How Can I Get A Personal Loan With A 700 CIBIL Score?

Updated on: 21 Dec 2023 // 4 min read // Personal Loans
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A personal loan can be the quickest solution to many financial emergencies such as unexpected medical treatment, meeting immediate educational expenses, organising an unplanned wedding in the family, home renovation, and so on.

Almost every bank, as well as, non-banking financial company (NBFC) offer personal loans at different interest rates and terms. However, every lender has their own personal loan eligibility criteria that need to be fulfilled in order to obtain the loan. One such key criterion is the CIBIL score of the borrower. 

The minimum CIBIL score required for quick unsecured personal loan approval is usually 750. The higher your CIBIL score, the better because it indicates that you make payments on time and have experience in handling your credit responsibly.

If you have a CIBIL score of 700, you still have a chance to get personal loan approval. Many online personal loan providers and mobile applications provide a personal loan sanction on a CIBIL score of 700 or below. 

If you are trying to get a personal loan with a 700 credit score and wondering what options you have, there is some good news for you. 

A credit score over 670 is considered a good score. Hence, you should feel confident about your odds of getting a personal loan with a CIBIL score of at least 700. However, you should be wary of bad offers with high rates of interest and processing fees.

With a CIBIL score of 700, you are likely to get an affordable interest rate but it may not be the lowest one available in the market. It is important to compare personal loan offers so that you can decide which one suits you best. 

You must note that lenders evaluate each borrower on an individual basis. Just because someone secured a personal loan of Rs. 20 Lakhs with a 700 CIBIL score at a low-interest rate, does not guarantee that you will also secure the same offer. Most lenders use a variety of factors to assess borrowers and generate a personal loan offer.

If you need a personal loan for a low CIBIL score of 700, here are some simple steps to take before applying for the loan:

  • Assess how much personal loan amount you actually need to fulfil your requirement. Check if you can meet your financial requirements with your existing cash flow. If not, apply for a personal loan.
  • Look for a lender who can provide an instant personal loan for a low CIBIL score. Since you have a CIBIL score of 700, your chances of getting a personal loan at a higher interest rate are high. 
  • You can get a personal loan easily if you have a steady source of income with solid proof, such as salary slips, bank statements, income tax returns, etc. It proves that you can repay the loan on time.
  • If you have a 700 credit score, some lenders may also require you to offer collateral. This asset can help you get a loan more easily.
  • Even if your credit score is 700, you can apply for a personal loan with an eligible co-applicant who has a stable income. It is more beneficial if the co-applicant is your spouse, parent or child.
  • Avoid applying for a higher loan amount if you have a low CIBIL score, as lenders may not approve your loan due to poor creditworthiness. Also, the interest rate charged on a personal loan is lower when you apply for a smaller loan amount. 
  • Avoid applying for a personal loan with multiple lenders hoping that someone may approve of your application. It is reflected negatively on your credit report.
  • Understand the personal loan eligibility of the chosen lender and check the list of documents required before you apply. Gather all the required documents before you apply for the 700 CIBIL score loan. Your loan application will be rejected even if one of the documents is missing or inappropriate.

If you want to enhance your chances of getting instant personal loan approval at the lowest interest rate, you can take the right steps to increase your CIBIL score before applying for the loan: 

  • Clear all your dues on time. 
  • Avoid defaulting on loan payments, credit card bills, utility bills, or any other expense incurred on credit. 
  • You can set a reminder a few days before the due date or sign an e-mandate for EMI payments. 
  • Check your CIBIL score before applying for the loan to get an idea of why you have a low CIBIL score of 700. 
  • If you find any discrepancy in your credit report, you can even get it corrected.
  • Create a sound financial budget after you obtain a personal loan. If you have obtained a personal loan with a high rate of interest, repay that before you apply for another one.

Having an excellent credit score of 750 or more can be beneficial when applying for a personal loan. However, even if you have a CIBIL score of 700, it is still considered a good score. You can still get loan approval if you fulfill all other eligibility criteria.