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Published on May 21, 2021Updated on Oct 14, 2026

There may be moments in your life when you need some extra money to meet your short-term or long-term goals. Whether it's for a marriage, buying a house, a vacation or home renovation, a personal loan can help you to fulfill your financial obligations.
If you are looking to avail of a personal loan, one of the first things that a lender will check is your CIBIL score for loan approval.
TransUnion CIBIL is one of the most trustworthy credit bureaus in India. Lenders such as non-banking financial companies and banks will check CIBIL score of a borrower while processing the borrower’s loan application. While there are other credit scores such as the CRIF Highmark which is equally accurate, CIBIL is more widely known in India.
Lenders use credit scores to assess a borrower’s creditworthiness. If you manage your finances well and have a good credit history, you should have an excellent score. For most lenders, 750 or above is considered to be an excellent CIBIL Score for a Personal Loan.
Borrowers with lower CIBIL scores may have a hard time getting loans from financial institutions. They usually end up paying higher interest rates on loans, or may even get rejected by the lenders.
Must Read: How is Your CIBIL Score Calculated?
Lenders also use various other parameters such as location, age, work experience, income stability, nature of the profession, etc. to assess your eligibility. However, when it comes to applying for a personal loan, having a sound CIBIL score for loan approval goes a long way in securing a nod from the lender of your choice.
Must Read: How to Check CIBIL Score Online With your PAN Card?
Apart from these, there are also some additional benefits of having a good credit score. For example:
*Terms and conditions apply
Important Note: This article is for general informational purposes only and may be subject to change from time to time. As product features, eligibility criteria, interest rates, charges, fees, tenures and other terms may be revised as per SMFG India Credit's policies, readers are advised to refer to the latest details from the respective product pages (please select from the top menu). For the latest loan charges, please visit Charges & Fees Link and for the latest Interest rates, please visit Interest Rate Rationale. Please note that final loan terms, disbursement process and eligibility criteria will depend on SMFG India Credit's policies at the time of loan application.
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