history can make up to 35% of your credit score. Missing a single EMI or bill can drop your CIBIL score.

• Keep Credit Utilisation Below 30% – If your credit card limit is ₹1 lakh, try not to spend beyond ₹30,000 at a time. This includes any amount converted into EMIs.

• Maintain a Healthy Mix of Credit – Having a healthy mix of secured (home loan) and unsecured (credit cards) builds credibility. However, this factor accounts for only 10% of your CIBIL score calculation.

• Avoid Frequent Loan or Credit Card Applications – Too many loan or credit card applications in a short period of time signal desperation and lower your CIBIL score.

• Check Your CIBIL Report Regularly – Keep a track of your CIBIL score and report using reliable websites and apps. Report any errors or inconsistencies immediately.

Why choose IDFC FIRST Bank’s FIRSTmoney Personal Loan?
 

If you’ve worked hard to build a strong CIBIL score, you deserve a loan that matches it. FIRSTmoney Personal Loan is designed for those who value convenience, transparency, and control.

• Low interest rates starting at 9.99% p.a.
• Zero foreclosure charges
• 100% digital application and instant approval
• Quick disbursal within 30 minutes