In the realm of financial stability and borrowing, credit scores serve as the gatekeepers determining one's eligibility for loans and other credit facilities. Your credit score is essentially a numerical representation of your creditworthiness, consolidating your credit history, repayment patterns, and other financial behaviour into a single number. When it comes to a personal loan, a credit score is a crucial criterion that lenders scrutinize before approving applications.
650 credit score personal loans
In India, credit score is widely used by lenders to assess the creditworthiness of borrowers. This score typically ranges from 300 to 900, with higher scores indicating better creditworthiness. When applying for a personal loan, lenders often set a minimum credit score requirement to mitigate the risk associated with lending money. Credit score requirement changes from lender to lender, it depends on the lender’s terms and other factors. However, for availing of a Bajaj Finserv Personal Loan, borrowers are required to have a CIBIL Score of 685 or above.
Can we get a personal loan with a 650 credit score with Bajaj Finance Limited?
Credit score requirement differs from lender to lender. Bajaj Finance Limited is known for its flexible lending criteria and wide range of financial products. With a 685 credit score or above, you may be eligible for an instant personal loan from Bajaj Finance Limited, albeit with certain conditions. While a higher credit score would improve your chances of approval and potentially grant you better terms, Bajaj Finance Limited may consider other factors alongside your credit score, such as your income stability and employment history.
How does CIBIL Score affect your personal loan application?
- Approval: A higher CIBIL Score significantly improves your chances of loan approval. Lenders perceive individuals with higher credit scores as having lower credit risks, making them more likely to extend credit.
- Interest rates: Your CIBIL Score directly influences the interest rate offered on your personal loan. Borrowers with excellent credit scores are often rewarded with lower interest rates, resulting in reduced overall borrowing costs.
- Loan amount: A higher credit score may also enable you to qualify for a larger loan amount. Lenders are more inclined to lend substantial sums to individuals with proven creditworthiness, as reflected in their credit scores.
- Loan terms: Additionally, borrowers with higher CIBIL Score may enjoy more favourable loan terms, such as longer repayment periods and waived processing fees. Lenders may offer preferential treatment to borrowers with excellent credit profiles.
What credit score should borrowers aim for?
Ideally, you should target a credit score of 685 or above when applying for a personal loan. This not only increases your chances of approval but also enhances the likelihood of securing more favourable loan terms, including lower interest rates and longer repayment periods. Apart from the CIBIL Score, you need to meet these simple eligibility criteria mentioned below to qualify for a Bajaj Finance Personal Loan:
- Nationality: India
- Age: 21 years to 80 years*.
- Employed with: Public, private, or MNC.
- Monthly salary: Starting Rs. 25,001, based on the city you live in.
*You should be 80 years* or younger, at the end of the loan tenure.
How to apply for a Bajaj Finserv Personal Loan?
You can apply for a Bajaj Finance Personal Loan by following these simple steps:
- Visit the personal loan page and click on ‘APPLY’
- Enter your 10-digit mobile number and OTP.
- Fill in the application form with your basic details.
- Now, click on ‘PROCEED’ to visit the loan selection page.
- Enter the loan amount that you need. Choose from our three personal loan variants –Term, Flexi Term, and Flexi Hybrid.
- Choose the repayment tenure – you can select tenure options of 12 months to 96 months and click on ‘PROCEED’.
- Complete your KYC and submit your application.
In conclusion, while a 650 credit score may open doors to personal loan opportunities, aiming for a higher credit score is always beneficial. With a good credit score, you not only increase your chances of loan approval but also unlock access to more favourable loan terms, including lower interest rates and higher loan amounts. Before applying for a personal loan, it's essential to assess your credit score, compare lenders, use a personal loan EMI calculator to plan your repayments wisely and understand the terms and conditions thoroughly.
Apply now and get the best deal on our personal loan.
