What Is the Minimum Credit Score for a Personal Loan?

To avail a personal loan, you must have a good credit score. Apart from your credit score, your current income, employment stability and existing debts also influence loan approval.

Shriram Finance offers key insights on various key aspects associated with your credit scores: 

• With a 600 or higher score, you are eligible for personal loans. A range of 600-699 may qualify for credit access but with higher interest rates.
• A score of 750 plus increases the approval chances with better rates. Lenders generally accept scores between 700 and 749. Scores below 600 make loan approvals tough.
• Your credit score reflects your financial history and ability to manage debt responsibly. A higher score indicates a lower risk for lenders, making loan approval easier.
• If your credit score is below the lender's threshold, you may still qualify for loans but at higher interest rates. A low score might limit your loan options.
• To secure a personal loan with a lower credit score, consider a co-signer or collateral to reduce risk. Improve your credit score by paying bills on time and reducing outstanding debts.