CIBIL Score for HDFC Personal Loan

Emergencies often come unannounced. One cannot be ready all the time, especially if it is a financial emergency. Sometimes your savings or the amount you expected for a particular event, is not enough to cover the expenditure and thus you may require a personal loan at the earliest.

Banks today are willing to offer personal loans to eligible candidates at competitive interest rates. In order to determine the eligibility of an applicant, HDFC Bank refers to the candidate’s CIBIL report and offers a personal loan to an individual with a favourable credit score in the lowest turnaround time possible.

Minimum CIBIL Score required for HDFC Personal Loan

There is no defined minimum CIBIL score for HDFC personal loan. However, HDFC Bank prefers applicants having a CIBIL Score of 750 and above as it denotes higher creditworthiness and less risk.

The bank may approve your application if your credit score is above 650 but a lot of other factors will also be considered while approving the application.

The personal loan approval depends completely on the bank’s internal criteria. It may approve the loan application even if the CIBIL score is 650 and may reject the application of an applicant who has a credit score of 760. This is because the bank considers a lot of other factors while approving your loan application.  Read more about Personal Loan Eligibility and Approval

Ways to Improve your Credit Score

It is always recommended to have a good credit score, in order to be able to get the personal loan approved successfully. Keep a regular tab on your credit score so that you know where you stand. It is a misguided notion to presume that if you are not spending much or if you already have a good credit score; it will remain so without any efforts from your end. Your expenditure habits constantly affect your CIBIL score. If you find your credit score dwindling, you can do the following to make sure your credit score is good:

• Judicious Use of Credit Cards: If you have a credit card, use it. But also make sure that you regularly clear the credit card bills. Simply swiping your credit card will not add to your credit ratings. Paying your dues timely will.
• Timely Payment of Dues: If you have any dues outstanding, such as EMIs, credit card bills, etc. which has been long overdue, then that will add to a negative rating. Make sure you clear them out at the first chance you get.
• Maintain Low Credit Utilization Ratio: Credit Utilization Ratio is the ratio of the credit you avail to the total available credit. Low credit utilization ratio of 30% or less is taken as a sign of good financial health. Maintaining such limits regularly will have a positive impact on your credit score.
• Do not Apply for New Credits too often: It does not help to apply for multiple credit cards at once, just because you can. Apply for a credit only if you need it and do not make multiple applications at the same time. It may have a negative impact on your credit score.

Follow these few simple but effective steps, and you will never fall below the expected credit score. This is important because money matters should never be taken lightly. 

What is a CIBIL Report?

A CIBIL report is basically a credit report of an individual offered Transunion CIBIL that is one of the four credit bureaus offering this service in India. Because it is one of the oldest and most commonly used bureaus, many refer credit score as CIBIL score.

Your credit score is a three digit number calculated on the basis of credit products availed by you in the past. The credit score along with some additional data is combined to produce a credit report. A bureau provides this report to the lender when the latter wishes to check a borrower’s creditworthiness at the time of approving the loan.

Why is CIBIL Score Important?

At the time of evaluating a loan application, the entity offering the credit, takes upon itself the risk of a possible non-payment by the borrower. The higher the loan, the higher the risk. In order to protect themselves from incurring any such bad debts, lenders prefer to get a detailed credit history of an individual. 

The credit report offered by CIBIL gives an in-depth analysis of a person’s credit history. The lender can then determine whether or not to extend a loan to such a person, based on the credit report.

It is, therefore, very important that a person keeps a good credit score. This will help them get loan approvals easily and possibly at a lesser rate of interest.

Also Know: What are the 6 benefits of having a good credit score?

HDFC Personal Loan

HDFC personal loan is offered to eligible applicants in very less time and can be applied online through Paisabazaar in paperless format. This means, all you need to do is go online, fill the forms and have your loan approved in as less as 96 hours. However, there are certain prerequisites before the personal loan is approved. One of them is the CIBIL score.

You must have the required CIBIL score before you can apply for a personal loan at HDFC. Since personal loans are of an unsecured nature, most banks ask for a high CIBIL score. Any score of 750+ or as close to 900 is considered good by lenders. The higher the score, the better are the chances of loan approval. Anything below 650 can make it very difficult for you to get your loan approved.

Also Read: How Does CIBIL Score Impact on Your Loan Interest Rate?

Features of HDFC Personal Loan

Before applying for a personal loan at HDFC, it is better to know what you will be offered. This helps you in making an informed decision. Here are some of the characteristics of the personal loan offered at HDFC:

• Interest Rate: 10.75% to 24.00% (Fixed Rate)
• Loan Amount: Maximum up to Rs. 40 lakh
• Collateral/Security: Not required
• Repayment Tenure: Maximum up to 60 months
• Guarantor: Not required 
• Loan Approval: Within 4 working days subject to documentation and verification
• Funds within 10 seconds for Pre-approved customers
• The loan also offers a free personal accident cover
• There is an availability of customised loans for corporate sector employees or women professionals

Useful Resource: Check current personal loan interest rates offered by HDFC Bank