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The Best Loan Rates in India

While there is no single fixed cutoff, a credit score of 720 to 750 or above is generally considered favorable by most banks and financial institutions. A higher score increases your chances of approval and helps you secure lower interest rates and higher loan amounts.

Yes, it is possible to secure a personal loan with a lower credit score (under 650), but you may face higher interest rates, a smaller loan amount, or shorter repayment tenures. Additionally, applying with a co-signer who has strong credit or offering collateral (where applicable) can improve your chances.

The general documents required include: 1) Proof of Identity (PAN Card, Aadhaar Card, Passport, etc.), 2) Proof of Address (Passport, Utility Bills, Aadhaar Card), 3) Income Proof (Salary slips for the last 3 months, Form 16, or ITR for self-employed), and 4) Bank statements for the last 3 to 6 months.

Thanks to digital integrations, basic approval (pre-approval) on aggregator platforms like ours can happen in a few minutes. Final verification and disbursement by the lender typically takes between 24 to 48 working hours, depending on physical verification or documentation completion.

No, checking your credit score here is classified as a 'soft inquiry'. Soft inquiries do not impact your credit score in any way. Only 'hard inquiries'—which occur when a lender pulls your credit report to evaluate a formal loan application—can cause a temporary minor dip in your score.

Credit scores are typically updated once a month. Banks and financial institutions report your repayment behavior and credit utilization to credit bureaus (like Experian, CRIF, or CIBIL) every 30 to 45 days, after which the bureau recalculates your score.

You can improve your credit score by: 1) Paying all your EMIs and credit card bills strictly on time, 2) Keeping your credit utilization ratio below 30% of your total limit, 3) Avoiding opening too many loan accounts in a short period, 4) Maintaining a healthy mix of secured and unsecured credit, and 5) Regularly checking your credit report to identify and dispute any errors.

The debt-to-income (DTI) ratio is the percentage of your monthly income that goes toward paying off existing debts (EMIs). Lenders prefer a DTI ratio below 40% to 50%. A high DTI ratio suggests you might be over-leveraged, which increases risk and can lead to loan rejection even if you have a good credit score.

Lenders look at several key factors: 1) Your credit score and repayment history, 2) Monthly net income and stability of employment, 3) Your age (typically between 21 and 60/65 years), 4) Your debt-to-income ratio, and 5) The type of employer you work for (corporate employees, PSU employees, and government staff are often considered low-risk).

In addition to the interest rate, you should watch out for: 1) Processing fees (usually 0.5% to 3% of the loan amount), 2) Prepayment or foreclosure charges (fees for paying off the loan early), 3) Documentation or stamp duty charges, and 4) Late payment fees or bounce charges in case of missed payments.