Standard Credit Score Ratings
Credit score ranges provide lenders with a snapshot of the borrower's reliability. A higher score signifies lower risk.
Credit Score Range
|
Credit Score Rating
|
Impact on Loan Approval
|
300-579
|
Poor
|
Very high risk; unlikely to be approved.
|
580-669
|
Fair
|
High risk; approval possible with high interest rates.
|
670-739
|
Good
|
Moderate risk; strong chance of approval.
|
740-799
|
Very Good
|
Low risk; excellent chance of approval and better terms.
|
800-850
|
Excellent
|
Lowest risk; guaranteed best possible interest rates and terms.
|
Minimum Credit Score for Business Loan Eligibility
Types of credit score
Here are the standard credit score ranges and their corresponding ratings:
| Credit score range |
Credit score rating |
| 300-579 |
Poor |
| 580-669 |
Fair |
| 670-739 |
Good |
| 740-799 |
Very good |
| 800-850 |
Excellent |
Minimum Credit Score for Business Loan Eligibility
Generally, a higher credit score means you are more likely to get approved and get better terms for your loan. For a Bajaj Finserv Business Loan, a credit score of 685 or higher is desirable.
However, a high credit score is not the only criterion to be eligible for our business loan. Here are all the requirements that you will need to meet:
- Nationality: Indian
- Business vintage: At least 3 years
- Work status: Self-employed
- Age: 21 to 80 years*
*You should be 80 years or younger at the end of the loan tenure.
It is important to check your credit score before you apply for our business loan. If it is low, you can improve your score by taking the following actions:
- Making timely payments on ongoing loans
- Limiting new credit applications
- Fixing errors on your credit report
- Maintaining a good credit utilisation ratio
How to Optimize Your Credit Score for Business Loan
Before applying for a business loan, checking your credit score is essential. If your score is low, improving it will dramatically increase your chances of approval and lower your cost of borrowing. Key steps to improve your credit score include:
- Making Timely Payments: This is the most critical factor. Ensure all ongoing EMIs and credit card bills are paid on or before the due date.
- Maintaining a Low Credit Utilisation Ratio (CUR): Keep the amount of credit you use low relative to your available limit (ideally below 30%).
- Limiting New Credit Applications: Avoid applying for multiple loans or credit cards simultaneously, as this signals credit hunger to lenders.
- Fixing Credit Report Errors: Regularly review your credit report and immediately report any inaccuracies or errors to the credit bureau.
Helpful resources and tips for business loan borrowers
