HDFC Personal Loan Cibil Score

Need a personal loan from HDFC Bank? Check your CIBIL score before applying for a personal loan. CIBIL Score is a three-digit number ranging from 300 to 900. The minimum CIBIL Score for Personal Loan in HDFC bank is 750 and above. HDFC Personal Loan CIBIL Score accepted level at 700 will be considered if other factors stipulated are satisfactory.

CIBIL Score Required for HDFC Personal Loan

Funds arrangement is a constant process. You may need funds for various purposes like performing the wedding of some special, education expenses, a dream vacation, or meeting medical emergencies.

The quick and easy solution to your constant funds' requirement is personal loans. These loans are unsecured loans that need not require collateral security and will be available within a maximum period of 48 hours. The application process and documentation are hassle-free.

A good credit score range is the most important eligibility criteria for personal loans, and the HDFC CIBIL Score for Personal Loan is stipulated at 700 and above. Your credit score is the indicator of your creditworthiness.

Additional Reading: How to improve cibil score immediately?

Minimum CIBIL Score for HDFC Personal Loan

The first step HDFC Bank takes when you approach the bank for a personal loan to extract the CIBIL report. CIBIL score is crucial to decide creditworthiness and responsibility towards repayment of an applicant's credit. 

The minimum CIBIL Score for Personal Loan in HDFC Bank is 700. The bank does consider the applications with a minimum CIBIL score below 700 on a case to case basis. The rate of interest for loans that do not comply with the HDFC Personal Loan eligibility CIBIL Score requirement will be much higher and the terms and conditions more stringent.

There will be a relaxation in the HDFC Personal Loan CIBIL Score in the case of pre-approved loans to existing customers. Eligible customers will be the ones having a long-standing relationship with the bank and a proven credit record.

Additional Reading: How to get instant loan without cibil?

How does HDFC Calculate CIBIL Score for Personal Loan?

CIBIL Score, that is, the three-digit number, is an outcome of the evaluation on the basis of information derived from the Enquiries and Accounts details in the CIBIL report. The credit history, which forms a part of the CIBIL report, provides details of the applicants existing loan accounts, credit cards, the payment history pertaining to these loans and credit card dues. The overdue under these loan accounts and credit cards also will be mentioned. Details of the number of days past the due date for the outstanding under the loans and credit card dues will also be available.

The lenders share borrowers' borrowing and repayment history periodically with the Credit Information Bureau. The range of the CIBIL Score will be between 300 to 900. The higher the score, the better the chances of loan approval will be. 

HDFC does not calculate the CIBL score but will check the CIBIL report for the following:

Repayment history: The repayment behaviour of your existing and past loans will be the key indicator of your financial stability and responsibility towards paying off your debts. Prompt repayment history will be given the highest weightage while calculating the CIBIL Score.

Type of Credit: Availing a single type of loan will not help the credit score. 10% of the score is allocated for the credit type, and a mix of secured and unsecured loans is ideal to be eligible for the 10% score. Some of the banks will check for the type of loans availed. If the number of secured loans is higher than that of unsecured loans, the impact will be positive.

Tenure: The score allocated for tenure is 15% and depends on the duration of credit utilisation and the repayment pattern. So the bank will check for the utilisation of credit card limits and also the duration of the loans availed. If you are payments are made promptly and keeping your old loan accounts active will positively affect the credit score.

The utilisation of limits: High utilisation of credit limits regularly indicates dependency on credit and will negatively impact the credit score. It is recommended to limit the utilisation of limits to a maximum of 30% to maintain a good credit score range. HDFC bank will draw its own inference depending on the extent of credit card utilisation.

Loan enquiries: Every time you approach a lender for a loan, a credit report will be generated, which will be recorded as a loan enquiry in the credit report. Multiple loan inquiries will negatively impact the CIBIL score as it predicts an increasing debt burden in the future. 

Existing credits: 30% of the credit score is allocated for the existing credits. Minimising your credits will help in maintaining a good credit score.

Also Check: Cibil Customer Care Number

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CIBIL Score Range for HDFC Personal Loan

CIBIL Score is the yardstick for the creditworthiness and integrity of the applicant. HDFC loan eligibility CIBIL Score is stipulated at 750 and above. 

However, a lot depends on the internal credit policy of the bank. Various other factors will be considered before making a credit decision. The bank may approve a loan application even if the CIBIL score is below 750 and may reject an applicant's loan application with a credit score much higher than 750. There are a lot of other factors that the bank considers before approving a loan application.

HDFC Personal Loan ClBIL Score will not be a factor to provide pre-approved personal loans as these loans are provided for existing customers whose financial health is well known to the bank. The past credit track and the operations in either the savings bank or current account of the customer are good enough to assess the customer's financial health.

Additional Reading: Top Credit Rating Agencies in India

Importance of CIBIL Score for HDFC Personal Loan

The impression you create as the prospective borrower is very important. It pretty much depends on the CIBIL Score. A good credit score is an advantage for both the lender and the borrower. There will be an addition of a good asset to the lender, and the borrower will have better access to credit with favourable terms. The following are the importance of the HDFC Personal Loan eligibility CIBIL Score.

  • A good credit score range will help you get approval for an HDFC Personal Loan as the bank will be convinced about prompt repayment of the loan.
  • You will have the advantage to negotiate on the interest rates and relaxation in terms and conditions.
  • An applicant with a lower credit score will have to submit elaborate documents, add a co-applicant or guarantor and may also have to provide security. If you have a good credit score, the documentation will be simple, and the approval will be faster as you will not have the hassle of providing security or a guarantee.
  • You will be entitled to a higher loan amount with the best rate of interest.

Additional Reading: What is Equifax Credit Score?

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CIBIL Score Range to Avail Other Loans Offered by HDFC

The CIBIL Score assesses the financial stability of an applicant and so it is highly important to maintain a good credit score if you need easy access to credit. The CIBIL Score range for secured and unsecured loans vary, and the following is the good CIBIL Score range to avail of loans other than personal loans from HDFC.

Additional Reading: How to read cibil report?

CIBIL Score Required for HDFC Credit Card

The preferred CIBIL Score for HDFC Credit Card is 750. It does not imply that applicants with a lower score are ineligible for HDFC Credit Card. Credit Card will be issued to applicants with a credit score below 750, but the rate of interest will be higher, and the limit fixed will be much lower than that of the applicant with the ideal credit score. 

As such, there is no specific threshold for CIBIL Score for HDFC Credit Card. When the CIBIL Score is below the desired level, a thorough background check will be done before weighing the parameters for either approval or rejection of the Credit Card application.

Also Check: Cibil score for credit card

Benefits of High CIBIL Score to Avail HDFC Personal Loan

Applicants with a high CIBIL Score will have various advantages while availing HDFC Personal Loan.

  • Approval will be faster.
  • Documentation will be minimal.
  • Will get the best interest rate with an advantage of negotiating on the interest rate.
  • The quantum of the loan will be higher.

Additional Reading: How to raise cibil dispute?

FAQs

✅What is CIBIL Score in HDFC Bank?

The HDFC Personal Loan eligibility CIBIL Score is 750. However, the minimum Credit Score for a home loan will be 650 as it is a secured loan.

✅How can I increase my CIBIL score from 600 to 750?

If how to increase CIBIL Score is your concern, you can improve the score by following the steps given below:

  • Keep the credit utilisation to the minimum and at less than 30% for improving the score.
  • Maintain a good mix of secured and unsecured loans. Opt for secured loans as much as possible as a higher number of unsecured loans will dampen the CIBIL Score.
  • Review your credit report periodically. Whenever possible, review the report of all the major credit bureaus. Get the CIBIL Score, Equifax Credit Score as well as Experian Credit Score.
  • Try to keep your old loan accounts active by making prompt payments.

✅What is the benefit of a high CIBIL score?

A high credit score is considered favourable as it indicates several aspects like prompt repayment of loans, judicial utilisation of credit limits, a good mix of secured and unsecured loans. The bank can draw an inference about your financial stability with the above factors and when convinced, will extend the following benefits when you approach the bank for a loan.

  • Lower rate of interest
  • Quick approval
  • Simple documentation
  • Higher loan amount.
  • Negotiation of other charges like processing charges, prepayment charges etc.

✅Can I get a loan if my CIBIL score is 600?

Getting a loan with a score as low as 600 and availing of a personal loan without a CIBIL Score will be quite challenging. If you fulfil the following criteria, you will be able to obtain a loan with a low score or no score.

  • You are employed by a reputed employer and have a stable income.
  • Give a convincing and justifiable reason for delay or non-payment of loans in the past.
  • Provide security like Fixed Deposit, Gold or LIC Policies that can be easily liquidated.
  • Opt for a low amount.
  • Provide a co-applicant

Individuals with no credit history can avail of a credit card against Fixed Deposits and create a good score by making prompt payment of the credit card dues and keeping the utilisation level below 30% of the limit sanctioned.

✅How can I increase my CIBIL score in HDFC Bank?

Concerned about how to increase credit score in HDFC Bank. Then all you have to do is

  • Minimise the number of loans by availing a fresh personal loan for debt consolidation and pay the EMI of the fresh loan regularly on or before the due date.
  • Restrict the utilisation of HDFC Credit Card to less than 50% and attempt to pay the entire liability as per the credit card statement instead of opting for minimum due payment.
  • Maintain a good mix of secured and unsecured loans.

✅Can I get a personal loan with a 750 credit score?

The ideal credit score that the lenders look for is 750 and above to provide a loan. With a credit score of 750, you will easily obtain a personal loan. You will also have the advantage of a lower rate of interest, hassle-free documentation and quick approval.

✅How can I get a 900 CIBIL Score?

Normally the highest score awarded by any Credit Bureau will be 850. But still, if you are aspiring to get a 900 CIBIL Score, you can do so by

  • Clearing all the existing loans and credit card dues.
  • By keeping the utilisation level of limits to less than 30%