How Your CIBIL Score Affects a Loan

Your CIBIL score is one of the first things a lender checks when you apply for a loan. It affects whether you are approved, how much you can borrow and the interest rate you are offered. This guide explains how it works in plain terms.

What Is a CIBIL Score?

A CIBIL score is a three-digit number between 300 and 900 that sums up how you have handled credit in the past. It is worked out by TransUnion CIBIL, one of India's credit bureaus, from the loan and credit card information that banks and NBFCs report every month. Other bureaus (Experian, Equifax and CRIF High Mark) produce similar scores.

How Lenders Use Your Score

Score	What it usually means for a loan
750 to 900	Strong profile. Better chance of approval, higher amounts and rates at the lower end of the range.
650 to 749	Fair profile. Usually eligible; the rate and amount depend more on income and existing loans.
Below 650	Higher risk. Most lenders, including ClickMyLoan, will not approve a loan until the score improves.
No score (new to credit)	Not a rejection by itself. The lender looks at income, job stability and banking history instead.

At ClickMyLoan, the minimum CIBIL score is 650. Our interest rates range from 10.5% to 24% per annum, and a higher score helps you get a rate nearer the lower end. See every rate on our interest rates and charges page.

What Affects Your Score

Repayment history: paying EMIs and card bills on time matters most. Even one missed payment can lower your score.
Credit use: using a large share of your credit card limit every month suggests you depend on credit. Try to stay below about 30%.
Credit enquiries: every loan or card application adds a hard enquiry. Many enquiries in a short time can lower your score.
Credit mix and age: a mix of secured and unsecured credit, handled well over a long time, helps.

Does Checking Your Eligibility Affect Your Score?

No. Checking your own score, or using our eligibility calculator, does not touch your credit report. When you submit a loan application, the lender pulls your credit report, and that hard enquiry is recorded. One enquiry has a small effect; applying to many lenders at once has a bigger one.

How to Improve Your Score

Pay every EMI and credit card bill in full and on time. Set up auto-debit so you do not miss a date.
Keep credit card spending well below your limit.
Apply for new credit only when you need it, and to one lender at a time.
Check your credit report for mistakes, such as a loan you never took or a closed loan shown as open, and ask the bureau to correct them.
If you have no credit history, start small, for example with a low-limit credit card that you repay in full every month.

Free credit report: under RBI rules, each credit bureau must give you one free full credit report every year. Request it from the bureau's own website.

Next Steps

Read the personal loan eligibility and documents guide, see personal loan, business loan and travel loan details, or find more answers in our FAQ.